This paper examines the determinants and potential of Morocco’s outward FDI stock in 25 African countries over 2010–2022. Using an augmented gravity framework, it assesses how macroeconomic conditions, institutional quality, and relational proximity shape South–South investment patterns. Results diverge from standard gravity expectations: neither Morocco’s GDP nor host–country GDP is significant, while geographical distance is positively associated with outward FDI. High–level visits, political stability, and a shared language emerge as key drivers. A model–based benchmark identifies destinations where Morocco’s investment presence remains below model–implied levels, informing development–oriented investment prioritisation. This is a preprint version of the manuscript intended for submission to a peer-reviewed journal.
Tanane et al. (Wed,) studied this question.