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07 January 2025

Morocco Advances Infrastructure Through Investments And Trade Deals

Marsa Maroc invests heavily as new customs framework with Spain aims for regional trade integration.

Morocco's leading port operator, Marsa Maroc, is making significant strides in East Africa through its recent investment initiatives aimed at enhancing regional infrastructure. The company has announced its plans to invest in Damerjog Oil FZE, situated in Djibouti, which is focused on developing oil and gas terminals and pipelines across the East African region.

To spearhead its expansion efforts, Marsa Maroc has established Marsa Maroc International Logistics, tasked with overseeing these foreign investments. This subsidiary is expected to manage operations for the Djibouti project through its local branch, Marsa Djibouti—a move symbolizing Morocco's ambition to build strong supply chains for gas and oil across the continent.

Marsa Maroc operates nine ports within Morocco, including the pivotal Tanger Med terminal. The company recently cemented its position by finalizing a 25-year agreement to manage the 3.4 million TEU terminal at the new Nador West Med Port. Such moves highlight its commitment to boosting infrastructure capabilities and enhancing logistical connectivity both domestically and abroad.

On another front, direct negotiations between Spain and Morocco concerning customs operations are underway. This development stems from years of deliberations following Morocco's unilateral customs closure with Spain back in 2018, which created significant friction between the two nations. Now, the new trade framework aims to modernize customs operations at Ceuta and Melilla, marking a pivotal turn in Spanish-Moroccan relations.

Although the details of the agreement remain largely undisclosed, Spanish officials indicated, "Negotiations on commercial customs are carried out directly between the Ministry of Foreign Affairs of Spain and Morocco." This initiative aspires to introduce modern customs practices, reflecting contemporary realities of international trade.

The new framework would empower Morocco to export various goods, including fruits, vegetables, fish, and aggregates, to Melilla. This is viewed as part of larger efforts to integrate trade relations within the region more effectively. Meanwhile, local leaders, including Melilla's President Juan José Imbroda, have raised concerns about how these arrangements might disproportionately favor Moroccan interests and potentially jeopardize local commerce.

Imbroda warned, "The arrangement could limit outbound trade from Melilla to Morocco, as Melilla lacks manufacturing facilities," prompting him to announce intentions to pursue judicial challenges against the proposed framework. Such objections highlight the delicate balance of interests at play, as economic dependencies shift within the region.

Sabrina Moh, the Spanish delegate to Melilla, responded by emphasizing the forward-looking nature of the proposed customs operations, which seek to methodically implement changes toward full normalization. Moh reiterated the government’s aim to coordinate efforts across various ministries to facilitate this transition without impositions on either side.

The strategy involves introducing reforms to traditional customs practices, with hopes of establishing lasting trade relations beneficial to both nations. Nevertheless, concerns linger among local business communities about the lack of reciprocity and fair trade arrangements. Discontented voices suggest skepticism about Morocco's intentions, with some fearing efforts to undermine local trade dynamics.

Spanish officials have countered accusations of unilateralism, insisting on the strategic importance of this customs framework, which is intended to forge sustainable bilateral trade relations, especially after prolonged stagnation since 2018.

The framework's eventual aim is to set forth effective trade regulations, enabling Morocco and Spain to work collaboratively toward controlling trade movements and enhancing regional economic ties. Such initiatives showcase Morocco's active role not only within its borders but also across the African continent and its European partners.

All things considered, the dual momentum behind Marsa Maroc's investments and the customs negotiations with Spain spotlight Morocco's broader infrastructure development plans, signaling its desire to strengthen both regional trade collaborations and influence.