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Businesses struggle to keep their heads above water as lockdown to reach end in Morocco

While some of them were allowed to open their doors, businesses that were forced to suspend their activities during the lockdown in Morocco are struggling to keep their heads above water.

DR
Estimated read time: 4'

Since March, small businesses around the country have been forced to close their doors, and send their employees home to avoid the spread of the coronavirus and implement the government’s strict directives during the health crisis.

For almost three months, business owners have been struggling to navigate through this period, with no income and few resources to support employees and pay fixed costs. While most of them are still awaiting the end of the lockdown to resume activities, others, namely cafés and restaurants owners, were given the go-ahead to partially operate again.

By the end of May, most of these businesses were allowed to open their doors, but only to deliver food. The measure is part of a progressive strategy implemented by the government to resume commercial activities in the country.

But resuming work after a long and inactive period has not been an easy task. Suffering from the consequences of the forced closure, most of these businesses are struggling to get back on track.

Struggling to get back on track

«Reopening was very difficult», said Hamid, the owner of a sushi restaurant in Casablanca, who employs ten people. «We were hoping to benefit from the Damane Oxygène program but it was not the case», he regretted, referring to a State-backed loan program launched by the Economy and Finance Ministry in March to protect businesses from bankruptcy during the global health crisis.

«I am struggling to pay suppliers who want to be paid before sending us supplies», he explained. The entrepreneur indicated that in addition to having to pay delayed rent and his suppliers, he had to mobilize his own resources to pay employees and purchase hygiene products.

«We had to buy hygiene products for the employees such as face masks, gels and other supplies, as well as disposable aprons for each employee and that is very expensive», he complained.

«Half of my employees couldn’t make it to Casablanca because of the lockdown and the other half have fortunately benefited from the social security (CNSS) sums granted during the crisis», he explained.

While reopening weighs heavily on Hamid, who struggles to make ends meet, the situation is no different for other cafés and restaurants in the city. Said, who owns the Libro Café Restaurant in Casablanca, told Yabiladi that his business is «heavily betting on take-outs, which remain very low».

«Although we opened and we resumed activities, people still seem to be afraid of eating food from outside», he said. Like other business owners during the lockdown, Said struggled to keep his head above the water.

«We had cash-flow problems and we were unable to have all employees back to work : I employ 11 people and now I only have two of them working as others couldn’t make it to Casablanca due to the intercity travel ban», he argued.

Said, who opened his business earlier this year, was forced to close months later due to the health crisis. «I asked for a Damane Oxygène loan and I am still waiting for an answer», he reported.

Mohcine, the manager of an Asian fast food restaurant, is in the same boat as Said. Awaiting a response for his Damane Oxygène loan, the manager said that even after resuming the activities his «business’s turnover is down by 50% and deliveries are not that numerous». «We close at 6 p.m. and our clientele prefers to order in the evening, so we are losing most of the orders», he explained.

Despite the limited resources, the business has purchased hygiene products to protect employees and customers. «We disinfect surfaces and we have bought all necessary products for that purpose, such as masks, and gloves and we have introduced a policy to avoid contact with clients», he added.

Awaiting the go-ahead

While café and restaurant owners are struggling to stand on their feet, other businesses in the country are impatiently awaiting the day they will be able to resume their activities. Affected by the health crisis, hairdressers and salon owners in the Kindgom have sent a letter to the government suggesting a sanitary protocol to follow when the lockdown is over.

Abdelkabir El Amraoui, a Casablanca-based hairdresser and member of the national group of hairdressers in Morocco, told Yabiladi that the body has suggested to «follow strict measures when they are allowed to open their doors».

«We put a series of measures, including one that have clients write their names and phone numbers when visiting salons», he said, adding : «we want to help and we mostly want to get back to work».

El Amraoui explained that like other small businesses barbershops and hairdressers have been struggling to maintain their businesses. «As a hairdresser and owner of a salon, I have not been able to pay the rent. Most of us have the same problem», he explained.

In addition to expenses like rent and salaries, these businesses had collateral damages. «Hairdressers work with products that can perish. Most of us have bought hair and face products before the lockdown, and these have expired during the last three months. We cannot use these products anymore and that is a loss of money», the hairdresser stressed.

«Most of us could not pay collaborators, because most of them do not have a salary at all. They are paid based on a percentage and let’s not forget electricity bills and loans», he regretted.

While hairdressers are in the need of saving their businesses, others are on the same boat, including dry cleaners. Sanaa, the owner of a laundry in Casablanca, said that she knows nothing about the date she can open her business that has been closed for three months.

«Right now, I don't know if you need a special permission to open. The authorities have not yet communicated on the matter, knowing that we are two days away from the end of the extension of the health emergency. I have no visibility at this time», she added.

During the week, the government is expected to announce the end or the extension of the lockdown and state of health emergency. Meanwhile, owners are trying to figure out how to adapt to the current situation and save their businesses amid the health crisis.

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