Morocco Building Commercial & Financial Hub Linking Africa & Europe (U.S. Consulting Firm)
Morocco is busy working to establish itself as a commercial and financial hub linking Africa and Europe, says American Consulting firm Kearney in its latest “Global Retail Development Index” report.
Morocco’s economy is on the path to recovery, supported by an uptick in household consumption, export demand, and governmental policies, adds the GRDI research report shedding light on the post-covid global retail markets’ growth potential.
After contracting by about 6 percent in 2020, the Moroccan economy is expecting a growth of 5.3 percent this year. Inflation is expected to average 1.1 percent this year compared with 0.6 percent in 2020, says the document.
There’s an uptick in agricultural activity, a vital sector, although one with significant monsoon vulnerability, fueled by fiscal and monetary policies supporting private consumption, underlines the 2021 GRDI report.
Morocco is using business-favorable policies to attract foreign and private sector investments, says the document, noting that retail sales in the country account for 12 percent of the annual GDP and retail employment represents 12.8 percent of total employment—about 1.2 million people
Traditional retailing still dominates the Moroccan market despite the presence of a few modern chain retailers. The market’s relative under penetration offers significant upside possibilities for domestic chains and international retailers, affirm the experts of the American consulting firm.
They say that the rise of e-commerce, expected to see about 16 percent growth through 2025, has triggered brick-and-mortar retailers to scale up their digital capabilities.
Morocco has a high Internet penetration rate of about 75 percent and offers the best 4G availability in North Africa. This is likely to boost the e-commerce sector, according to Kearney forecast.
Driven by rising smartphone use, mobile commerce in Morocco is experiencing higher growth than the overall e-commerce market, says the report, affirming that apparel and clothing e-purchasing remains the top consumer preference followed by electronics.