Morocco is working to establish itself as a commercial and financial hub connecting Africa and Europe, says the American consulting firm Kearney in its latest report “Global Retail Development Index”.
The Moroccan economy is on the road to recovery, supported by an increase in household consumption, export demand and government policies, adds GRDI research report highlighting the growth potential of retail markets global post-covid.
After contracting by around 6% in 2020, the Moroccan economy expects growth of 5.3% this year. Inflation is expected to average 1.1% this year compared to 0.6% in 2020, the document said.
There is a resumption of agricultural activity, a vital sector, although very vulnerable to the monsoon, fueled by fiscal and monetary policies supporting private consumption, underlines the GRDI 2021 report.
Morocco uses pro-business policies to attract foreign and private sector investment, the document said, noting that retail sales in the country represent 12% of annual GDP and employment in retail trade represents 12, 8% of total employment, or about 1.2 million people.
Traditional retailing still dominates the Moroccan market despite the presence of a few modern retail chains. The relative underpenetration of the market offers significant upside opportunities for national chains and international retailers, say experts at the US consulting firm.
They say the boom in e-commerce, which is expected to grow around 16% by 2025, has prompted physical retailers to increase their digital capabilities.
Morocco has a high internet penetration rate of around 75 percent and offers the best 4G availability in North Africa. This should boost the e-commerce industry, Kearney predicts.
Driven by the increasing use of smartphones, mobile commerce in Morocco is growing faster than the overall e-commerce market, the report says, saying online shopping for clothing and apparel remains the top preference for consumers. consumers, followed by electronics.