Moroccan SME group urges loan freezes, tax relief for flood-hit businesses

Moroccan SME group urges loan freezes, tax relief for flood-hit businesses
AFP
Sunday 15 February 2026 - 18:00

A Moroccan confederation representing small and medium-sized businesses on Tuesday urged authorities to freeze loan repayments and grant tax relief to firms hit by recent floods, warning that mounting losses threaten jobs and local economic stability in several northern regions.

In a statement, the Moroccan Confederation of Very Small, Small and Medium Enterprises called on the government to suspend banking, tax and social security obligations for affected companies without penalties, and to expand emergency compensation funds to help businesses resume operations.

The group said rapid financial intervention is needed to prevent bankruptcies among micro, small and medium-sized enterprises, which it described as the backbone of local economies.

Flooding in cities and provinces including Ksar El Kebir, Larache, Kenitra, Sidi Kacem, Sidi Slimane and Chefchaouen caused widespread material and economic damage, the confederation said. Losses have affected traders, artisans, traditional craftspeople, small farmers, artisanal fishers, cooperatives and other income-generating activities, putting thousands of households at risk.

The organization said it has received numerous requests from affected entrepreneurs seeking clarification on their obligations to banks and administrative bodies, as well as information on available assistance to restart operations.

It urged authorities to formally declare the affected areas disaster zones to activate compensation mechanisms, particularly for insured firms, and to speed up support for businesses without coverage.

The confederation also called for exceptional programs to rehabilitate damaged production units and protect employment, along with faster damage assessments and simplified, transparent procedures for accessing aid.

In Ksar El Kebir, one of the hardest-hit areas, evacuations and power outages disrupted commercial activity, the group said. Many small businesses reported damage to inventories and equipment caused by floodwaters and mud, compounding losses and delaying recovery.

Protecting small enterprises is critical to safeguarding economic and social stability, the confederation said, noting that the local economic fabric in the affected provinces is overwhelmingly composed of micro, small and medium-sized firms.

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