Risk Watch #October 21-26: Anti-competitive practices, fraud and polarizing legislation

Welcome to this week’s edition of our Weekly Risk Watch, offering insights into economic indicators, political shifts, and security updates that could impact your business or daily life, all in one concise package.

Economy and Markets:

• Inspectors from the Competition Council visited Glovo’s headquarters in Casablanca following a complaint from rival company Ora, which alleges that Glovo is engaging in anti-competitive practices by imposing restrictive conditions on restaurants in the fast-food delivery industry.
• In response to the Moroccan Ministry of Trade and Industry’s anti-dumping investigation into steel imports, Egyptian steel exporters warned that they may demand tariffs on Moroccan car exports if duties are imposed on their steel products.
• The Moroccan government’s Finance Bill 2025 emphasizes increasing tax resources and public spending, aiming to reduce the budget deficit to 3.5% of GDP while projecting a 14.49% rise in total revenues to 657.8 billion MAD, primarily through enhanced domestic consumption taxes on alcohol, beer, and manufactured tobacco,  with expected tax revenues from alcohol at 1.19 billion MAD, beer at 1.55 billion MAD, and manufactured tobacco at 13.7 billion MAD, totaling 16.44 billion MAD in 2025.
• Numerous irregularities have led the General Inspectorate of Territorial Administration to extend its investigation in Berrechid for an additional month, focusing on issues related to commercial licenses and temporary worker compensation, which have resulted in significant tax revenue losses for the commune.

Political Stability:

• The Criminal Chamber of Rabat sentenced a government official to six years in prison for corruption related to manipulating pilgrimage lists funded by the Ministry of Houbous for visually impaired individuals, resulting in financial fraud and the exclusion of approved pilgrims in exchange for money.
• The National Health Union, part of the Moroccan Labour Union, announced plans for a series of protests and a nationwide strike on October 30 in response to the draft Finance Law for 2025, which health workers claim undermines recent government commitments regarding wages and public employee status, while also addressing serious concerns over the centralization of salaries and the rights of workers in the health sector.
• The General Inspection of Territorial Administration is requesting detailed information from the national highway company to investigate misuse of the “JAWAZ” toll system by state employees who are using state vehicles for personal purposes outside of work hours, as part of an ongoing investigation into irregularities in the management of state vehicle fleets in public facilities.
• After the Moroccan Labor Union’s protest over the government’s unilateral push to discuss the strike regulation bill in Parliament without prior consensus, an official delay was announced for the October 23 committee meeting intended for detailed review, with the Minister of Economic Integration promising expanded consultations with all unions.
• Union leaders criticize the government for bypassing September’s social dialogue, despite promising 20 billion MAD for commitments in the 2025 Finance Bill, and view the passage of a strike law without consultation as a provocative breach of the April agreement.
• The National Social Security Fund (CNSS) has warned citizens about fraudulent calls from scammers posing as fund representatives, asking for personal and banking information under the pretense of providing monthly compensation, which has led to thefts from victims’ accounts.
• Hundreds of judicial commissioners protested on October 21 outside the Ministry of Justice in Rabat, expressing their rejection of provisions in the recently approved draft laws 46.21 on the organization of the profession and the civil procedure, while continuing their strike to demand independence and an end to exclusion from the profession.
• The Coordinating Committee of contracted nurses in the Beni Mellal-Khenifra region announced an open sit-in in front of the regional headquarters to protest their deteriorating social conditions following the termination of their contracts with the Ahmed Hanseali Association for Development.
• Mohammed Amhidia, the governor of the Casablanca-Settat region, expressed frustration to his advisors over delays in addressing the illegal expansion of warehouses, particularly regarding the rising incidents of public electricity theft for illegal factory operations, prompting him to mobilize local officials for a coordinated monitoring campaign.

Cross-border stability:

• Rising geopolitical tensions, particularly in the Middle East, are boosting gold demand, pushing prices close to $3,000, while in Morocco, a recent boycott by the Federation of Jewelers successfully lowered prices by 50 to 60 MAD per gram as they await government action to simplify import regulations.

Security:

• Minister of Foreign Affairs Nasser Bourita called for accountability regarding UN envoy De Mistura’s proposal for a partition plan for the Sahara, presented during his April visit to Morocco, firmly rejecting it as an outdated notion that contradicts Morocco’s stance on territorial integrity and emphasizing that the Moroccan Sahara is non-negotiable.
• A senior EU official told Le Point that the European Court of Justice’s decision to invalidate agriculture and fisheries agreements with Morocco is “an abuse of power,” adding that the court is attempting to change the EU’s official position on a foreign policy matter through a single case, amid growing pressure from the European Commission to find a solution for the affected fishermen.
• UN Secretary-General Antonio Guterres expressed regret over the stalled progress in the political process concerning the Moroccan Sahara, attributing it mainly to Algeria’s refusal to assume its responsibility and role as a primary party in the dispute.