- Over 40,000 businesses, mainly SMEs, faced insolvency in 2024, per CMTPME data.
- A proposed 50-month installment plan aims to alleviate debt burdens.
- Contrasting trends show 78,244 new businesses registered in 2024, yet survival rates remain low.
Morocco‘s small and medium enterprises (SMEs) are experiencing a severe crisis, with over 40,000 businesses closing in 2024 due to debt burdens exacerbated by the COVID-19 pandemic. The Moroccan Confederation of SMEs (CMTPME) has criticized current data collection methods for underreporting the scale of the issue, as many micro and individual businesses remain unaccounted for.
In response, CMTPME President Abdellah El Fergui has proposed a 50-month installment plan for settling debts with tax and social security authorities.
Balancing Growth and Survival: Morocco’s SMEs in Crisis
The insolvency of over 40,000 businesses in Morocco highlights a growing economic challenge, primarily for small and medium enterprises (SMEs) struggling with post-pandemic recovery. These closures reflect the long-term effects of disrupted operations and accumulated debt, which have strained the country’s business ecosystem.
A lack of comprehensive data is compounding the problem. The Moroccan Confederation of SMEs (CMTPME) argues that the official statistics fail to represent the full scope, particularly by excluding informal or individually operated businesses. This omission hinders targeted support efforts and makes effective intervention harder.
Efforts to address the crisis have begun. Proposals such as a 50-month installment plan to help SMEs manage their tax and social security obligations aim to provide relief. However, advocacy bodies like the General Confederation of Moroccan Enterprises (CGEM) face criticism for their perceived inaction in defending SME interests in policymaking forums.
Interestingly, entrepreneurial activity has not completely stalled. The creation of 78,244 new businesses in 2024 suggests a silver lining amid the crisis. However, sustaining these new enterprises will require systemic reforms and enhanced support mechanisms to improve survival rates beyond five years.
Morocco’s SME sector stands at a crossroads, needing immediate intervention to avoid further economic disruption. A combination of financial relief and systemic reform is key to fostering resilience and long-term growth.
“Resilience is not about avoiding hardship; it is about thriving through it.” — Unknown
