A surge in business closures is gripping Morocco, with a staggering 7,659 companies on the brink of bankruptcy in the first half of this year alone, according to financial data provider Inforisk.
This represents a 14% increase compared to the same period last year, and small businesses are disproportionately affected, accounting for 99.3% of bankruptcies.
Over 14,000 Moroccan companies collapsed last year, and Inforisk predicts this figure will climb to 16,000 by the end of 2024.
Experts attribute this crisis to a complex interplay of factors, including limited access to bank financing, delayed payments from larger companies, and a challenging economic climate.
Small and medium-sized enterprises (SMEs), the backbone of the Moroccan economy, are particularly vulnerable, as several of which fail within three years of launch due to factors such as declining consumer spending, limited government contracts, and high interest rates.
Mohamed Jadri, an economic analyst, warns that the number of bankruptcies could double by year’s end and emphasized the need for tailored support for SMEs, including tax relief and easier access to credit.
Youssef El Karoui El Filali, head of the Moroccan Center for Governance and Management, points to delayed payments from larger companies as a key factor and called for stricter enforcement of payment deadlines and increased opportunities for SMEs to win government contracts.
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