RABAT, Sept 1 – Morocco has developed stronger trade and manufacturing links with Europe than with other African markets, according to a new World Bank report examining the continent’s progress in regional integration and industrial development.
The report, “Integrating Africa: From Threads to Hubs,” says most African economies remain involved in global value chains mainly by exporting raw minerals, crude oil and unprocessed agricultural products. Only a small number, including Morocco, Kenya, South Africa and Tunisia, have developed deeper manufacturing links by importing intermediate goods for processing and assembly.
Morocco’s strongest examples are in the automotive and aerospace sectors, supported by export processing zones and global buyer networks. The country is also among Egypt and South Africa in driving processed-chemicals trade within Africa, covering products such as plastics, fertilisers and chemicals, a market worth about $2.7 billion.
The report says Morocco and Tunisia have developed niches in electronics, pharmaceuticals and automotive wiring systems, but much of their trade is directed towards Europe rather than African markets. It adds that their capabilities in machinery, chemicals and pharmaceuticals could support wider African production networks.
However, regional trade in North Africa remains limited. The Arab Maghreb Union (AMU) is ranked as Africa’s least integrated regional bloc, with trade between its members accounting for less than 5% of their total trade. The report links this to political divisions, regional tensions and weak institutional coordination.
This contrasts with the Southern African Development Community, which has the continent’s highest level of regional integration, with intra-African trade at about 37%.
The World Bank describes Morocco’s industrial growth as the result of deliberate policy choices, with early investment in pharmaceuticals, electronics and automotive components supported by public-private cooperation, European links and infrastructure.
Morocco is also identified as a potential provider of low-carbon trade frameworks as the European Union’s Carbon Border Adjustment Mechanism puts greater pressure on exporters to meet environmental standards.
The report notes that political tensions can still affect regional cooperation, citing Algeria’s 2021 decision to cut power exports to Morocco.
More broadly, nearly 85% of Africa’s trade leaves the continent, while intra-African trade accounts for only 15% to 17% of exports. However, trade within Africa is more diversified and manufacturing-focused, with manufactured goods making up more than 60% of intra-African trade.
The report calls for the African Continental Free Trade Area to move beyond legal agreements towards practical integration, saying deeper agreements could increase exports by up to 56%.
For Morocco, the report says the challenge is to use its established industrial base to expand further into African markets, particularly neighbouring countries where its potential remains largely untapped.
