COVID-19: Over half Moroccan enterprises have ceased operations – HCP study

Morocco’s high commission for planning issued bleak figures on the impact of coronavirus, which pushed 142,000 companies to halt activity, forcing 700,000 to temporary or lasting unemployment.

In total, 57% of Moroccan enterprises, mostly small and medium sized have ceased operations. These comprise 135,000 enterprises that closed temporarily and 6,300 that declared bankruptcy, the HCP’s study showed.

The hardly hit companies are 72% very small enterprises, SMEs represented 26% while big enterprises represented 2% of the businesses hit by the coronavirus.

Hotels and restaurants were the most at pain with 89% of total businesses operating in the sector followed by textile and leather producers with 76%, it said.

The crisis pushed 726,000 workers and employees to stop activity mostly in SMES, which represents 20% of the conventional work force, the study shows.

Morocco has responded to the crisis with a lifeline to businesses hit by the virus offering tax and loan deferral as well as compensations to workers of the private and informal sector to ease their suffering.