Morocco risk pressure points from this week

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:

• Anti-Dumping Duties on Egyptian PVC Imports: Morocco confirmed significant dumping of Egyptian PVC, imposing tariffs up to 92.19% to protect domestic producers.

Risk factor: Without anti-dumping duties, the surge in imports would continue to cause serious damage to local producers, including lost market share, declining profitability, and downward pressure on domestic prices.

• Tax Transfer Pricing Probe: Morocco’s tax authority launched extensive audits targeting 11 companies with foreign subsidiaries, requesting additional documents to verify “prix de transfert” used over the past three years and detect suspected manipulation in cross-border transactions.
• A detailed audit has uncovered suspected manipulation in public tenders for solar panels and renewable-energy converters, including tailored bids, non-compliant equipment, and questionable ties between public officials and companies that had previously won similar contracts, leading inspectors to request a freeze on new tenders.

Political stability:

• Ouarzazate Clinic Closure: The Ministry of Health temporarily closed a private clinic in Ouarzazate for failing to comply with architectural plans, internal management procedures, declared expansions, and technical standards necessary to ensure proper patient care, including the unauthorized employment of public-sector doctors.
• A 30-year-old defendant lured a 13-year-old girl near her school in Ain Aouda and sexually assaulted her by force, exploiting her mental disability in exchange for a meager sum of no more than five dirhams.
• Outdoor classes in Settat: A widely shared video showed students at Oulad Aichi School in Settat attending lessons outdoors in freezing temperatures, prompting a child-protection NGO to demand urgent intervention and proper classroom facilities.

Risk Factor: Lack of operational classrooms and basic educational infrastructure violates students’ rights and exposes them to unsafe learning conditions.

• Public Funds Misused by Associations: Morocco’s Ministry of Solidarity launched legal action against 16 social associations for suspected diversion of grants meant for vulnerable groups.

Risk Factor: Mismanagement of public funds undermines support for children, seniors, and other vulnerable people.

Cross-border stability:

• Nitrous Oxide Smuggling: Customs officers at Tanger Med seized 12,500 cylinders hidden in a truck from Spain, enough to fill over 2.5 million balloons.

Risk Factor: large-scale distribution could promote recreational misuse among youth, causing nervous system damage and potentially fatal outcomes.

• Polisario Attack in Mauritania: A four-wheel-drive vehicle linked to the Polisario Front crossed into the Azkola area of Mauritanian territory, where three armed individuals allegedly assaulted gold miners, threatening them with automatic weapons and forcing them to leave the site.

Risk Factor: Without swift intervention, experts warn the area could escalate into an undeclared conflict zone, endangering local residents and threatening broader border stability.

Security:

• Drug Trafficking Network Near Casablanca: Morocco’s BCIJ arrested eight people linked to international drug trafficking using beaches near Casablanca as departure points and seized 16 tons of “chira,” boats, and equipment.

Risk Factor: Maritime trafficking operations threaten public safety and facilitate large-scale drug distribution nationally and internationally