Moroccan Minister of Commerce, Industry, and Trade says his ministry will “take action,” to counter force Turkish competition.
In response to interventions from House of Representatives MPs while discussing the ministry’s budget, Minister of Industry and Trade, Ryad Mezzour, said he “understands” the difficult situation experienced by small sellers as a result of competition from “BIM” stores and supermarkets, promising to take measures to protect them.
According to the official, the ministry is “preparing a project to regulate the distribution and internal trade, aimed at protecting small grocery shops from ‘BIM’ stores.”
The Turkish supermarkets have vastly expanded across the country, targeting both affluent and popular middle and lower-income neighborhoods.
The expansion has severely hurt small shop owners in the country, with 573 stores across Morocco, erected in highly populated areas, and has been present for more than 12 years in Morocco.
The government’s plan is not yet clear, and its outlines remain vague. A possible route for the ministry can be the review authorizations given to BIM stores for new locations.
Another solution can be to raise the level of competition of small traders by helping them market their products, through digitizing distribution to expand their offer, suggests the official.
Mezzour, however, pointed out that “small sellers do not try to find solutions when their trade stagnates as a result of competition other than closing their stores and moving to a place away from competition, or transforming the shop into a space to practice another business.”
He explained that the solutions need to help sellers adapt to strong competition and commercial flexibility.
In recent years, the Moroccan government has taken a number of measures aimed at reducing products imported from Turkey, after it became clear that the free trade agreement between the two countries was not in Morocco’s interests.
Back in February 2020, then Minister of Trade and Industry, Moulay Hafid Elalamy, attacked the Turkish retailer, criticizing it for not selling enough Moroccan products. BIM was then summoned by the minister to “sell more Moroccan, or leave.”
Such governmental measures made 65% of products sold by “BIM” stores of Moroccan provenance.
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