The Moroccan Economy in Brief: Wednesday, August 3, 2022

Non-financial enterprises: Debt decelerates amid declining activity and uncertain outlook:

Non-financial business (ENF) financial indebtedness was on a moderate growth curve in 2021. A trend that has been noted following the completion of the State-guaranteed loan phase in response to the health crisis. Thus, after an increase of 3.9% in 2019 and 2.7% the following year, the annual growth rate of financial indebtedness of non-financial companies reached 1.3% in 2021, totaling almost 821 billion dirhams. In this table, the indebtedness of public enterprises fell by 2% to 271 billion dirhams. As for households, NFE debt as a share of GDP fell to 63.9% at the end of 2021. It has returned to its pre-crisis level following strong GDP growth over the past year (7.9%).

Managem, a title to strengthen in his portfolio according to M.S.IN:

Managem would be a title to strengthen in his portfolio, according to M.S.IN analysts. The value would show an average annual growth rate (AAGR) of consolidated turnover of 5.3% over the period 2022-2027. For the stock exchange company, the mining group should benefit from a positive volume effect, despite the fears of recession that could weigh on the prices of metals. Indeed, with the commissioning of the Tri-K project in Guinea in June 2021, its gold production capacity is increased to 3 tonnes per year over a 9-year lifespan. This is even Managem’s most important project concerning the Gold activity.

Mutandis: strong sales growth in the first half of 2022:

Good commercial performance for Mutandis. At the end of June, the group had consolidated sales of 1.02 billion dirhams, up 48% year-on-year. In the second quarter alone, sales were up 54% to 599 million dirhams. Over the period, Mutandis even exceeded its targets. 'Sales price increases are generally accepted, especially for certain categories of detergents, canned goods for export, food bottles or the Season range,' the industrialist said in his financial communication. At the end of the first half of the year, the seafood segment posted the best performance with a 27% growth in turnover to 254 million dirhams. This dynamic is driven by the turnover of canned goods (+16%), as significant export price increases did not impact the volumes sold.

DGI: 10.59 MMDH of additional revenue in 2021:

 Additional revenues, raised through amicable recovery or as a result of a forced recovery action, amounted to 10.59 billion dirhams (MMDH) for fiscal 2021, according to the Directorate General of Taxes (DGI). These revenues, which are mainly derived from the control of failures in terms of filing, the control on documents and on the spot of declarations, as well as that of the instruments subject to registration and stamp duties, represent 6% of the total revenue, specifies IMD in its 2021 activity report. He added that 64% of the additional revenue is generated at the level of corporate tax (IS) and income tax (IR).

New car sales decreased by 11.03% in Morocco at the end of July:

New car sales in Morocco stood at 95,544 units at the end of July 2022, decreased by 11.03% compared to the same period last year, according to monthly statistics from the Association of Vehicle Importers in Morocco (AIVAM). By segment, new passenger vehicle (PMV) registrations totalled 85,771 units in the first seven months of this year, down 9.68%, while that of light commercial vehicles (LGVs) totalled 9,773 units (-21.34%), says the AIVAM. The “Dacia” brand dominates the VP segment, with a market share of 27.55%, or 23,634 units sold at the end of July 2022, followed by Renault which sold 11,946 units (market share of 13.93%) and Hyundai (8,575 units and 10% market share), reports the same source.