A Deep-Dive into How FONZID II Cultivates Sustainable Development

Context: Morocco's Industrial Ambition Meets Global Sustainability Demands

Morocco, under its ambitious Vision 2030, is rapidly transforming into a leading industrial and investment hub, particularly seeking to diversify its economy and integrate into global value chains. A critical component of this vision is the development of robust, attractive industrial infrastructure. However, in an era of increasing environmental consciousness and regulatory demands, simply building more industrial parks is no longer enough. The challenge for Morocco was to create a framework that not only facilitated industrial growth but also ensured this growth was sustainable, inclusive and competitive, meeting modern environmental and social standards.  

The Challenge: Bridging the Gap in Quality & Sustainability of Industrial Land

Prior to initiatives like FONZID II, a key hurdle for attracting high-value investment and fostering a truly competitive industrial sector was the limited availability of industrial zones meeting international sustainability benchmarks. Developers faced significant upfront costs in incorporating green infrastructure, resource efficiency measures and smart technologies. Without a dedicated mechanism to incentivise and co-finance these features, the pace of developing genuinely sustainable industrial parks would remain slow, potentially hindering Morocco's industrial ambitions and its commitment to a greener economy.

The Solution: FONZID II – A Strategic Investment in Sustainable Industrial Infrastructure

To directly address this challenge, the Moroccan Ministry of Industry and Trade launched the Sustainable Industrial Zones Fund (FONZID II). Building on the successes of its first iteration, FONZID II is a dedicated financial mechanism designed to:  

• Incentivise Sustainable Development: Co-finance the creation, expansion and upgrading of industrial zones to meet stringent sustainable, inclusive and competitive standards. 
• Enhance Attractiveness: Make Moroccan industrial land more appealing to both local and international investors seeking environmentally responsible operating environments.
• Promote Green Industry: Foster the growth of industries committed to resource efficiency, reduced environmental footprint and social responsibility.

FONZID II provides crucial financial support, covering up to 50% of the total project cost, with specific caps (for example up to MAD30 million for new or expanded zones and MAD20 million for rehabilitation projects), making sustainable development financially viable for developers.  

Implementation & Recent Catalytic Initiatives

In May 2025, FONZID II marked a significant milestone with the signing of partnership agreements for eight new projects. These initiatives, selected for their commitment to sustainable practices, represent a substantial push towards Morocco's green industrial future.  

• Total Investment: These eight projects collectively represent an investment of nearly MAD989 million (approx. $99 million).
• FONZID II Contribution: The Fund is directly contributing MAD138 million (approx. $13.8 million) to these projects, demonstrating tangible government support.
• Diverse Project Scope: The selected projects cover a broad range of initiatives, including:
  • The creation of entirely new industrial zones in areas like Oued Zem and Ameur.  
  • The development of sustainable industrial parks in locations such as Taroudant and Mohammedia.  
  • The upgrading and renovation of existing industrial zones (for example Ait Melloul and Ain Chkef).  
  • The transformation of existing zones into "green zones" (for example in Tangier-Tetouan-Al Hoceima).  
  • The establishment of specialised areas like a "Fertiparc" in Khouribga, focusing on specific industrial clusters.
• High-Level Support: The presence of the Minister of Industry and Trade, Ryad Mezzour, at the signing ceremony underscored the government's strong commitment and strategic vision for these developments. At the ceremony, Minister Mezzour was quoted saying: “The signed agreements strengthen our pursuit of developing an innovative model of sustainable industrial zones.” 

[Courtesy of Morocco World News: https://www.moroccoworldnews.com/2025/05/204107/morocco-signs-deals-for-eight-new-sustainable-industrial-projects/]

What Outcomes Can We Expect to See?

The implementation of these FONZID II projects is set to deliver multifaceted benefits, including:

• Increased Supply of High-Quality Land

A greater availability of modern, sustainably designed industrial plots will meet growing investor demand.

• Enhanced Investment Attraction

By reducing the cost burden of sustainable infrastructure, FONZID II makes Morocco a more attractive destination for environmentally conscious foreign and domestic investment.

• Improved Business Performance

Businesses operating in these zones will benefit from better infrastructure, resource efficiency, and a more conducive environment for economic, social, and environmental performance.

• Sustainable Job Creation

The development and subsequent operation of these zones are expected to generate significant, sustainable employment opportunities.

• Regional Leadership

These initiatives further solidify Morocco's position as a pioneering leader in sustainable industrial development within the region, setting a benchmark for other African nations.

Etching the Blueprint for a Green & Competitive Industrial Future

FONZID II is more than just a financing mechanism; it is a strategic blueprint for Morocco's green industrial transformation. By directly addressing the need for high-quality, sustainable industrial infrastructure, the Fund is not only stimulating economic growth and attracting investment but also ensuring that this progress is aligned with global sustainability imperatives. The recent launch of eight new projects is a clear testament to Morocco's unwavering commitment to building a competitive, resilient, and environmentally responsible industrial sector that will serve as a cornerstone of its Vision 2030.