Morocco’s Southern Provinces Witness Unprecedented Investment Boom 3534
For several years now, Morocco’s Southern Provinces have been experiencing an exceptional surge in investment activity. Numerous countries and major international corporations are drawn to the region’s vast potential, particularly in renewable energy, infrastructure, and industry. This momentum aligns with the Kingdom’s strategic vision to transform these territories into hubs of innovation and sustainable development, while strengthening their economic integration nationally and continentally. Notably, the Atlantic port of Dakhla is designed to open up the Sahel countries, fostering broader regional economic integration.
Contrary to allegations from Algiers, these regions enjoy a climate of peace and security conducive to both living and investing. The exponential development observed stems from an ambitious strategy backed by massive state funding as a driving force, alongside contributions from international partners. Since the launch of the New Development Model for the Southern Provinces by His Majesty the King in 2015, over €8.3 billion has been invested across infrastructure, energy, agriculture, industry, tourism, and social services.
The Southern Provinces have become a major center for renewable energy production, especially wind and solar power. By 2024, installed capacity reached 1.3 GW, representing a cumulative investment of around €2 billion and accounting for 21% of the nation’s clean energy output. Landmark projects such as Noor Laâyoune and Noor Boujdour, each with a 100 MW capacity, exemplify this focus. An additional €2 billion is planned to boost future capacity to 1.6 GW. Innovation is also evident in the emergence of green hydrogen, with pilot projects launched in 2024 across Guelmim-Oued Noun, Laâyoune-Sakia El Hamra, and Dakhla-Oued Eddahab regions.
The provinces boast significant mineral resources, especially phosphates. The Office Chérifien des Phosphates has invested 7.18 billion dirhams in a new fertilizer complex in Laâyoune and 5.26 billion dirhams in a phosphate port. The mining sector plays a crucial role in job creation and economic diversification.
Fishing is another key economic driver, accounting for nearly 39% of local activity. Investment priorities include processing industries, aquaculture development, and seafood product valorization, supported by modern ports and highway networks that facilitate exports.
High-value agriculture adapted to arid conditions benefits from investments in irrigation, desalination, and farm modernization. The sector has also expanded through the creation of industrial zones dedicated to processing and storage.
Major infrastructure projects, such as the 1,055 km Tiznit-Dakhla expressway completed in record time and the nearly €1 billion Dakhla Atlantic port, strengthen the Southern Provinces’ integration into national and African markets. This positions the region as a logistical hub connecting sub-Saharan Africa and serving as a gateway to the Americas and Europe.
Dakhla is poised to assume the commercial role once held by Essaouira, historically known as the “Port of Timbuktu.” His Majesty the King’s vision has been embraced pragmatically by Sahel countries following recent regime changes.
Coastal, ecological, and niche tourism is growing exponentially, with investments in hotels, resorts, and eco-tourism circuits. Local crafts benefit from enhancement programs, adding to the region’s tourist appeal.
Social sectors are also receiving significant investment. The Laâyoune University Hospital Center (CHU), for example, mobilized €110 million. Education and vocational training have expanded to support demographic and economic growth, with numerous faculties now serving local youth. Banking, insurance, and telecommunications services are evolving in tandem with other sectors.
Local authorities, fully aligned with this vision, are multiplying public-private partnerships to accelerate project implementation and pool resources. These initiatives foster job creation, improve living standards, and empower local populations, while reinforcing regional stability and attractiveness. Illustrating this momentum, the French Development Agency (AFD) recently announced a €150 million investment to support structural projects and regional development, reflecting the strengthened Morocco-France partnership.
This development and integration drive has provoked strong opposition from Algeria and the separatist group it sponsors. The Polisario Front, increasingly desperate, has escalated provocations, including blocking MINURSO logistical convoys and issuing terrorist threats against foreign investors in a bid to disrupt regional development and internationalize the conflict.
Algeria, stuck in an outdated stance, harbors deep hostility toward Morocco’s advanced autonomy model, viewing it as a direct threat to its regional ambitions and support for the Polisario. Algiers condemns Moroccan projects in the Southern Provinces as colonial and illegitimate, attempting unsuccessfully to isolate Morocco diplomatically. In reality, Morocco’s only remaining support appears to be from parts of Africa-and even there, voices within the African National Congress (ANC) are urging a policy shift toward Morocco, now a major diplomatic player.
Despite these maneuvers, Morocco remains steadfast in its sustainable and inclusive development strategy, consolidating sovereignty and regional leadership. Its partners include Europe, the USA, China, France, Spain, Russia, and many others.
Through innovation, sustainability, and inclusion, Morocco is transforming its Southern Provinces into engines of growth benefiting both the nation and the entire African continent-a true model of integrated and resilient development.
