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The Moroccan Economy in Brief: Monday, July 19, 2021

Eid Al Adha will drain a turnover of more than MAD 12 billion:
The commercial transactions of slaughter animals on the occasion of Eid Al Adha 1442 will achieve a turnover exceeding MAD 12 billion, predicted the Ministry of Agriculture, Maritime Fisheries, Rural Development and Water and Forests. Much of this turnover will be transferred to the rural environment, allowing farmers to meet the expenses of other agricultural activities, especially during the start of the next agricultural season 2021-2022, said the ministry in a statement.

Dislog opens its capital to Mediterrania Capital Partners:
Dislog Group and Mediterrania Capital Partners have just announced a fundraising of MAD 280 million within the subsidiary Dislog Industries. With this fundraising, Dislog Group intends to strengthen the equity of its subsidiaries and raise an additional debt of MAD 300 million, allowing it to acquire brands in the FMCG (Fast-Moving Consumer Goods) sector in Morocco and to accelerate its international expansion, notably in Tunisia through Dislog Industries Tunisia, recently created with a capital of MAD 6 million.

Alliances: Increase in turnover:
The consolidated turnover (CA) of the Alliances Group stood at MAD 737 million in the first half of 2021, up by 10% compared to the same period of the previous year. Sales in Morocco accounted for 73% of total revenues and amounted to MAD 538 million, up 51% compared to the end of June 2020, the Group said in a statement on its indicators for the second quarter of 2021. "The recovery of activity recorded at the beginning of the year by the Alliances Group has accelerated", underlines the Group's management, adding that the international activity is mainly marked by the acceleration of project deliveries in Cameroon and the progress of the construction work of the Entente Tower in Abidjan. The Group's net debt amounted to nearly MAD 2.34 billion at the end of June 2021, down 6% compared to the same month of 2020, the same source indicated, noting that land acquisition operations are being finalized.

Budget deficit: MAD 29.5 billion at the end of June:
The budget deficit increased at the end of June. According to the situation of expenses and resources of the Treasury (SCRT) for the first half of 2021, it reached MAD 29.5 billion, against a deficit of MAD 29 billion for the same period of 2020. "This situation should be analyzed taking into account a base effect related to the impact on tax revenues of the sudden halt of activity in 2020, particularly during the period of containment, and the mobilization in 2020 of significant exceptional revenues under the Special Fund for the management of the Covid-19 pandemic," explains the Ministry of Finance. The department adds that this situation should also be analyzed "taking into account the signs of recovery of economic activity perceptible from the first quarter of 2021, in connection in particular with the good agricultural campaign, the recovery of domestic demand and the conduct of the vaccination campaign in favorable conditions, as well as the relaxation, during the month of June last, of the sanitary restriction measures.

Bank liquidity deficit widens:
The bank liquidity deficit widened further, during the past week, settling at MAD -89 billion on weekly average, up +9.9% compared to the previous week, according to BMCE Capital Global Research (BKGR). This is likely due to the increased demand for cash a few days before Eid Al Adha, said BKGR in its latest Monetary and Bond Newsletter. Paradoxically, the Central Bank has reduced its 7-day advances in the money market by MAD 8.01 billion, limiting itself to injections of about MAD 28.39 billion. Despite the planned payment of civil servants' salaries on July 16, 2021 on the occasion of Eid El Adha, the Kingdom's money manager has shown great dynamism on the money market through the launch of 13 investment operations of its cash surpluses for a total of MAD 23.2 billion against 12.6 billion the week before. The weighted average rate (WAR) remained in line with the key rate and thus maintained its usual level of 1.5%.