One year after the new law on payment terms came into force, business failures continue to rise. These are the findings of the latest study by data provider Inforisk. In the first half of the year, the number of business failures reached 7,659, up 14% on the same period in 2023. This is the highest half-yearly figure ever recorded, according to the experts at Inforisk. However, this growth rate remained stable over the last four years. If one looks at the trend in terms of insolvency between the first half of 2021 and the first half of 2024, the average annual growth rate has still risen by 14%. But this shows that Morocco is still unable to solve the problems associated with payment delays.

■ Sad record for Tangiers / but lowest rate for Casablanca
In terms of distribution, Tangiers stands out with the highest rate of insolvencies, with an annual increase of 35%, followed by Rabat at 30%, Agadir at 15%, and Marrakech at 13%. Casablanca and Fez had the lowest rates, with an annual variation of 7%. It is important to note that the Casablanca-Rabat-Tangiers axis alone accounts for 43% of business failures.
■ Retail, construction, and real estate hardest hit
Sector-wise, retail remains the hardest hit, with an insolvency rate of 33%. This is followed by real estate (20%) and construction (15%), as well as transport and manufacturing (9% and 7% respectively).
Furthermore, certain sectors saw a sharp increase in insolvencies between 2023 and 2024, led by the agricultural sector (+24%), mainly due to unfavorable weather conditions and inflation. Insolvencies in the healthcare sector also rose by 24%, while those in the hotel and catering sector jumped by 22%.
■ Very small businesses still the big losers
Today’s findings are unequivocal: most business failures are linked to payment delays. In fact, according to the experts at Inforisk, 40% of business failures in Morocco are due to late payment. They are by far the leading cause of insolvency. In fact, late payments and/or unpaid invoices have a direct impact on a company’s cash flow. This lack of cash flow is directly responsible for insolvency. « This is why legislators have introduced Law 69-21 on payment terms, which will have a positive impact in the medium term, particularly on long-term delays». According to the same study, small businesses are the most frequent defaulters, with a share of 99.3%, followed by SMEs (0.6%) and large companies (0.1%). However, this finding is not solely attributable to payment defaults, but also to the organization of VSEs, which often lack well-honed cash management processes.
Badr CHAOU