Corporate insolvencies : First turning point in 10 years, excluding Covid

This is the first time in seven years that the number of corporate bankruptcies has shown a downward trend. According to the latest Inforisk study, 2025 will see 15,307 companies go bankrupt, down 3.3% from 2024. This refers to the number of entities subject to one of the procedures relating to business difficulties: safeguard, receivership, or judicial winding up.
To find a similar level of decline, we have to go back to 2018, which saw 8,028 business failures, down 2% compared to the previous year. The geographical distribution of this phenomenon, which is typical in the life cycle of certain entities, shows that the Casablanca-Settat region alone accounts for 29% of bankruptcies, which is hardly surprising given that it is the driving force behind the creation of new businesses. That region is followed by the Rabat-Salé-Kenitra region, with 15% of insolvencies.
The Casablanca-Rabat axis, which continues to have a decisive economic impact, accounts for the majority of failures, with 44% of bankruptcies. In contrast, the relative impact of the southern provinces is limited.
Per sector and in absolute terms, commerce (33%), real estate (21%), and construction (14%) are the most affected. In terms of annual variation, certain sectors such as mining (-22%), agriculture (-11%), and transportation (-11%) have seen a decline in the number of insolvencies.
In terms of activities, some have recorded high growth rates in terms of insolvencies. These include events (+39%), real estate agencies (+31%), and perfume distribution (+29%). Conversely, other activities have shown greater resilience, recording significant declines. These include the distribution of agricultural equipment, where the number of failures fell by 24% between 2024 and 2025 despite recurring complaints from operators following the adoption of certain tax measures in recent years, particularly with regard to VAT on imports. This is followed by construction (-22%) and bakery and pastry (-20%).
Half of failing companies are five years old or younger. This often corresponds to the end of tax exemptions and therefore the beginning of rising fixed costs and cash flow pressures. Reaching five years of existence is therefore not always a guarantee of longevity. On another note, the latest Inforisk study indicates that the median share capital of failing companies is MAD 100,000 (USD 11,049), an indicator that points to the weak financial base of failing companies.

Hassan EL ARIF