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Fitch Ratings probes the automotive industry in Morocco

An analysis by the rating agency Fitch Ratings indicates that after the coronavirus crisis, Morocco will succeed in benefiting from the recovery of the automotive sector. The kingdom is said to be at the top of the risk/profitability index developed by the institution, followed by Egypt.

According to the rating agency, Morocco and Egypt, “will benefit from the restructuring efforts of original vehicle manufacturers after covid-19, as they will seek to reduce their dependence on manufacturing and shorten their supply chains”.

Morocco, according to the agency’s rating, “resisted well on the budgetary level”, by succeeding in mobilizing “tax revenue up to 24.1% in the first quarter of 2020”, according to the situation of government resources and charges at the end of March 2020.

However, the expected decline in automotive production is likely to be a challenge, as the sector is the largest supplier of export earnings.

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