Morocco’s informal sector expands to 2 million production units

Morocco’s informal sector has grown to approximately 2.03 million informal production units (IPUs) in 2023, an increase of 353,000 units since 2014, according to the National Survey on Informal Production Units published Wednesday by the High Commission for Planning (HCP).

The expansion has been predominantly urban, with 77.3% of IPUs located in cities. The Casablanca-Settat region alone accounts for 22.7% of all informal units. Commerce remains the dominant activity at 47%, though its share has declined as services (28.3%) and construction (11.6%) sectors have grown proportionally.

The survey reveals that informal businesses remain overwhelmingly small-scale, with 85.5% consisting of single-person operations. More than half (55.3%) operate without fixed professional premises, while 4.6% work from home. The construction sector shows the highest rate of mobile operations at 90.2%, with most activities conducted at client locations.

Infrastructure access varies significantly across the sector. While 94% of units with fixed premises have electricity, only 46% have running water, 43% have sanitation facilities, and 41% have internet access. Larger units employing four or more people enjoy better infrastructure access compared to single-person operations.

Administrative registration remains limited despite some improvements. Only 14.2% of IPUs are registered for professional tax, 9.8% are affiliated with the National Social Security Fund, 7.5% hold commercial registry status, and merely 1.7% benefit from auto-entrepreneur status.

Female leadership in informal businesses has declined from 8.8% in 2014 to 7.6% in 2023, though women maintain a relatively stronger presence in the industrial sector at 20.9%. The average age of IPU managers has increased from 42.5 to 45 years, while educational levels have improved, with those lacking formal education dropping from 34.3% to 18.6%.