Al Fusaic

View Original

Impact of COVID-19 on Morocco’s Economy

By Oumaima Fathi


Context: 

According to The United Nations Development Programme, the coronavirus COVID-19 pandemic is the defining global health crisis of our time and the greatest challenge we have faced since World War II.  The death toll worldwide so far from the coronavirus COVID-19 outbreak is 2,759,685 as of March 25, 2021. 

The COVID-19 pandemic officially emerged in Morocco on March 2, 2020. As the rest of middle-income countries, Morocco faces hefty challenges to recover its economy from the pandemic’s repercussions. 

Morocco’s early response to the COVID-19 pandemic:

Morocco has taken strong prompt measures to halt the spread of the coronavirus epidemic. Starting the 15th March 2020, Morocco suspended all international flights, and the following day all educational institutions from pre-primary to tertiary and non-essential businesses were closed. On the 19th March, Morocco declared State of Emergency that went into effect the following day alongside a nationwide lockdown. 

Economic impact of COVID-19 crisis in Morocco:

Figure: Sectorial Economic Vulnerability to Lockdown Measures in Morocco

Source: Policy Center for the New South. RP 20 – 17. November 2020.

The implementation of preventive measures to control the coronavirus outbreak in Morocco led to the disruption of key economic sectors:

Measures to alleviate the economic impact of the COVID-19

  • Morocco’s Ministry of Economy, Finance, and Administration Reform launched the program “Damane Oxygene” to protect businesses from bankruptcy in the face of the COVID-19 crisis. The program benefited eligible companies by covering part of their loans, up to three months of operating expenses or periodic interest payments.

  • The CDG group, a state-owned financial institution, facilitated access to financing by SMEs and micro-enterprises by putting in place various exceptional tools. This includes the extension of financing deadlines, increase in the share of financing, and postponement of credit repayment terms up to 3 months. For self-entrepreneurs, a zero-interest rate has been decided of up to 15000 Moroccan Dirhams (Around 1500 USD).