Nearly 83% of businesses in Morocco are informal

Businesses in the Mena region are informal, unproductive and ill-prepared to overcome shocks, notes the World Bank in its report: « Shifting gears: The private sector as an engine of growth in the Middle East and North Africa». 

Although it varies considerably from country to country, from -15% in Egypt to -1.2% in Morocco, growth in sales per worker remains negative across the region. To boost productivity, it is essential to invest in various production factors and in innovation.

In Morocco, the most productive companies are not expanding enough to capture a larger market share, according to World Bank economists.

However, “ the increase in average technical efficiency (which means that companies use factors of production more efficiently), has contributed positively to an increase in labor productivity ”.

In addition, two features of the Mena region’s economies are likely to be contributing to low productivity growth. These are the long-standing segmentation between the formal and informal sectors, and the exclusion of women from the workforce. The informal sector accounts for around 10% to 30% of total production and 40% to 80% of total employment.

Around 40% of businesses in Lebanon, 50% in Jordan, and 83% in Morocco are informal. This justifies the need to understand the motivations of these companies in choosing this sector. Yet data on informal enterprises is scarce, notes the World Bank.

Growth A positive trend

The Moroccan economy is showing a positive trend, driven by strong exports, a falling budget deficit and lower inflation. These are the findings of the World Bank, which has updated its economic forecasts for the Moroccan economy (April 2025), as part of the World Bank / IMF Spring Meetings. Real GDP growth should accelerate slightly to 3.4% in 2025, driven by a partial recovery in agriculture. By contrast, non-agricultural GDP is expected to slow to 3.2% in 2025 due to a base effect, the impact of lower phosphate prices and heightened trade uncertainty on industrial production and investment. A rate of around 3.3% should be expected in 2026, followed by 3.5% in 2027.

Fatim-Zahra TOHRY