Compliance and Financial Resilience: Morocco’s Struggle Amid Global Crises and Drought

Date: October 12, 2023

Category: Business and Finance

Morocco’s banks and financial institutions have been at the forefront of adaptation and innovation in a volatile global economic climate. This article provides insights into Morocco’s current financial landscape and the role compliance plays in navigating challenges.

The Regulatory Environment: A Shifting Tide

Economic Pressures
- Raw material prices soaring
- Supply difficulties
- Expired State-guaranteed cash credits
- Agricultural drought affecting around 70% of the country’s land
Government and Bank Initiatives
- Enhancing loan guarantees
- Offering debt rescheduling
- Extending payment deadlines
- Central bank key interest rate hikes
- Crisis support measures

Global Instability’s Impact on Morocco: The Ukraine War

Details discussed under ‘1. The Regulatory Environment: A Shifting Tide’

Opportunities in Morocco’s High-Yield Market

Sector Opportunities
- Banking and finance
- Commodities
- Infrastructure
- Food and beverage
- Industrials
Investment Attraction
- Stable financial sector
- Meticulous supervision
- Low average leverage ratio

Emerging Alternatives: Financing Beyond Banks

Expanding Role of Non-Bank Financing Companies
- Factoring companies
- Financial leasing companies
- Financing firms

Innovating Financial Techniques: Fueling Morocco’s Economic Engine

Supporting Market Needs
- Facilitating financing by the capital market
- Expanding Sharia-compliant finance offerings
- Promoting collaborative financing
- Encouraging fintech development

Government and Regulator Initiatives
- Emphasis on ESG issues
- Renewable energy and sustainable finance development
- Support for ESG/Sustainability-Linked Lending and Sukuk certificates

As Morocco faces economic challenges, the financial sector’s compliance with regulations and innovation continue to play a crucial role in fostering the country’s economic resilience.