The Moroccan Economy in Brief: Wednesday, August 10, 2022

Dari Couspate is established in Europe:

Moroccan couscous and pasta specialist Dari Couspate is heading to the European market. The company announces its establishment in Belgium through the acquisition of a couscous production unit. Through this acquisition, Dari Couspate expands the scope of its industrial activities internationally and opens the way to new growth prospects complementary to the company’s export activity, informs the Group in a press release published on the website of the Moroccan Capital Market Authority (AMMC).

Non-financial businesses: Slight increase in debt in 2021:

Financial indebtedness of non-financial enterprises (NFEs) rose by 1.3% in 2021, reaching almost 821 billion dirhams, after a growth of 3.9% in 2019 and 2.7% in 2020. This is reflected in the annual report on financial stability, published by Bank Al-Maghrib (BAM), the Insurance and Social Security Supervisory Authority (ACAPS) and the Moroccan Capital Market Authority (AMMC). This development mainly covers a decrease in the debt of public enterprises from 2% to 271 billion dirhams and an increase in the debt of private NFEs from 3.1% to 550 billion dirhams, notes the document.

Fiduciary traffic: Return to normal rhythm in 2021:

The circulation of the fiduciary currency rose by 5.6% last year, but this increase remains sharply down compared to 2020 in the middle of the pandemic. According to data from Bank Al-Maghrib (BAM), the growth in fiduciary traffic has returned to its normal pace, instead of the 20.1% rebound in 2020. The breakdown by type of currency indicates that banknotes increased by 5.4% to 2.3 billion denominations, while metal coins increased by 3.1% to 3 billion units, says BAM in its annual report on the economic situation, monetary and financial. In detail, the cut of 200 dirhams predominates with a share of 55%, followed by 1 dirham coins with 29%.

Gas: Sound Energy is looking for a co-investor in Tendrara:

Sound Energy PLC announced on Tuesday, August 9 that it is seeking a co-investor partner for its gas project in Tendrara Onshore, in the Eastern region. The oil and gas company has evaluated financing solutions for the remaining $60 million of the net development costs of this project, which it holds up to 75%. The aim is to finance the second phase of the project, as well as to advance exploration in the Grand Tendrara and Anoual areas, the British company said. “A number of industry counterparties able to provide the required funding have expressed interest in continuing discussions on both the Tendrara production concession and the surrounding Grand Tendrara and Anoual exploration permits.”, explained Sound Energy.

Average monthly net borrowing at 13.4 billion dirhams at S2:

The average gross financing requirement per month would be 13.4 billion dirhams in the second half of 2022 (S2-2022), according to Attijari Global Research (AGR). Based on the Finance Act (LF-2022) forecasts of the need for the Treasury and the level of its estimated losses of 61 billion dirhams during the rest of 2022, we estimate that the average gross borrowing requirement per month would be 13.4 billion dirhams by H2-2022."indicates AGR in its latest "Research report fixed income" document entitled "towards a continuation of the rate increase in 2022". This is a relatively high level and should increase pressures on primary rates, AGR rating .