Casablanca – Allianz Trade has ranked Morocco 39th out of 49 countries in its 2022 Collection Complexity Index, suggesting a moderately high level of complexity of debt collection companies encounter doing business in the North African country.
According to Allianz Trade, the index is a “real decision-making tool” for exporters, particularly in terms of which markets to target, against the background of a high increase in company failures globally (+10% in 2022 and +14% in 2023).
The Collection Complexity Index includes 49 nations that account for 90% of global GDP and 85% of international trade flows. It evaluates countries’ performance with scores ranging from 0 (least complicated overlap) to 100 (most complicated overlap).
According to Allianz Trade, this score range incorporates the judgments of Allianz Trade’s global collection specialists on over 40 variables related to local payment patterns, current local court procedures, and current local bankruptcy procedures.
Allianz Trade’s complexity scale is structured into four levels: considerable complexity (score between 40 and 50), strong (50 and 60), very strong (50 and 60), and severe (above 60).
With a score of 57 — which indicates a high level of complexity — Morocco is ranked 39th behind Togo and ahead of India in this rating, slightly down from the previous edition.
The index also found that while Morocco has a high average Days Sales Outstanding (DSO), its domestic firm payment behavior is deteriorating with payments lasting 120 to 150 days on average.
Although Morocco has various insolvency procedures, they remain complex, slow, and generally inefficient for debt recovery, Allianz Trade’s study reported.
In addition, Moroccan exporters are exposed to the complexities of international collection, with a score comparable to that of the Netherlands or China.
According to the study, five of Morocco’s top ten trading partners have a remarkable collection complexity index, and two have a very high index: the United States and India.
