Morocco's Business Landscape Faces Critical Challenge as 40,000 Companies Face Closure in 2024

The Moroccan business sector is experiencing significant turbulence as an estimated 40,000 businesses are expected to close their doors by the end of 2024, according to recent reports from the Moroccan Confederation of SMEs (CMTPME). This dramatic increase in business closures highlights the ongoing challenges facing the nation's economic landscape since the COVID-19 pandemic.

Abdellah El Fergui, president of CMTPME, revealed that the first half of 2024 alone saw over 20,000 individual and corporate businesses become insolvent. The situation appears particularly dire as these numbers are projected to double by year's end, marking a critical turning point for Morocco's business ecosystem.

The confederation's findings challenge earlier statistics presented by the Moroccan Observatory of Micro, Small, and Medium Enterprises (MSMEs). El Fergui pointed out a significant gap in the observatory's data collection, noting that their figures exclude very small businesses operated by individuals, presenting an incomplete picture of the crisis.

In response to this mounting crisis, El Fergui engaged in high-level discussions with Minister of Economy and Finance Nadia Fettah on December 9. During these talks, he proposed a 50-month installment payment plan to help struggling businesses manage their obligations to both the General Tax Administration (DGI) and the National Social Security Fund (CNSS).

The CMTPME president also expressed criticism toward the General Confederation of Moroccan Enterprises (CGEM), suggesting the organization has failed to adequately advocate for small and medium-sized enterprises, particularly in parliamentary discussions.

Despite these challenges, there are some positive indicators in Morocco's business landscape. The Moroccan Office of Industrial and Commercial Property (OMPIC) reported the creation of 78,244 new businesses in the first ten months of 2024, suggesting continued entrepreneurial activity despite the difficult economic climate.

However, these developments occur against a backdrop of rising unemployment, which reached 13.7% in the first quarter of 2024—a 0.8% increase from the previous year. A joint report from the World Bank and the Moroccan Observatory of MSMEs provides additional context, indicating a 53% business survival rate after five years of operation.

El Fergui warns that without immediate intervention to address the debt burden accumulated during the pandemic, business closures could accelerate further, potentially devastating hundreds of thousands of small and medium enterprises across Morocco.