The Chinese industrial group Jiangsu Yunyi Electric Co., Ltd. has officially entered the Moroccan market through the creation of a 100% wholly owned subsidiary in Morocco, marking a significant milestone for the country’s automotive industry. Established within the Mohammed VI Tanger Tech City, this strategic investment confirms Morocco’s growing attractiveness as a regional industrial hub. With an investment estimated at 660 million Moroccan dirhams, Yunyi Electric Morocco aims to strengthen automotive manufacturing capabilities while reinforcing global supply chains linking Asia, Europe, and Africa.

A strategic chinese investment in Morocco’s automotive industry

Yunyi Electric’s decision to invest in Morocco reflects a broader trend of Chinese foreign direct investment in the Moroccan automotive sector. As a global supplier of automotive electrical and electronic systems, the group specializes in alternators, starters, power electronics, and intelligent vehicle components. By establishing a manufacturing base in Morocco, Yunyi Electric seeks to support international automotive manufacturers while benefiting from Morocco’s competitive production costs, skilled labor force, and stable investment environment.

Morocco’s automotive industry has become one of the most dynamic in Africa, driven by strong government support, industrial acceleration zones, and proximity to European markets. Consequently, Yunyi Electric Morocco is well positioned to serve both local assemblers and export-oriented automotive supply chains.

Tanger Tech city: a key industrial platform

The choice of Mohammed VI Tanger Tech City plays a central role in the success of this investment. Designed as a flagship Sino-Moroccan industrial project, Tanger Tech offers integrated infrastructure, advanced logistics, and seamless connectivity to Tanger Med Port, one of the largest logistics hubs in the Mediterranean. As a result, manufacturers operating in Tanger Tech benefit from reduced lead times, optimized export routes, and efficient access to global markets.

For Yunyi Electric, this strategic location enables rapid industrial deployment while ensuring operational scalability. In addition, the presence of other international manufacturers within the zone creates synergies that enhance productivity and innovation across the automotive ecosystem.

Economic impact and job creation in northern Morocco

Beyond industrial capacity, the Yunyi Electric Morocco project is expected to generate high-value employment opportunities, particularly for engineers, technicians, and skilled industrial workers. This investment contributes to technology transfer, workforce upskilling, and the diffusion of advanced manufacturing standards within the local economy.

The project is likely to stimulate the development of a network of Moroccan subcontractors and suppliers, reinforcing local value chains. In the medium term, this dynamic could strengthen regional economic resilience and position northern Morocco as a center of excellence for automotive electronics and smart mobility solutions.

Morocco’s growing role in global automotive supply chains

Yunyi Electric’s expansion into Morocco aligns with global trends reshaping the automotive industry. As manufacturers seek to secure resilient and diversified supply chains, Morocco has emerged as a credible alternative to traditional production hubs. Its political stability, investor-friendly regulations, and strong trade agreements make it a strategic gateway to Europe and Africa.

In this context, the establishment of Yunyi Electric Morocco reinforces the country’s ambition to move up the automotive value chain, particularly in high-tech and electrification-related components. It also confirms Morocco’s capacity to attract long-term industrial investments aligned with future mobility trends.

A long-term industrial commitment to Morocco

The arrival of Yunyi Electric at Tanger Tech represents more than a single industrial project. It symbolizes a long-term partnership between Morocco and leading Chinese industrial players, built on competitiveness, innovation, and global integration. With a 660 million dirham investment, Yunyi Electric Morocco strengthens the national automotive ecosystem while contributing to sustainable industrial growth.

As Tanger Tech continues to attract international manufacturers, Morocco is consolidating its position as a key automotive and industrial hub in Africa, capable of responding to the evolving demands of global markets.

L’article Chinese Yunyi Electric invests $66 Million in Morocco’s automotive hub est apparu en premier sur Advaloria®Invest.

The new support scheme for very small, small, and medium-sized enterprises (SMEs), Adopted by Decree No. 2.25.342 and published in the Official Bulletin on July 3, 2025,  marks a major milestone in the implementation of Morocco’s Investment Charter. This measure aims to boost entrepreneurial momentum, support the creation of sustainable jobs, and address territorial inequalities in a post-COVID economic context and amid the Kingdom’s ambitions for industrial sovereignty.

The new scheme represents a paradigm shift in public support. Rather than ad hoc aid, it establishes a stable and transparent incentive framework for entrepreneurs. By aligning incentives with clear objectives (employment, regionalization, strategic sectors), Morocco is moving toward a more coherent and inclusive industrial policy.

It’s worth noting that this decree is part of broader efforts to improve the business climate, in line with recommendations from the New Development Model. Support for SMEs is identified as a critical lever for sustainable, inclusive, and resilient growth.

Clear and inclusive eligibility criteria

To qualify for this support, investment projects must meet several cumulative criteria: an investment amount between MAD 1 million and MAD 50 million, a projected ratio of at least 1.5 permanent jobs created per million dirhams invested, a minimum of 10% self-financing, and location within an activity sector validated at the regional level. This approach ensures smart selectivity, balancing rigor with accessibility.

These conditions prevent opportunistic projects and ensure public funds are directed toward productive, job-generating, and value-creating investments. It reflects a performance- and impact-driven approach.

Moreover, the regionally defined list of eligible sectors provides essential flexibility to address local specificities. This paves the way for true territorialized industrial policy adapted to each labor market’s potential.

Three types of incentives to stimulate targeted investment

The decree introduces three cumulative grants (up to 30% of eligible investment):

• Grant for stable job creation (up to 10%),
• Territorial grant (up to 15% depending on category A or B zones),
• Priority sector grant (10%).
  These financial incentives aim to promote employment, reduce regional disparities, and strengthen high-potential strategic sectors.

Each grant targets a complementary issue: social (employment), territorial (equity), and industrial (competitiveness). Their combination allows simultaneous targeting of employment, regional balance, and sectoral development.

The 30% cap offers a balanced compromise between incentive and fiscal responsibility. It ensures leverage while maintaining financial discipline for project developers.

A differentiated territorial approach

The territorial grant offers 10% support in category A provinces and 15% in category B, based on an upcoming list. This geographic differentiation corrects regional imbalances by attracting investment to underdeveloped areas. It aligns with the goals of territorial equity and spatial planning emphasized in the New Development Model.

This approach reinforces territorial cohesion by equipping peripheral zones with development tools. It promotes the emergence of new economic hubs beyond traditional urban centers.

The classification of A and B zones must be transparent and regularly updated to prevent rent-seeking behaviors and ensure fair resource distribution.

A focus on high-impact structural activities

The priority sector grant (10%) targets projects with strategic added value. It supports sectors contributing to “economic takeoff,” suggesting a focus on manufacturing, emerging technologies, agribusiness, and renewable energy, though the exhaustive list is still pending.

The goal is clear: to catalyze investments in sectors that boost competitiveness and economic sovereignty. This prioritization aligns public aid with national strategic ambitions.

For maximum effectiveness, a prompt and transparent publication of priority sectors is essential. This will improve predictability and alignment of investment plans with public policy objectives.

Newly established SMEs: A welcome integration

The scheme also includes businesses less than three years old, waiving the revenue requirement. For more mature companies, a turnover between MAD 1 million and MAD 200 million in one of the last three years is required. This inclusion is crucial for boosting entrepreneurship and reducing early-stage business mortality, often hindered by traditional financing constraints.

By removing the turnover barrier for emerging firms, the regime sends a strong signal to young entrepreneurs. It is a direct encouragement for business creation and innovation.

This measure also facilitates access for startups and innovative businesses, which can significantly contribute to national economic transformation despite their limited operating history.

Key role of CRIs and the MarocPME

Regional Investment Centers (CRIs) are at the heart of the system. They handle application submissions, assess eligibility, calculate grant amounts, and draft investment agreements. They work in coordination with the National Agency for the Promotion of SMEs (ANPME), strengthening territorial anchoring and proximity to investors.

This decentralized management accelerates file processing, enhances administrative responsiveness, and ensures better knowledge of the local economic fabric.

MAROC PME, for its part, provides technical support and expertise. It can help standardize practices, strengthen CRI capacities, and spread best practices in investment promotion.

Rigorous and phased disbursement procedures

Grants for territorial and priority activities are disbursed in two phases: 50% after reaching half of the committed investment, and the remainder upon fulfillment of contractual obligations. The job creation grant is disbursed based on supporting documents from the CNSS, ensuring traceability and formal sector alignment.

This phased disbursement approach encourages beneficiaries to fulfill long-term commitments. It instills a culture of results and accountability.

By linking payments to tangible indicators (investments made, jobs declared), the system boosts transparency and public credibility with economic stakeholders.

Controlled incentive capping

The 30% cap on cumulative grants prevents windfall effects while ensuring meaningful support. The decree also allows stacking with regional support programs, fostering synergy between national and local public policies.

This rule protects public finances while enabling intelligent coordination between governance levels.

Ambitious investors can thus develop hybrid and optimized financing plans by leveraging multiple complementary support mechanisms.

A favorable political and economic context

This scheme reflects Morocco’s royal vision for a productive and inclusive economy, often emphasized in royal speeches, including the 2022 Throne Speech. It supports the implementation of Framework Law 03.22, the legal backbone of the new investment policy. As the country seeks to reconfigure value chains and attract private investment, this regime enhances SME competitiveness, which represents over 90% of Morocco’s economic fabric.

Morocco has strong ambitions for reindustrialization and local development. This regime translates those ambitions into structured and actionable measures.

It also comes at a strategic time to reposition the Kingdom as a regional industrial hub, especially in high-value-added sectors.

Recommendations to maximize impact

To optimize the regime’s effectiveness, several recommendations emerge:

• Expedite publication of sectoral and territorial lists to provide clarity to investors,
• Provide targeted training for CRI staff to better support SMEs,
• Establish a public performance dashboard to track commitments and results, fostering transparency and trust.

A fully digitalized process—including a national portal for applications and tracking—could further streamline the investor experience.

Finally, a targeted and educational communication campaign would enhance the scheme’s reach, especially among rural and emerging areas.

 A Decisive step toward a more inclusive economy

This new SME support regime marks a strategic shift for Morocco’s economy. By combining employment promotion, territorial justice, and strategic sector development, it offers a coherent, incentive-based, and structured framework. Its success now hinges on operational execution, regional stakeholder engagement, and effective governance.

Through this scheme, Morocco reaffirms its commitment to making SMEs a core driver of economic growth, innovation, and sustainable job creation.

Close monitoring and agile adjustments will be necessary to ensure equitable and impactful implementation across the national territory.

L’article Morocco: new SME support scheme for Investment est apparu en premier sur Advaloria®Invest.