Manufacturing & Industry

A widening trade deficit, driven by a slump in auto exports, signals potential pressure on the Moroccan dirham and may necessitate policy adjustments to boost export competitiveness. Investors should monitor currency fluctuations and government responses aimed at diversifying exports beyond the automotive sector (Source).

Technology & Finance

The development of a legal cannabis industry is growing in Morocco, but the black market still dominates, posing challenges for investors. While the legal framework is in place, issues in competing with illicit operations persist. Investors must assess the government's ability to enforce regulations and curb illegal cultivation (Source).

A major bank has launched an internal audit over suspicious loans backed by weak collateral, raising concerns about lending practices and potential financial instability within the banking sector. Investors with exposure to Moroccan banks should closely monitor the audit's findings to assess any systemic risks and impacts on financial institution performance (Source).

Market Outlook

Morocco's economy remains growth-oriented, but the slowdown in credit growth could lead to tighter credit conditions for businesses. The government's wage increases for public sector employees will potentially stimulate domestic demand, although fiscal pressures are expected due to increased government expenditure (Source, Source).

Strategic Insights

Smartby LLC's advisory expertise offers valuable insights for investors seeking to navigate the diverse Moroccan market. Our team of experienced analysts stays atop the latest developments and can help identify opportunities tailored to your specific investment objectives.