Casablanca: the economic house driving industry growth

Casablanca, is well known as Morocco’s largest city and economic capital (Rabat is the Capital), has experienced significant economic and industrial growth over the last year. This boom of the economy is known for its strategic location in the center of Morocco near the Atlantic, and vibrant business environment. Today, Casablanca continues to be a major driver of Morocco’s overall economic performance and the best city to attract investors.

Here, some important statistics indicators we will explore of Casablanca’s industry growth, population dynamics, GDP contributions, and more.

Casa population growth

With a population of approximately 4 million people over 37, it remains as the largest populated city in Morocco. The city has seen a growth rate of about 2% annually, driven by rural-urban migration and natural population increase. This growing population supports a dynamic manpower market, fueling various sectors, particularly manufacturing, services, and local and international trade.

GDP and economic contributions

In 2023, Casablanca’s GDP reached an estimated $65 billion, contributing significantly to Morocco’s national GDP of $130 billion. The city’s economy grew by approximately 4% over the past year.

Casablanca’s robust economic performance is due to the diversified industrial base, with Morocco attracting strategic investments, and favorable business environment.

Industrial growth and key sectors

Casablanca’s industrial sector has witnessed impressive growth, supported by government initiatives and private sector investments. Key industries driving this growth include:

  1. Manufacturing: The manufacturing sector remains at the top of Casablanca’s economy. In 2024 the sector is expected to grow, driven by increased production especially with automotive companies like Renault, electronics, and textiles. Major companies and industrial zones in the region have expanded their operations, contributing to job creation and export growth.
  2. Construction: The construction industry saw an important growth rate, fueled by ongoing infrastructure projects, and facilities, residential developments, and commercial real estate expansions.

Casablanca continues to attract significant investors in real estate development, enhancing its status as a modern and well-connected city.

  1. Financial Services: One of the most important aspects of Casablanca is it’s a home to the Casablanca Finance City hub, a leading financial institute in Africa. The financial services sector is growing in 2024, with an increase in banking, insurance, and investment activities. The CFC has attracted numerous multinational companies, aiming to invest in Africa, further boosting the city’s economic profile.
  2. Logistics and Trade: Casablanca’s strategic location near the Atlantic ocean and port facilities make it a crucial logistics and trade hub. The port of Casablanca handled over 30 million tons of cargo in 2023, representing a 4% increase from the previous year. The city’s logistics sector is growing, supported by improvements in transportation infrastructure and trade facilitation especially after the High Speed Train (TGV) linking Tangier to Casa and in 2027 linking Tangier with Agadir.
  3. Morocco’s startup scene is also evolving, with innovative companies like Chari, Youcan, Devinstock, StayHere leading the innovation.  While Chari is revolutionizing e-commerce with its efficient distribution services. Devinstock offers a business management platform that empowers small and medium businesses. The startups highlight the dynamic and rapidly growing entrepreneurial ecosystem in Morocco, making it an exciting time for entrepreneurs and investors of the business landscape here.

Employment

This success is fueling transformation happening in Morocco’s economy, companies aim for more growth and development. Casablanca’s expanding industries have positively impacted employment, with the city boasting a labor force of around 1.5 million people. The city’s focus on workforce development, training, and higher education institutions like engineering schools, universities and also the OFPPT has played a critical role in providing skilled labor to meet industry demands.

Government initiatives and future prospects

The Moroccan government led currently by A. Akhnouch has been instrumental in fostering Casablanca’s industrial growth through various initiatives and reforms. Key policies include investment incentives, infrastructure development, digital transformation and support for small and medium-sized enterprises (SMEs). The government’s Vision 2030 strategy aims to further enhance Casablanca’s role as an economic powerhouse by focusing on innovation, digital transformation, and sustainable development.

Casablanca’s industrial growth in 2023 highlights the city’s critical role in Morocco’s economic landscape. With a growing population, robust GDP contributions, and thriving key sectors, Casablanca continues to attract investments and drive national economic progress. The city’s future prospects remain bright, with ongoing government support and strategic initiatives set to sustain and accelerate its industrial and economic growth.

As Casablanca moves forward, it will undoubtedly continue to be a beacon of industrial and economic dynamism in Morocco and the broader African continent.

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