Morocco: Drawing out of Payment Periods, a Perplexing Trend?
"While more than 30% of respondents said in 2015 that that the time between the transmission of invoice and collection was between 30 and 60 days, this share decreased to 24% of respondents in 2016 and 11% of respondents in 2017."
Contrary to 2016, which was characterized by a low economic growth of 1.4%, 2017 is marked by higher expectations with growth expected to exceed 4%. Paradoxically, the question of payment periods and delays has never been more current now in this context.
Especially since the implementation of the new Act 49-15 to develop the regulatory framework governing payment periods in Morocco has fueled debate. The text provides for, among other things, reducing the legal term between the issuance of the invoice and the final payment to 60 days.
For the third consecutive year, Coface is conducting the Moroccan payment behavior survey, the aim of which is to monitor the evolution of payment periods and delays. A new development, the 2017 edition also questions companies about their payment behavior expectations for the next 6 months.
The preliminary results of the Coface survey show the lengthening of payment periods in 2017, regardless of the sector of activity, size or type of business. This finding differs significantly from that which has been reported in previous surveys. In 2017, the average payment period has reached 99 days versus 82 in 2016.
Therefore, the periods observed are far from the 60 days recommended by the new regulatory framework, but this extension may be temporary and could be explained by economic factors. Companies are in fact expecting a stabilization of payment periods and delays in the coming months.
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