Morocco’s Network Marketing Sector Faces Job Losses Amid Rising Import Duties

In less than a year, the import duties on many finished products have recorded two successive increases. This has had a negative impact on the majority of major brands affiliated with the Moroccan Federation of Network Marketing, which brings together 500 brands and 2,000 points of sale.

"The increase in import duties significantly increases our cost prices. While most members had chosen to absorb the first increase or postpone it to spare the consumer, they are now forced to pass on the second increase significantly, by 10% or more," explains Hamza Bernoussi, vice-treasurer and representative of Bricoma within the Federation, to L’Économiste.

The increase in import duties was introduced by the 2020 Finance Act before being readjusted by the Amending Finance Act. The objective is to protect "Made in Morocco" and generate additional tax revenue. However, this increase has impacted the sector. "We have found that the basket value has dropped by an average of 15 to 20% due to the increase in import duties. The same situation prevails with almost all members of the Federation," says Mr. Bernoussi.

The drop in turnover therefore threatens thousands of jobs in a sector that employs around 1.5 million people. "According to the first estimates of the associations affiliated with the Federation, job losses due to the drop in activity could reach 15%, or several tens of thousands," it is predicted.