The Moroccan Industrial and Commercial Property Office has stated that the number of companies to be established in the country by 2020 will be more than 84,000. These are distributed as reported between legal entities, which would bring together a total of 54,691, and individuals, which would total 29,115.
The boost for private companies comes from a comprehensive three-year programme launched by the government. The main objective of this programme is to finance small and medium-sized enterprises, as well as to promote and strengthen the private sector in economic growth and the labour market. In total, more than 14,000 projects are envisaged in order to register a total of 27,000 people in the labour market, thus absorbing as many unemployed as possible.
In addition to the classification between legal entities and natural persons, the companies of legal entities show a predominance of the trade sector with 32.51%, construction, public works and real estate with 24.37% and services with 17.07%.
At the beginning of last year, King Mohammed VI of Morocco signalled the launch of the programme. Experts consider it the most enthusiastic project by the hierarchy to support the business climate and improve economic growth levels.
In addition, agreements have been signed to activate the Hassan II Fund for Economic and Social Development in the programme. These are intended to enrich the initiative. Furthermore, it has been jointly developed by the Ministry of Economy, Finance and Administrative Reform, Bank Al-Maghrib and the Professional Group of Moroccan Banks.
The agreements enable the banks to offer new guarantee and financing products for the benefit of very small businesses, young entrepreneurs and rural dwellers.
The Intilaaqah programme included three products distributed under the 'Intilaq Guarantee', which aims to support a large number of entrepreneurs.
Despite the support, funding and facilities, the pandemic caused by COVID-19 has led to the bankruptcy and closure of many businesses. The total number of companies registered as bankrupt in 2020 is 6,612 companies. Even so, this is a positive figure in Morocco, as fewer companies went bankrupt than in 2019. The year 2020 saw a 21.6% decrease in the number of bankrupt companies. Despite 2020 being a year of crisis with distinction, due to the pandemic, Morocco recorded the lowest rates of economic growth. The decrease in the bankruptcy rate was attributed to subsidy measures granted by the state for the benefit of enterprises.
In addition to these measures, Morocco decided in March 2020 to establish a special fund to manage and cope with the virus and help the most affected sectors, such as tourism, to continue. In addition to reducing the social repercussions that this crisis has brought with it.
The Inforisk Research Office expects 2021 to be a year of major crisis and bankruptcy, it reported. Despite efforts on the part of the state, given the backlog of business cases in the courts that have not yet been dealt with, as well as the economic conditions as a result of the pandemic situation, the country is expected to experience adverse circumstances in terms of the economy.