With the effective establishment of the African Continental Free Trade Area (AfCFTA), trade between Morocco and Africa, which currently account for 5.4% of commercial transactions, could triple over time, according to the Moroccan Center of conjuncture (CMC).
The launch of the AfCFTA is the result of long negotiations reflecting the desire to work towards the integration of the continent’s economic space, says the CMC in issue 315 of its monthly publication “Morocco Conjoncture” devoted to issues and risks Moroccan companies.
Morocco, through the many initiatives aimed at its sub-Saharan neighborhood, has been very early on in this new dynamic and is hoping to see the emergence, on the continent, of new poles of growth and prosperity, profitable for all the countries of the continent, says the same source.
The establishment of this zone will contribute to the consolidation of the competitive advantages with the possibility of penetrating the African markets at competitive prices because of the elimination of the customs barriers, but also of the less expensive supply of raw materials, estimates the CMC.
In addition, this publication looks at the World Bank’s Doing Business 2019 rankings, where Morocco improved its rank substantially, gaining 9 places at once to climb to 60th place with a score of 71.02.
On another axis, the CMC stresses that the decisive lever to support the development of private non-financial corporations, credits, seems to be experiencing some difficulties in recent years.
Loans granted by banks to these entities have evolved very modestly in 2018, he notes, stating that their growth rate was barely 0.5% compared to 2017.
The weakness of the dynamics of loans for equipment and real estate is the main cause of this situation because of their respective weight in the credits granted by the banks to Moroccan private companies, which are still predominant in the accounts of receivables and cash loans, notes the CMC.
Meanwhile, “Morocco Conjoncture” addresses the issue of late payments, one of the major problems that require a mobilization of business and government to protect companies against the negative impact of longer payment terms.