The greatest barriers to doing business in Morocco include lack of transparency in government procurement, slow bureaucratic decision-making and procedures, and restrictions on pre-payments for imports prior to delivery. Companies often complain about delays in receiving government payments.
The legal and banking systems in Morocco differ in many ways from U.S. systems. The legal system derives from a combination of French and Islamic laws and can be complex for U.S. companies to navigate. International and domestic arbitration are accepted and used in business contracts. Morocco has made significant reforms to the banking system in previous years, including structures and programs for foreign direct investment (FDI), project finance, and trade finance. Despite recent progress, significant delays in procurement implementation and payments can still occur.
U.S. exporters who require 100 percent advance payment often encounter difficulties with the restrictions on prepayments of current orders. Currently, Moroccan companies can prepay up to 30 percent of the total shipment in advance of importation and letters of credit are often used to finance shipments. A Moroccan company can prepay 100 percent only for orders under MAD 200,000 (approximately $20,000). Small Moroccan technology startups can now pay for foreign services with international credit cards under “e-commerce” up to the amount of MAD 500,000 ($50,000) per year, subject to obtaining advance approval from the Moroccan government. Payments from Moroccan government-owned companies can be slow and are often burdened by heavy bureaucracy.