Mazour: The Legal Insolvency Does Not Exceed 5,000 Companies and the Government Protects Small Ones from Payment Delays
Follow-up
Riadh Mazour, Minister of Industry and Trade, confirmed that the actual number of insolvent companies in Morocco does not exceed 5,000 cases, contrary to the figures claiming 16,000 companies. He pointed out that legal insolvency is the only one recognized and officially recorded in courts, while other figures are often based on paid databases that may inflate the number.
The minister explained that the number of registered companies in the Social Security Fund is approximately 650,000; however, the actual number of active companies does not exceed 220,000 to 230,000, with the others being inactive for various reasons, which does not necessarily indicate insolvency.
Mazour noted that Morocco sees the establishment of around 100,000 new companies annually, emphasizing that the process of creating new companies and the disappearance of others is a natural part of economic dynamics, describing it as the “life cycle of a company: it is born, grows, and may then stop.” He added that the closure of some companies is due to objective reasons such as technological obsolescence, low profit margins, or fair competition from more efficient companies, but he stressed the need to combat corruption, nepotism, and unfair practices that undermine competitive spirit.
The minister touched on the difficulties faced by small and medium-sized enterprises in dealing with payment delays from larger companies, clarifying that the law requires large companies to report and pay fines, with a progressive hierarchy based on their turnover, to encompass all companies. He explained that the government has amended the fines system so that these fines are deposited directly into the state treasury, making it a mandatory mechanism that cannot be negotiated, contributing to the collection of 2 billion dirhams last year and ensuring compliance with payment deadlines.
Mazour concluded that these measures enhance the protection of small and medium enterprises, ensuring their survival while guaranteeing fair competition and reducing cases of insolvency resulting from delayed payments by large clients.
