Casablanca Stock Exchange: Who Will Benefit from the Gharb Mega-Water Project?

The Gharb mega-water project, with its multi-billion dirham investment, is expected to have direct implications for certain stocks on the Casablanca Stock Exchange, particularly in the agricultural sector. Leading the list of potential beneficiaries is CMGP, which was introduced to the market in December 2024. The company has established itself as Morocco's leader in modern irrigation, hydraulic infrastructure, and solar solutions for agriculture. CMGP's portfolio encompasses the entire value chain, including the design, supply, and installation of irrigation networks, pumping stations, filtration, and fertigation systems. Given its technical references, national presence, and experience in large irrigation projects, CMGP is well-positioned to provide equipment and integrate the network for the Gharb project. Investors will closely watch the awarding of contracts, as positive announcements could serve as a short-term bullish catalyst. Stokvis Nord Afrique, a distributor of agricultural and industrial equipment, may also benefit from the project's demand for machinery related to earthworks, transport, and infrastructure maintenance. While its potential impact is less significant than that of CMGP, the project could generate additional orders over several years, enhancing an already diversified order book. The civil engineering aspects of the project, including water supply, pumping stations, concrete structures, and canals, open opportunities for publicly listed major construction firms. TGCC, which specializes in infrastructure and large-scale projects, could engage in heavy construction and hydraulic works. Delta Holding, with its subsidiary Delta Irrigation already active in the field, possesses expertise in drinking water and sanitation networks. It may participate as a co-contractor or subcontractor, particularly in environmental aspects and underground networks. In the short term, the impact on stock prices will depend on contractual visibility; announcements regarding contract awards and the amounts involved will be crucial. CMGP appears to be the stock most directly correlated with the project's progress, while TGCC and Delta Holding would benefit from substantial indirect impacts. Lastly, Stokvis could leverage tangible benefits from the project. Ultimately, this initiative highlights the growing importance of public-private partnerships in Morocco's agricultural infrastructure, a segment that could emerge as a growth driver for several market stocks.