Morocco has one of the highest levels of household and corporate debt in Africa, reflecting an increasing maturity of the credit market. This situation, although bringing opportunities, also highlights certain challenges for the private sector and Moroccan banks in a changing continental context.
With one of the highest household and business debt rates on the continent, Morocco illustrates a notable trend in the evolution of credit markets in Africa. Although below the levels recorded in large emerging economies, this situation reflects growing potential for Moroccan banks and poses structural challenges. Through its latest report, the European Investment Bank (EIB) provides a precise overview of this dynamic, highlighting the obstacles and prospects for the private sector.
Second in Africa
With a household debt rate of around 30% of GDP, Morocco occupies second place in Africa, behind South Africa, according to data from the fourth quarter of 2023. This figure is significantly higher than the average for pre-market markets. -emerging. However, it remains below the levels observed in emerging or developed economies.
The report from the European Investment Bank (EIB) underlines that this situation reflects a positive development in Moroccan credit markets, which are increasingly mature. According to the EIB, the development of household loans could offer a significant growth opportunity for Moroccan banks, while stimulating household investments.
The corporate sector is also following a similar trajectory. Morocco ranks second behind Tunisia for the corporate debt rate. As for households, this level remains below emerging market averages, but it illustrates an active credit dynamic in the country.
In Africa, the business sector generally tends to be more indebted than that of households, with the average for “frontier” markets standing at 25% of GDP compared to 13% for households. However, the EIB notes that African banks often favor large companies to the detriment of small and medium-sized enterprises (SMEs). This concentration limits the impact of credit on the real economy, a challenge that Morocco will also have to meet to boost its local economic fabric.
Structural barriers to financing
The EIB report highlights a contraction in credit to the private sector on a continental scale, falling from 56% of GDP in 2007 to 36% in 2022. This trend is accompanied by weak growth in productive assets, slowing industrialization and investments. For Morocco, this issue raises questions about the diversification of financing sources and the improvement of conditions for small businesses.
Furthermore, the role of multilateral development banks, such as the EIB, remains crucial in the face of climate and digital challenges. These institutions can contribute to more sustainable and inclusive projects, essential to ensuring resilient economic growth in Morocco and Africa.
