info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
Image from Moroccoworldnews
Morocco has been ranked 22nd globally and 2nd in Africa in the 2024 Agility Emerging Markets Logistics Index, an annual survey and ranking of the world’s 50 leading emerging markets. The Index, now in its 15th year, assesses countries for their overall competitiveness based on logistics strengths, business climate, and digital readiness.
Within Africa, Morocco is surpassed by Egypt (20), while outperforming regional peers such as South Africa (24), Kenya (25), Ghana (31), Nigeria (36), Tanzania (41), Uganda (43), Ethiopia (45), Mozambique (46), Angola (47), and Libya (50).
According to the index, Morocco has seen a slight decline in its overall ranking, moving down two spots from 20th in 2023 to 22nd in 2024. This can be attributed to lower scores in the Domestic Opportunities sub-index, where Morocco dropped nine places, and the Digital Readiness sub-index, where it gained only one spot compared to the previous year.
The survey of 830 global logistics executives, conducted by Transport Intelligence (Ti), reveals an industry still grappling with the aftermath of the COVID-19 pandemic, geopolitical tensions, and economic uncertainties. In this context, Morocco’s continued strong performance in the Business Fundamentals sub-index, where it ranks 12th globally, highlights the country’s commitment to providing a stable and conducive environment for businesses to operate.
Despite the challenges, Morocco remains an attractive destination for foreign investment in the region. The survey results demonstrate a renewed global interest in Africa, with 47.4% of respondents planning additional investments and 14.2% planning first-time investments in the continent in 2024. This optimistic outlook is underpinned by Morocco’s strategic location, improved business environment, and ongoing efforts to position itself as a regional logistics hub.
In the press release for the report, Tarek Sultan, Vice Chairman of Agility, commented on the findings; “Shippers and carriers are struggling to minimize supply chain risk and find new growth opportunities. Inflation and recession risks have eased, but the industry is still living with the aftershocks of the COVID pandemic. At the same time, businesses are worried about geopolitics — troubled trade relations between China and the U.S. and Europe, and the thicket of sanctions against a growing number of countries.”
The survey also highlights the ongoing restructuring of global supply chains, with 63% of respondents stating that their companies are spreading production to multiple locations or relocating it to home markets and nearby countries. This shift could significantly impact China, the world’s leading producer, as 37.4% of industry professionals plan to move production/sourcing out of China or reduce investment there.
John Manners-Bell, Chief Executive of Ti, also was quoted in the release. “Supply chain managers are still coming to terms with the political and economic instability characterising the post-COVID global economy,” he said. He continued; “Geopolitical relationships are changing rapidly, and this is having a major impact on international trade and risk profiles. Businesses need to be alive to the opportunities and threats that exist in emerging markets and use data, such as that the Agility Emerging Market Logistics Index, to inform agile decision-making.”
Other key findings from the 2024 Agility Emerging Markets Logistics Index reveal that half of the respondents expect a global recession in the coming year, a notable decrease from the nearly 70% who held this view a year ago. Despite the ongoing challenges, shipping and logistics costs are still climbing, albeit at a slower rate compared to the height of the pandemic.
The survey also indicates a significant shift towards digital freight forwarding, with its adoption expected to increase from 37.8% today to 52% in five years. In terms of overall rankings, China and India, the world’s two largest countries, maintain their top positions, while the UAE, Saudi Arabia, and Qatar offer the best emerging markets business conditions.
Notably, 66% of respondents say that climate change is something they are either planning for or is already affecting their businesses, highlighting the growing importance of sustainability in the logistics industry.
The recent decision by Mitsubishi to merge its Tunisian operations with its Casablanca office in Morocco underscores the country’s growing appeal as an investment destination, particularly in the automotive sector. This move is consistent with Morocco’s strong performance in the 2024 index.
Transport Intelligence (Ti), a leading analysis and research firm for the logistics industry, has compiled the Index since it was launched in 2009. Established in 2002, Ti has become the leading provider of market research solutions to the global logistics industry, serving as advisors to the World Economic Forum, World Bank, UN, and European Commission.
