Rabat, Morocco (TMT)- The number of small businesses in Morocco that have gone bankrupt has increased by 28% in the first three months of this year compared to the same period last year.
According to a recent report in L’Economiste newspaper, this is mainly due to high levels of debt and long delays in receiving payment. Small businesses, which make up a significant part of the economy, are struggling to cope with the effects of the Covid-19 pandemic and other challenges.
Nearly all of the bankruptcies (98.8%) were small businesses, with only a small number of medium-sized and large companies being affected.
The worst-hit sectors were trade, real estate, and construction. The city with the most bankruptcies was Casablanca, followed by Rabat, Marrakech, and Fès.
The situation is likely to get worse, with experts predicting a record number of 15,000 bankruptcies by the end of this year, compared to 13,000 predicted by another expert.
The Moroccan Times.
