Morocco's self‑employed contractor programme sees bankruptcies as taxes rise and financing dries up

Mohamed Khalouqi, a Moroccan craftsman, shut his wooden‑furniture and traditional décor business after about four years, saying weak financing, falling demand and a sharp tax increase left him on the brink of bankruptcy.

Khalouqi had taken a 200,000‑dirham loan under the government’s “Intilaq” self‑employed contractor scheme, launched in 2015 to bring the informal sector – estimated at 30‑33 % of Morocco’s GDP – into the formal economy. The programme originally offered low tax rates (1 % for services, 0.5 % for trade), VAT exemption and access to health and pension benefits.

In recent years, prices have surged, demand has slipped and the tax rate surged to 30 % for earnings above 80,000 dirhams, prompting many entrepreneurs to abandon their ventures. Participants also face duplicated health‑insurance obligations and bureaucratic hurdles. While Morocco’s unemployment rate fell slightly to 13 % in 2025, the programme’s difficulties threaten its goal of reducing joblessness and spurring youth entrepreneurship.