Morocco plans to introduce subsidies to help small companies leave the informal sector, employment minister Younes Sekkouri said. The aid consists of 10000 dirhams to subsidize rent payments of small companies to help them integrate the formal sector, Sekkouri said. The scale of the informal sector in the Moroccan economy amounts to 30% of GDP said a new study conducted by the Central Bank. The informal economy leaves workers in vulnerability without pension or health insurance and undermines the economy due to tax and anti-competitive practices. Nearly 3 million jobs are threatened by the informal production units which have the advantage of low production costs, according to Morocco’s employers’ association CGEM.

Source: The North Africa Journal March 17, 2023 13:50 UTC