COVID-19 Impact: 28% of Moroccan Businesses Halted Operations in 2021

As part of its program to monitor and assess the socio-economic impact of the health crisis in Morocco, the HCP has unveiled the results of its fourth qualitative survey of Moroccan companies conducted last January. 2,300 companies representing all units operating in the manufacturing, construction, energy, mining, fishing, trade and non-financial market services sectors were approached.

During this period, 28% of companies in Morocco stopped their activity for an average duration of 143 days in 2021. This suspension, it is specified, was slightly longer for 30% of Very Small Enterprises (VSEs), with an average period of 158 days of shutdown, compared to 116 days for 27% of Small and Medium Enterprises (SMEs) and 107 days for 14% of Large Enterprises (LEs).

By category, companies operating in education and human health (94%), energy (84%) and trade (83%) have continuously carried out their activity without interruption in 2021. Conversely, companies in the accommodation (52%), arts, entertainment and recreation (49%) and construction (37%) sectors have stopped their activity for an average period of 250, 186 and 169 days respectively.

Similarly, more than half of the companies suffered a drop in their liquidity in 2021. This share is 54% for VSEs, 51% for SMEs and 43% for LEs. The most affected sectors are accommodation (98%) and restaurants and arts, entertainment and recreation (88%).

According to the data, nearly 60% of companies that have experienced a slowdown in activity expect to regain their normal level of activity within an average of one year or more. By category, more than half of the Large Enterprises (LEs) (56%) estimate that they can regain their normal pace within a period not exceeding one year, compared to 39% for Very Small and Medium Enterprises (VSMEs).

Regarding investment prospects, nearly 29% of the companies surveyed by the HCP plan to carry out investment projects in 2022 and 13% of the companies anticipate an increase in their investment level, 12% plan to remain stable and 3% foresee a decrease.