Survey: 40% of Moroccan Businesses Depleted Cash Reserves Amid COVID-19 Crisis

At the end of the survey, classifying companies by category, 25% of large companies (LCs) have reserves to withstand more than 6 months, compared to 14% of small and medium-sized enterprises (SMEs) and 11% of very small enterprises (VSEs). According to the age of the companies, 44% of those under 10 years old have no cash reserves, with 38% of SMEs and 36% of LCs, according to the results of the HCP survey, reported by la Map.

The impacts of the crisis on the cash flow of companies differ by sector of activity. 54% of accommodation-catering business leaders said they no longer have cash reserves and 9% have a reserve of less than one month in H2-2020. In the construction sector, 46% of companies are in the same situation, compared to 12% who have a reserve of less than one month. Conversely, the sectors showing little resistance to the crisis are those of energy and education and human health having a reserve of more than 6 months. In addition, a quarter of business leaders foresee a high risk of insolvency against 32% who do not envisage any risk. Speaking of aid, Morocco has put in place a range of support measures for the economic fabric and to ensure the survival of companies, even if others have not been so lucky, notably due to the complexity of the procedures.

Moreover, the main difficulties encountered by entrepreneurs during H2-2020 mainly concern the weak demand that hinders the normal resumption of activities and financial difficulties, specified the HCP, whose objective of the survey is to assess the evolution of the activity of companies during the period from July to December 2020, to compare it with the evolution of the same period before the crisis, in order to know the level of performance of companies in search of the normal pace of activity.