Morocco’s Leather Industry Struggles as COVID-19 Leads to Mass Layoffs

Nearly 10,000 employees in the leather sector are currently on temporary layoff, even if not all companies in the sector are at a standstill. The tanning, footwear, leather goods and clothing branches are seriously impacted by the effects of the coronavirus, informs L’Economiste.

According to Hamid Ben Rhidoa, president of the Federation of Leather Industries, the situation is tense for the leather ecosystems. In an interview with the newspaper, he stated that orders and supplies are very scarce. The drop in domestic and foreign demand has led to declines in products intended for local and international consumption, he said. The shutdown of many raw material suppliers has also contributed to the current situation in the sector.

The resumption of activities of the industrial units in the kingdom affected by Covid-19 depends on the recovery of industrial and commercial activities in countries like Italy, China and Spain. It is imperative that the latter see an improvement in the health situation. Companies in the sector need financial support to cope with the situation and also for the relaunch. This is why leather professionals are asking banks to present the various schemes related to access to government aid.