Welcome to this week’s edition of our Weekly Risk Watch, offering insights into the economic, political, and security updates that could have significant implications for your business or daily life.
Economy and market:
- Investment Fund Exclusion: The Moroccan Confederation of Small and Medium Enterprises said the government’s new investment support fund, with a MAD 1 million minimum investment requirement, excludes around 99% of the smallest firms, which cannot meet the threshold or access bank loans.
Risk Factor: This could deepen frustration among small business owners, reinforce their sense of exclusion, and trigger a nationwide protest movement if the situation continues.
- Guelmim Camel Market Strain: Morocco’s largest camel market in Guelmim is under pressure as drought reduces pasture, raising feed costs, and forcing breeders to hire scarce, expensive labor.
Risk Factor: Rising costs and shrinking supply could disrupt trade and livelihoods in the camel market.
- Fuel Price: Fuel companies did not fully pass international price drops to consumers, keeping roughly half of the reduction and earning an estimated MAD 898 million in extra margins during Q2 2025.
- Tax evasion: Moroccan tax and customs authorities are auditing 13 companies in Tangier and Casablanca, accused of diverting imported goods to hidden warehouses and selling them on the black market outside official invoicing systems to evade taxes.
Risk Factor: Widespread tax evasion and illegal trade are causing losses in state revenue and undermining market transparency.
- Temporary Duty Exemptions Misused: Morocco’s national customs investigations unit is probing over 253 companies suspected of reselling raw materials imported under temporary duty exemptions instead of exporting them, with goods under review valued at over MAD 227 million.
Risk Factor: This could trigger complaints from affected industry associations about unfair competition and unlawful use of duty-free import schemes.
Political stability:
- Kenitra Air Pollution: An environmental group, Oxygène, petitioned Kenitra’s city council to tackle worsening air quality caused by landfill emissions, industrial pollution, and waste mismanagement.
Risk Factor: This could worsen health risks for residents and increase public grievances.
- Sexual Violence Against Disabled Women: A Moroccan women’s rights organisation called for an urgent judicial investigation after a young woman with a cognitive disability near Beni Mellal was reportedly sexually assaulted, resulting in pregnancy.
Risk Factor: This could expose gaps in protection, especially since similar cases in rural areas often proceed without transparent investigations, reinforcing impunity.
- Water Losses in Sidi Kacem: A Moroccan rights group warned that uncontrolled discharge at three natural springs is wasting water amid declining local resources.
Risk Factor: Unmanaged spring outflows could worsen shortages and harm the ecological balance in the area.
- Tram Newborn Death: A newborn died after the mother was denied admission at Moulay Abdellah Hospital in Sale amid staff shortages and routine intake restrictions.
Risk Factor: Limited obstetric staff and restricted hospital intake capacity could endanger maternal and newborn safety.
Cross-border stability:
- Euro-Smuggling Network: Morocco’s Financial Intelligence Authority is investigating a suspected network moving euros between Morocco, Italy, and France, with suspicious transfers totaling roughly MAD 13 million.
Risk Factor: Irregular fund flows and use of third-party accounts could indicate links to money laundering and criminal activity, including narcotics trafficking
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