Rabat – Morocco’s business climate in the industrial sector during the first quarter of 2022 was “normal” for 57% companies, while 36% said it was “unfavorable,” according to data compiled by the Moroccan central bank, Bank Al Maghrib (BAM).
In its latest report, BAM highlighted that 30% of the companies operating in the agri-food sector and chemicals and para-chemistry, as well as 50% in the textiles and leather industry faced unpleasant business conditions between January and March.
Meanwhile, manufacturers in electrical and electronics indicated a “normal” business climate.
Around 52% of industrials said their production conditions were “normal” in the first quarter of this year, including 67% of companies operating in mechanics and metallurgy.
But 44% reported difficulties in production, 78% of which are from the electrical and electronic sector and 56% from chemistry and para-chemistry.
BAM reported that the stock of raw materials and semi-finished products maintained a normal level in all industries.
But the evolution of the number of employees during the last three months saw a stagnation, particularly in the agri-food industry, chemistry and para-chemistry, and electrical and electronic.
Meanwhile, 40% of companies in the textile and leather sector increased their workforce, while 46% of mechanics and metallurgy reported a decline.
For the next quarter, a great number of manufacturers anticipate a stagnation in the number of employees.
The bank’s data also indicate that manufacturers reported an increase in unit production costs in all industries.
The positive results are attributable to an increase in raw material and energy costs.
Only 25% reported difficulties in generating sustainable revenues, mainly 71% from the electrical and electronic.
In the mechanics and metallurgy sector, generating revenues was easy according to 44% manufacturers and normal according to 38%.
While the majority of companies reported that they were able to have access to bank financing, 9% of firms said it was “difficult” to access such funding.
Capital expenditure also saw a stagnation according to the report, especially in the mechanics and metallurgy and in chemistry and para-chemistry.
In the agri-food sector, almost a third of businesses reported lower spending in investment while 46% of companies in the textile and leather and 83% of in the electric and electronics reported an increase.
For the next quarter, 52% of manufacturers anticipate stagnation in spending on investment while 35% expect an increase.
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