Over 61,000 new companies established in Morocco by August 2024

A total of 61,178 new companies were established in the first eight months of 2024, according to the general dashboard barometer on business creation released by the Moroccan Office of Industrial and Commercial Property (OMPIC). 

The data reveals a diverse range of new businesses, with both corporate entities (44,261) and individual entrepreneurs (16,917) contributing to the overall growth. The trade sector was the most active, accounting for 34.64% of all new companies. 

This was followed closely by construction and public works (19.16%), various services (18.77%), transportation (7.97%), industry (7.32%), hotels and restaurants (5.66%), information and communication technology (2.78%), financial activities (2.09%), agriculture and fishing (1.61%).

Geographically, the Casablanca-Settat region took the lead, with 19,361 new businesses established by the end of August. 

It was followed by Tangier-Tetouan-Al Hoceima (8,741), Marrakech-Safi (7,124), Rabat-Sale-Kenitra (7,035), Fes-Meknes (4,232), Souss-Massa (4,099), the Eastern region (3,578), Laayoune-Sakia El Hamra (2,376), Beni Mellal-Khenifra (1,801), Draa-Tafilalet (1,375), Dakhla-Oued Ed-Dahab (965), and finally, Guelmim-Oued Noun (491).

In terms of legal structure, limited liability companies with a single shareholder dominated, representing 64.9% of all new businesses. Limited liability companies with multiple shareholders followed closely with a 34.5% share.

While Morocco has seen a rise in new businesses, a concerning trend of business closures is also emerging. 

A staggering 7,659 companies were teetering on the brink of bankruptcy in the first half of 2024, a 14% increase from the same period in 2023. 

Small businesses, constituting 99.3% of bankruptcies, are particularly vulnerable. Over 14,000 companies failed in 2023, and this figure is projected to reach 16,000 by the end of 2024, according to financial data provider Inforisk.

Small and medium-sized enterprises (SMEs), the backbone of the Moroccan economy, are particularly vulnerable. 

Many fail within their first three years due to challenges such as declining consumer spending, limited government contracts, and high-interest rates. 

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