Country: Morocco
Themes: Strengthening the Business Enabling Environment, Expanding Access to Competitive Contestable Markets,
Cross Cutting Themes: Gender, Digital
Anticipated Impact Areas: Quality Jobs, Private Investment
The Challenge
The productivity performance of Morocco's formal private sector has been underwhelming. Labor productivity in the corporate sector lags behind that of the overall economy, partly due to the formalization of previously informal, less productive firms.
Mission
With the support of CJET, an analysis has been conducted using data from the Observatory of Very Small, Small, and Medium Enterprises (OMTPME). This study encompasses approximately 260,000 registered corporate firms, drawing on data from 2016 to 2022.
The report proposes several recommendations:
i) Identify and eliminate any indirect incentives that encourage firms to remain small.
ii) Ensure that productive firms have access to the resources, inputs, and markets necessary for growth.
iii) Facilitate the exit of inactive firms through reforms of bankruptcy and insolvency frameworks.
iv) Focus more on supporting services-led development, as this sector holds significant potential for enhancing productivity and job creation through technology and connectivity.