CHALLENGES THAT COOPERATIVES FACE IN MORROCO.

Cooperatives play an essential role in the economic and social development of Morocco,
particularly in rural areas. They are seen as a solution to reduce poverty and unemployment,
as well as to promote sustainable development. However, cooperatives in Morocco face
several challenges that hinder their success and sustainability, some of these challenges
concern only a certain particular type of cooperatives here are some of these challenges:
Lack of access to funding and financial resources:
Many cooperatives struggle to obtain loans and grants to start or expand their businesses,
which limits their ability to invest in equipment, infrastructure, and marketing. Additionally,
the existing financial institutions and services are often inaccessible or unaffordable for
cooperatives, particularly in remote and rural areas such as Ben Guerir, Ouarzazate, Drarga just to
mention but a few. The lending financial institutions look at the security index and the debt-
to-income ratio which are weak in more cases than not. Lack of enough (paucity) funding
which leads to rocky patch labor force. Poor labor force means incompetent labor and
incompetent labor leads to poor quality employees who want to work less the hours than
required. In the first quarter of 2022, the United States Agency for International
Development (USAID) provided direct grants of $10,000 to the 960 Moroccan vulnerable
cooperatives with the incentive of providing an economic safety net for cooperatives that lost
part or all of their income-generating activities due to COVID-19 (USAID January, 2022).
Mainly, cooperatives in Morocco such as the agricultural coops, depend much on government
funding programs such as the “MOURAFAKA”, The National Initiative for Human Development
(INDH) and among others. Qualitative research which was conducted by Malak Bouhazzama and
Mssassi Said in 2021, reviled that, 76% of the cooperatives questioned declared having
benefited from at least one financing program and one training or support action. However,
they consider the constant support of the State and the promotion of these programs to be
necessary in order to benefit more especially from the financial aspect. This aspect is very
important for the sustainability of companies, because 98% declared that their main problem
is financial (page 9 of the report, 2021).

Limited access to training and technical support:

Most cooperatives are led by people who have little or no formal education or training in
business management, marketing, or product development. This lack of knowledge and skills
often leads to poor decision-making, many cooperatives struggle to access the necessary
training and technical support that could help them improve their operations and profitability.
Without adequate training and support, cooperatives may not be able to develop their
business skills or understand the complex legal and regulatory environment in which they
operate. This can limit their ability to grow and expand their operations, making it difficult to
compete with larger, more established businesses. Furthermore, without technical support,
cooperatives may struggle to implement new technologies or processes that could improve
their efficiency and effectiveness. Addressing this challenge requires investment in training
and technical support programs that are specifically tailored to the needs of cooperatives in
Morocco. Another research conducted by Dr. Tribak Wafae and Dr. Rguig Sara (Women rural
coops, 2021) where more than 700 hundred cooperative employees were being interviewed
in rural areas on their education background. These were their responses recorded in (%) as
the pie chart depicts below:
 Quel est votre niveau d'éducation?

38.46%
1 Analphabètes
2 École primaire
59.62%
3 École secondaire

Figure 1 shows the level of education for coops employees

Low Commodity Prices:

Low commodity prices refer to the situation where the market value of a product, such as
agricultural crops, livestock, or minerals, drops below the cost of production. This situation
can be devastating for farmers and cooperatives, as they are unable to make a profit and
sustain their operations. Low commodity prices (LCP) can affect cooperatives in several ways.
First, low prices can reduce the income earned by cooperative members, which in turn can
reduce their ability to invest in their farms or households. This can lead to lower yields and
lower quality products, which can further reduce prices and lead to a vicious cycle of declining
incomes. Second, L.C.P can reduce the profitability of cooperatives, making it difficult for them
to cover their costs and invest in new equipment or services. This can lead to a reduction in
the quality of services provided by the cooperatives, which can further reduce the
competitiveness of their members.

Tremendous Competition:
Competition is one of the biggest challenges that cooperatives in Morocco face. With the rise
of globalization and the increase in trade agreements, Moroccan cooperatives have to
compete with other businesses from around the world, making it difficult for them to survive.
Many of these cooperatives operate in industries that are highly competitive, such as
agriculture, handicrafts, and textiles. These industries require a lot of investment in
equipment, labor, and marketing, which makes it difficult for small cooperatives to compete
with larger businesses. Some businesses engage in unfair practices such as dumping, price
discrimination, or monopolizing certain markets. This puts cooperatives at a disadvantage as
they are unable to match the prices or scale of these larger businesses. To overcome these
challenges, cooperatives in Morocco need to work together to improve their bargaining power
and lobby for policies that promote fair competition and support their growth.
cultural barriers:
Cultural attitudes and traditions can present challenges for women's participation in
cooperatives. Women often face discrimination and limited access to resources and
education, which can limit their ability to engage fully in cooperative activities. In many rural
areas, women are expected to stay at home and take care of the household. This can make it
difficult for women to participate in cooperatives, particularly if they are expected to attend
meetings or work outside of the home. These tendances have been improving with time.
“However, despite the existence of a motivating legal regulation for the development of the
cooperative work and the efforts of several parties to encourage and support this movement, the
number of women cooperatives remains low and represent only 14% of the total of cooperatives on
the national scale.” Montanar, et. Al (2019). Language barriers can also be a challenge for
cooperatives in Morocco. While Arabic is the official language, we have many people who
speak Berber or French as their first language. This can make it difficult for cooperatives to
communicate with potential members or customers who speak a different language.

(By Saviour Mukuka)