Morocco - Market Challenges (2024)

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Morocco - Market Challenges? ›

Morocco - Market Challenges. The greatest barriers to doing business in Morocco include lack of transparency in government procurement, slow bureaucratic decision-making and procedures, and restrictions on pre-payments for imports prior to delivery. Companies often complain about delays in receiving government payments ...

Throughout the past two decades, Morocco has faced several external and domestic shocks, including large swings in international oil prices, regional geopolitical tensions, severe droughts, and most recently the impact of the pandemic and the economic fallout from Russia's invasion of Ukraine.

U.S. firms report that among the greatest obstacles to trade and investment in Morocco are irregularities in government procedures, including lack of efficient and transparent processes for obtaining government permits, land-use approvals, and other government permissions.

Companies often complain about delays in receiving government payments. The legal and banking systems in Morocco differ in many ways from U.S. systems. The legal system is based on a combination of French, Spanish, and Islamic laws, and can be complex for U.S. companies to navigate.

The economy of Morocco is considered a relatively liberal economy, governed by the law of supply and demand. Since 1993, in line with many Western world changes, Morocco has followed a policy of privatisation of certain economic sectors which used to be in the hands of the government.

The war in Ukraine, combined with the reordering of global supply chains, have triggered, as in much of the world, a surge in prices, with Moroccan annual inflation peaking at 8.3% towards the end of 2022.

Real GDP grew 1.1% in 2022, down from the buoyant recovery of 2021 (7.9%). Agricultural value added fell 15% from 2021 due to the worst drought of the past 40 years. Manufacturing, tourism, and transport performed well.

Another widely used measure of inequality is the ratio of income derived by the top 20% and that derived by the bottom 20%. This measure broadly confirms Morocco's high inequality. As Chart 10 shows, Morocco's ratio is, at 7.4, far higher than Egypt's 4.6, but bears no resemblance to South Africa's 28.4.

Morocco - Level 2: Exercise Increased Caution

Exercise increased caution in Morocco due to terrorism. Country Summary: Terrorist groups continue plotting possible attacks in Morocco.

What does Morocco trade the most? ›

The three leading exports are agricultural produce (citrus fruits and market vegetables), semiprocessed goods and consumer goods (including textiles), and phosphates and phosphate products.

Phosphates and textiles are central to Morocco's export industry. Other exports items include electric components, inorganic chemicals, transistors, citrus fruits, vegetables, fish. Morocco main exports partners are European Union countries with Spain, France and Italy being the most important.

Prohibited goods : The importation of the following goods is prohibited : - arms and ammunition, - narcotic drugs, - writings, printed documents, recorded cassettes and video-cassettes and all items contrary to morality and public order.

Morocco has a well educated and flexible workforce, business friendly laws and regulations, a stable political environment and infrastructures that support trade and the efficient movement of goods.

Is it easy to do business in Morocco? The requirements to operate a company as a foreigner often differ from the requirements for Moroccans. This usually involves certain business documents and rules that are not required for locals. One of the major differences is related to accounting.

COMPETITIVE ENVIRONMENT:Morocco is an extremely competitive environment, and businesses that are able to stay ahead of the competition will be successful. The climate is mild and humid, which makes it ideal for growing crops and manufacturing products.

In this context, real GDP growth fell from 8 % in 2021 to 1.3 % in 2022. As the effects of these shocks fade away, growth is accelerating in 2023, supported by the partial recovery of agricultural production, the rebound of the tourism sector, and the positive contribution of net exports.

Economic growth:

The economy recorded average annual growth of 2.6% in the decade to 2022. To read more about GDP growth in Morocco, go to our dedicated page.

Morocco has made remarkable progress in reducing poverty over the past decade. Today, less than 9% of the Moroccan population qualifies as “poor” compared to 16.2% a decade ago. This is a notable achievement for a country of 32 million people that lacks significant natural resources.