Moroccan Businesses Face a Wave of Bankruptcies: A Concerning Trend
Morocco witnessed a surge in business bankruptcies in 2024, with a staggering 15,658 companies going under—an average of 43 closures every single day. This represents a concerning 9.9% increase compared to 2023, and the outlook for 2025 paints an even bleaker picture. InfoRisk, a Moroccan business intelligence firm, projects bankruptcies to climb to 17,530, a further 12% jump. This alarming trend raises questions about the health of the Moroccan economy and the challenges facing its businesses, particularly small and micro enterprises.
A closer look at the 2024 data reveals a fluctuating, yet consistently troubling, pattern. The first quarter saw a dramatic 20% year-over-year increase in bankruptcies. While this slowed to 12% in the second quarter and a mere 1% in the third, the final quarter of the year experienced a renewed surge, with bankruptcies rising by 6%. This volatility underscores the precarious situation many businesses face.
This wave of closures isn’t a sudden phenomenon. The number of bankruptcies has been steadily rising since the COVID-19 pandemic. In 2020, 6,655 businesses declared bankruptcy. This number jumped to 10,556 in 2021 and continued its upward trajectory to 14,245 in 2023, culminating in the record-breaking figures of 2024. This sustained increase suggests deeper systemic issues within the Moroccan business landscape.
One of the primary culprits identified by experts is the pervasive problem of late payments. As businesses struggle with cash flow, clients are increasingly pushing for extended payment terms, putting immense pressure on smaller companies. Studies indicate that late payments contribute to approximately 40% of bankruptcies among small businesses. This echoes global trends, where late payments are a significant factor in business failures. Organizations like the International Trade Centre work to address this issue by promoting best practices in trade finance and access to finance for SMEs.
The impact of this crisis is disproportionately felt by the smallest businesses. Micro-enterprises account for a staggering 99.3% of all bankruptcies in Morocco. Small and medium-sized enterprises (SMEs) represent a further 0.6%, while larger corporations make up a negligible 0.1%. This highlights the vulnerability of smaller businesses in the face of economic headwinds and the urgent need for targeted support.
While late payments are a significant contributing factor, InfoRisk experts emphasize that they are not the sole cause. Internal governance and organizational structure play a crucial role in a company’s ability to weather economic storms. This underscores the need for improved business management practices and strategies that enhance adaptability and resilience in a dynamic market. Resources and training programs focused on financial management, strategic planning, and risk mitigation could be instrumental in helping businesses navigate these challenges.
The rising tide of bankruptcies in Morocco is a serious concern that demands attention. Addressing the root causes, such as late payments and weak internal governance, is crucial for fostering a healthier and more sustainable business environment. Supporting micro and small enterprises, the backbone of the Moroccan economy, will be essential for ensuring long-term economic stability and growth.
