Record-Breaking Wave of Bankruptcies Hits Moroccan Businesses, Trend Expected to Worsen

In Morocco, the number of companies recognized as insolvent continues to soar. In total, 10,552 companies went bankrupt in Morocco in 2021, a spectacular increase of 59% in the number of bankruptcies compared to the previous year. The following year, this upward trend continued, with an increase of 17%, bringing the number of bankruptcies to 12,397. The forecasts for 2023 are worrying: a 15% increase is expected to reach a record number of 14,200 bankruptcies, according to a study by Allianz Trade, cited by Maroc diplomatique.

The increase in defaults is notably due to the impact of containment measures and business closures on the restaurant, transport, wholesale and distribution sectors, as well as inflation. The drastic drop in demand in these sectors, which has consequently led to a drop in revenues, has seriously put companies in difficulty. They had to deal with payment arrears and liquidity problems.

2024 looks rather promising. According to Allianz Trade, a 5% decrease in the number of bankruptcies is expected. This downward trend should continue in 2025, with an additional 5% decrease. However, global bankruptcies are expected to continue to increase by 6% in 2023 and 10% in 2024.