SMEs IN MOROCCO

Summary ❖ What is an SME in Morocco ? ❖ Available supports of SMEs in our country ❖ International supports for Moroccan SMEs ❖ Case Study of a Moroccan SME ❖ Conclusion and recommendations 2

The definition of SME in Morocco SMES represent almost around 95% of private businesses and contribute 40% of private investment and 30% of exports. SMES in Morocco are defined on the following bases : ➢ Turnover is between 10 MDHS ( €) and 175 MDHS ( €) ➢ The permanent workforce is between 10 and

SMEs local supports In Morocco, the authorities set up an institutional ecosystem to provide the necessary support for SMEs: ➢ MarocPME supports SMEs in their process of modernization and improvement of their competitiveness and they provide a range of innovative offers. The Imtiaz-growth program Moussanada program Moukawalati program 4

The Imtiaz-growth Program ➢ Targeted SME: ○ Existing industrial SME of Moroccan private law ○ Turnover > 10 MDH at the end of the last financial year ○ Turnover <= 200MDH at the end of a financial year during the last 3 years ○ Start-up or spin-off SME anticipating in its business plan for the next 3 years to achieve a turnover of HT <= 200 MDH 5

The Imtiaz-growth Program ➢ Targeted Projects: ○ 2nd product transformation ○ Strengthening production capacity linked to industrial ecosystems ○ Strengthening the relationship with a client ○ To seize new market opportunities at national and international level ○ The change of scale in terms of growth 6

The Imtiaz-growth Program ➢ Fundable investment categories: 7 RateCategories 75% minimum of the Investment Project Production equipment and / or intangible investment + handling equipment + approach fees. 20% maximum of the Investment Project Land, Construction, building and development related to the material investments to be made, object of the development project. Maximum 5% of the Investment Project Preliminary Fees + Miscellaneous & Contingency Expenses (for Equipment), Capped at DH for SMEs, and DH for very small businesses.

The Imtiaz-growth Program ➢ Investment promotion capital PMEIMTIAZ GROWTH Investment = 20% of the investment project, maximum at 10 MDH TPEISTITMAR GROWTH Investment = 30% of the investment project, maximum at 2 MDH 8

Support From The Gouvernement ➢ The tax and customs : ○ Low taxes cost ○ Exemption from the import duty on equipment ○ Exemption from VAT on equipment, tools and capital goods imported or acquired locally ○ The total exemption of the income tax during the first 5 consecutive years of their exploitation 9

International support for Moroccan SMEs Morocco is a founding member of the European Bank for Reconstruction and Development (EBRD) and became a country of operations in French-Moroccan agreements mirror the new orientation economic and financial relations consisting in supporting SMEs. The Saudi Fund for Development (SFD) donated $100 million to support the financing of SMEs in Morocco The World Bank is providing technical and financial support to the government of Morocco to improve the financial lives of households and small businesses 10

Example of a Moroccan SME ➢ The Company : Orientines ➢ Date of Creation : 2001 ➢ Capital : DHS ➢ Specialized in the manufacture of artisanal Moroccan cake and biscuits ➢ Support Program : The Imtiaz-growth Program ○Contributed to the construction project of the new production unit and the acquisition of additional materials 11

Conclusion and recommendations Encourage reinvestment of profits and self-financing through the implementation of a tax system adapted to the results and the revaluation of balance sheets. Reserve a quota (from 30 to 40%) of public contracts to SMEs. Establish a support fund for innovation. Innovators need credit systems to help them overcome difficult times. The development of truly innovative SMEs requires the establishment of laboratories in universities and large companies The development of innovative SMEs requires laboratories in universities and large companies close to them. 12

REFERENCES - MarocSME : Financing SME in Morocco : financement-des-PME-au-Maroc1.html#toc4 financement-des-PME-au-Maroc1.html#toc4 - SME in Morocco : df df 13