North Africa emerges as key investment destination for greenhouses in 2025

NORTH AFRICA – North Africa is becoming one of the most promising regions for greenhouse investments, ranking second worldwide after the Persian Gulf.

A recent report by Dutch banking group Rabobank, published on February 24, highlights that North Africa is gaining significant attention from industry stakeholders, including seed suppliers, consulting firms, and greenhouse technology providers.

The survey respondents identified the region as a leading destination for commercial greenhouse investments, surpassing markets such as the United States, Canada, the Netherlands, and Belgium.

North Africa’s rise in the greenhouse sector is driven by its favorable climate and growing export demand for horticultural products. According to Rabobank, the region’s attractiveness has increased compared to 2024, standing out in an otherwise uncertain global market in 2025.

Morocco, Tunisia, and Algeria are at the forefront of this trend, with Morocco playing a leading role. In the country, greenhouse farming is primarily used for horticulture, with tomatoes being the dominant crop. “Tomatoes have benefited from the growing demand from destinations around the Mediterranean such as France,” the report states.

Moroccan greenhouse investments are largely focused on cost-effective structures modeled after those developed in the Canary Islands. These greenhouses support the production of early vegetables in regions such as Souss-Massa, where crops are grown from October to June.

Although tomatoes remain the primary greenhouse crop in Morocco, Rabobank notes that other crops, such as cucumbers and chili peppers, are also expanding their market share.

These crops are becoming increasingly competitive in the European Union and the United Kingdom. In 2023, the cost, insurance, and freight (CIF) price per kilogram of Moroccan cucumbers in the UK was $1.45/kg, a more competitive rate than Spain’s US$1.79/kg.

Similarly, chili pepper exports from Morocco have grown by an average of 6% annually over the past decade, with Spain as the primary market.

Despite the strong growth outlook, Rabobank warns that challenges remain. “Disease risks, water availability, and extreme weather events such as heat waves will remain challenges for the Moroccan greenhouse industry,” the report states.

The bank also emphasizes the need for sustainable farming practices and improved climate and disease risk management to ensure long-term success in the sector..

Greenhouse farming plays a vital role in Africa’s agricultural sector, addressing challenges such as climate variability, water scarcity, and pest control.

Greenhouse farming in Africa

The method is widely used for cultivating vegetables, fruits, and flowers in controlled environments, helping to boost food security and increase agricultural productivity.

Africa had approximately 68,500 hectares of greenhouse farmland in 2024, accounting for less than 2% of the global total. By contrast, China remains the global leader, with greenhouse farming covering between 1 and 3.5 million hectares.

Greenhouses contribute significantly to the fresh produce market, which is experiencing steady growth. The fresh fruits sector is projected to expand at a compound annual growth rate (CAGR) of 3.6%, reaching US$757.7 billion by 2030.

Meanwhile, the fresh vegetables market is expected to grow at a CAGR of 3.3%, reaching US$895.2 billion by 2032.

This investment surge in greenhouse farming is expected to help reduce reliance on imports by ensuring year-round production and higher yields.

Rabobank’s report s that while North Africa is gaining momentum, sustainability and risk management will be crucial in maintaining its competitiveness in the global greenhouse industry.

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