Morocco Makes Progress in Integrating Street Vendors into Formal Economy

Rabat — Morocco’s Minister of Industry and Commerce Ryad Mezzour recently said that over 86,000 street vendors have joined the country’s formal economy, a significant progress in the implementation of the national program aimed at regulating informal commerce.

Speaking at the House of Representatives, Mezzour revealed that these vendors make up approximately 70% of the 124,000 identified nationwide.

The commerce sector ranks as Morocco’s second-largest employer, engaging 1.6 million people — 15.6% of the active population — and generating MAD 151 billion ($15 billion) in annual value.

While operating outside formal channels, street vending plays a vital role in Moroccan society. This sector meets local needs and provides livelihoods, especially in working-class neighborhoods.

Despite its economic importance, economists assert that the growth of informal commerce continues to hamper both structured businesses and consumer service quality.

The government plan operates under Morocco’s National Human Development Initiative (INDH) with local authority oversight. The government’s focus in this sector is on regulation, rather than eliminating this important and longstanding commercial practice.

However, assessments by the Ministry of Interior and the Economic, Social and Environmental Council (CESE) have identified several obstacles to fully, successfully implement the program.

Part of the government’s plan is to move these vendors into more formal commercial centers, but they face a lack of places to relocate them. Additionally, not all vendors are willing and open to make this change, and in terms of formal bookkeeping, there are significant discrepancies between initial vendor counts and those working in specific areas.

In response to this situation, Mezzour has urged municipalities and authorities to develop more nuanced approaches to organizing street commerce, including conducting detailed analyses of supply chains, points of conflict, and local characteristics to create more effective and sustainable solutions.

The government is simultaneously promoting vendors to take on the self-employment (auto-entrepreneur) status to encourage informal workers to join the structured economy.

This status offers simplified tax advantages and access to social protection, marking important progress in coverage and recognition for small-scale entrepreneurs.

While the gradual integration of street vendors into the formal sector shows progress, it also reveals the limitations of centralized approaches to diverse local realities.

The key now lies in coordination between local authorities, the state, and economic stakeholders to develop flexible, fair, and sustainable regulation that addresses both social and economic challenges in neighborhood commerce.