Calls for Boycott of Maroc Telecom Over Reduced Profit Margins on Prepaid Cards

Beni Mellal – A Moroccan union of traders and craftsmen, affiliated with the Moroccan Labor Union (UMT), has expressed its outrage over the decision by Maroc Telecom to reduce the profit margin for traders on prepaid phone cards. The union is calling for an immediate boycott of all Maroc Telecom prepaid services until the company reverses its decision.

According to the union, Maroc Telecom has reduced the profit margin on prepaid cards from 7% to 4.5%, at a time when traders are demanding an increase in their profit margins on various forms of prepaid services, whether instant or via prepaid cards.

The union has described Maroc Telecom’s decision as “ill-considered and misguided,” and is urging all traders across various professional activities to stop supplying and selling all forms of Maroc Telecom prepaid services. It hopes to pressure the company to reverse its decision and respond to the demand for an increase in profit margins.

Youssef Boujhi, the provincial secretary of the General Union of Traders and Professionals in Marrakech, stated that Maroc Telecom’s decision, made without considering other stakeholders, especially traders and professionals who serve as the link between the company and customers, is a misguided and dangerous move with unconsidered social and economic consequences for a large group of traders and professionals.

Boujhi emphasized that the decision to boycott is irreversible until the company reverses its decision, which has caused discontent among traders and professionals without prior notice, in an unprecedented move that demonstrates the company’s lack of communication with its customers.

The union is calling on Maroc Telecom to respond to the demand for an increase in the profit margin for traders, raising it to 8%. It reiterated its call for traders and professionals not to supply any form of Maroc Telecom prepaid services until the company reverses its unfair decision against traders and professionals.

In related news, Maroc Telecom Group’s net profit increased by 0.5% to MAD 1.52 billion in the first quarter of this year compared to the same period last year, at constant exchange rates.

The company’s EBITDA increased by 1.7% to MAD 4.65 billion during that period, thanks to transaction volume growth and continued efforts to control operating costs. However, its cash flow from operations decreased by 15.5% to MAD 2.84 billion due to increased investments.