This article was automatically translated from HIBAPRESS, the Arabic version:
This article was automatically translated from HIBAPRESS, the Arabic version:
Heba Press-Abdel Latif Baraka
In her speech before the Council of Advisors, Chancellor Lubna Al-Alawi spoke of the economic challenges facing Moroccan companies at the moment, highlighting the worrying expectations regarding the bankruptcy of 16,000 companies during the year 2024. Al-Alawi indicated that these expectations come against the backdrop of an extremely difficult economic situation, which is further complicated by several local and international factors that have directly affected businesses, especially small and medium-sized businesses, which constitute the backbone of the Moroccan economy.
Economic conditions and associated risks
During his speech, Al-Alawi reviewed a set of official statistics which highlight the scale of the crisis facing Moroccan businesses. According to a report published by the High Commission for Planning, many economic sectors in Morocco have seen a notable decline in their performance, with data showing that the percentage of companies facing financial difficulties increased by 30% in the first half of 2023 by report in the same semester. period of the previous year.
Regarding future expectations, Al-Alawi confirmed that a study prepared by the General Confederation of Moroccan Enterprises (CGEM) revealed expectations of bankruptcy of 16,000 companies in 2024, due to the accumulation of debts, inflationary pressures and high production costs. These figures represent a significant percentage of small and medium-sized businesses that are having difficulty adapting to the current economic situation. Among the factors contributing to this crisis, Al-Alawi cited the rise in prices of raw materials, particularly energy, which has affected the ability of companies to maintain their financial stability.
The repercussions of the crisis on businesses
Al-Alawi explained that most affected companies are facing liquidity problems, hampering their ability to pay salaries or pay suppliers. According to the report of the National Agency for the Promotion of Small and Medium Enterprises, 45% of small and medium enterprises in Morocco cannot access bank financing or encounter great difficulties in obtaining subsidized loans.
Al-Alawi also pointed out that these conditions lead to a decline in investment in the national economy, which negatively affects employment opportunities. Data from the Ministry of Economy and Finance showed that the youth unemployment rate has reached around 21%, contributing to the exacerbation of the social crisis.
Procedures necessary to maintain businesses
As part of her intervention, Advisor Lubna Al-Alawi called on the government to take urgent measures to reduce burdens on businesses and maintain their financial stability. She highlighted the need to improve access to financing, particularly for small and medium-sized businesses, which are most affected by the current economic situation. Al-Alawi also proposed several solutions, including:
Debt restructuring: the need to offer flexible settlement solutions to businesses facing debt repayment difficulties, including deferring payment or restructuring their loans.
Support affected sectors: allocate direct support programs to the most affected sectors, such as the tourism, transport and traditional industries sectors, which represent a significant part of the national economy.
Strengthen banking facilities: improve access to financing, notably through low-interest loans for small and medium-sized businesses, and pave the way for government programs that support innovation and investment.
Stimulate local and international investments: create an attractive environment for investment, including tax facilities and privileges for sectors that contribute to the creation of employment opportunities.
At the end of her speech, Advisor Lubna Al-Alawi stressed the importance of taking effective measures to protect Moroccan companies from possible bankruptcy. She stressed the need for concerted efforts between the public and private sectors to achieve economic stability enabling businesses to weather the current crisis, noting that confronting these challenges requires coordinated strategies focused on supporting liquidity and stimulating of the national economy.
This intervention is seen as a strong call to the Moroccan government and economic actors to focus on policies that contribute to maintaining strong and sustainable businesses, which helps reduce high bankruptcy rates and achieve economic stability that contributes to sustainable growth in the future.
