Rapid change leaves Moroccan firms in unfamiliar territory
"Rapid change in the Moroccan economy is placing huge pressure on local accountancy firms as they find their role and their way of working changing beyond recognition," reports the latest edition of the International Accounting Bulletin. MGI member Mohamed Boumesmar, from Casablanca-based member firm Audicis, joins the conversation.
Economic transformation brings increased pressures
Morocco's rapid economic transformation is challenging local accountancy firms as they adapt to new roles and compliance requirements. With increasing competition and economic complexities, firms face significant hurdles in maintaining profitability and renewing their workforce. In addition to this, accountancy firms in Morocco must navigate evolving client expectations, pricing pressures, and an aging professional population.
Regulatory changes
The Moroccan government has recently introduced several regulations to modernise the tax system and improve business conditions. The Finance Law 2023-2024 aims to enhance tax transparency and state revenue, introducing new VAT withholding tax regimes and tax obligations for foreign online service providers. These regulatory changes have significantly increased the demand for accounting and financial management services. Companies must adapt their systems to comply with new requirements, leading to a greater workload and need for technical expertise among accounting professionals.
Fee Pressure and Competition
Despite increased workloads, fee pressure remains a problem. Mohamed notes:
“Fees for non-audit services are not regulated in Morocco. Audit services are governed by a standard issued by the Order of Chartered Accountants, which has been revised by the Competition Council to no longer interfere with the setting of hourly rates. However, non- audit services remain unregulated and open to greater competition. Competition, especially for high-value clients, remains intense, notably among large firms and between these firms and medium or small-sized firms.”
Sectoral growth and opportunities
As the government continues to drive the economy through investment, Mohamed is keeping an eye on certain sectors.
“The healthcare industry will create a lot of demand, with an increase in the national health budget of nearly 10% and measures to universalise mandatory medical coverage implemented by Morocco. Similarly, the automotive and aeronautics sectors are also experiencing continuous development, to the point where Morocco is now a well-known regional hub in these industries. Finally, the sector of companies related to information technology and digital innovation continues to develop both in the Moroccan market and in the African or MENA markets.”
Mohamed also pointed out that preparation for the 2030 World Cup, which will be hosted by Morocco, Portugal and Spain, the Moroccan will will bring significant economic activity and development across various sectors.
To read the full article in the June edition of the IAB, members can click here (login to the MGI Worldwide member portal will be required).
For more information about our contributing member firm Audicis visit the firm profile page or website.
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