Business failures in Morocco are expected to reach unprecedented levels in 2025, with 16,800 insolvencies projected—an increase of 7% from the previous year, according to the latest report from Allianz Trade. This figure represents a staggering 109% jump compared to pre-pandemic levels, highlighting a growing crisis within the country’s economic landscape.
The rise in bankruptcies comes amid a mixed economic environment. While public and private investments continue to support growth, several factors are undermining business resilience. The agricultural sector remains vulnerable to climate-related stress, youth unemployment is fueling social tensions, and cash flow challenges—especially for small and medium-sized enterprises—persist. Late payments remain a major obstacle, making it unlikely that insolvencies will decline before 2026.
According to Lluis Dalmau, an economist specializing in Africa and the Middle East at Allianz Trade, a potential reduction in administrative bankruptcies—those involving inactive companies dissolved through legal procedures—could improve the situation in the medium term. However, without significant improvements in payment delays or stronger financial support measures, a short-term reversal of the trend remains unlikely.
Morocco’s struggles reflect a broader global trend. Corporate bankruptcies have been rising worldwide, with a 10% increase recorded in 2024. Allianz Trade projects further growth of 6% in 2025 and another 3% in 2026, marking five consecutive years of rising insolvencies since 2022. In 2024 alone, four out of five countries experienced a surge in business failures, particularly in North America, Asia, and Western Europe. Sectors such as construction, transportation, and B2B services have been hit the hardest, weighed down by high interest rates, slow economic growth, and geopolitical uncertainties.
Maxime Lemerle, lead analyst for insolvency research at Allianz Trade, notes that 474 large companies went bankrupt in 2024—the highest number in a decade. This underscores the need for businesses to closely monitor risks associated with suppliers and commercial partners.
The outlook for 2025 and 2026 remains concerning. Allianz Trade anticipates that economic uncertainty and global trade tensions will further exacerbate the situation. In the event of a full-scale trade war, bankruptcies could rise by an additional 7.8% to 8.3%, according to the most pessimistic scenarios.
The employment impact could also be severe. Allianz Trade estimates that 2.3 million jobs will be directly at risk in 2025—120,000 more than in 2024. Western Europe and North America are expected to bear the brunt of these losses, followed by Asia.
In this volatile environment, businesses must strengthen their financial risk management. Securing access to credit, controlling costs, and diversifying revenue streams will be critical strategies for navigating the challenges ahead.
