2023-05-01 19:15:45
The textile and clothing industry is one of the sectors most affected by informality, both in terms of imports and production. A study carried out by the CGEM estimates the share of the informal sector at 54% in this sector, which is thus ahead of other sectors, in particular the construction industry, road and freight transport or even food, where the informal sector represents respectively 31%. , 32% and 26%.
The sectors most affected are clothing and upholstery. These are, in the opinion of (Amith) the Moroccan Association of Textile and Clothing Industries, “vulnerable to the informal economy because of the ease with which finished products can be produced in small units and sold on the local market”. But beyond these two branches, negative repercussions are felt throughout the sector.
For Amith, determined to promote a responsible and sustainable textile and clothing sector in Morocco, “the informal sector in our sector represents unfair competition for legal companies, compromises the quality of products, the protection of workers’ rights and the environment. And it also has a significant impact on end consumers.”
Professionals in the sector, and in particular garment makers, are constantly sounding the alarm bell in the face of the proliferation of clandestine workshops in several cities of the country, in particular in Casablanca, Tangier, Fez, Sidi Bennour, Guercif,… Units which would employ, according to an assessment of the Amith, about 200,000 people. A predominantly female labor force, living in precarious conditions in the douars neighboring the areas where clandestine workshops are established.
The production of these small units floods, explains an industrialist, “the local market with products that do not respect any quality standard, whose finish is poor and sold at a price defying all competition. The difference sometimes reaches 50% compared to the price of formal units”. Indeed, the articles are made of polyester and of lower quality than the local production made from polycotton. Informal production is mid-range meeting a large part of local demand.
Sourcing from companies in the sector
In addition to clothing, the upholstery fabric sector is also affected by the impact of the informal sector. According to manufacturers, the market share held by these informal workshops varies between 5 and 6% of a market estimated at 40 million meters per year. Production is mainly concentrated in Casablanca in small units in the districts of Lahrawyine and Sbite.
According to the manufacturers in the sector, “the activity of these units is penalizing for the sector insofar as the prices are slashed and our models are copied while this required a cost for the research of materials and the design!” . The drop in prices is between 30 and 40%. A competition that was fatal for several units which, unable to resist, ended up closing.
Contrary to what one might think, the informal circuit is well structured and has even developed a flow of business with local companies from which the workshops get their supplies of inputs. Payments are made in cash and without invoices. For its part, the Amith is mobilizing to fight against this informal economy, which results in unfair competition that undermines structured companies that respect the laws and regulations in force.
Moreover, the informal can also compromise the protection of the rights of workers who, in the informal sector, can be exposed to precarious working conditions, with low wages, excessive working hours and a lack of social protection. This can lead to worker exploitation and degradation of labor standards, which is of social concern.
Support to comply with requirements
Moreover, informal businesses that do not pay taxes thus harm the coffers of the state. Finally, continue the leaders of the association, the informal sector can also have a negative impact on the environment. Informal actors may not meet environmental standards in waste management, water and energy consumption, which can lead to pollution and environmental degradation.
Remedying this phenomenon requires, according to the manufacturers, raising the awareness of informal players and consumers and supporting these informal workshops by providing them with information, resources and training to help them comply with legal requirements. and operate in the formal sector.
The Amith calls for the establishment of measures to protect the sector against the harmful effects of the informal economy. Strengthen regulation, the establishment of clear standards, increased surveillance of companies in the sector, as well as appropriate sanctions in the event of non-compliance.
Encourage formalization through tax incentives, training, and specific support programs to facilitate the transition to formalization. Educate consumers through campaigns to inform them of the benefits of buying quality products made in compliance with safety and social responsibility standards. Strengthen border controls to prevent the entry of informal textile products into the Moroccan market, ensuring the strict application of customs regulations and standards in force.
And finally, provide incentives and benefits for legal companies in the textile sector to encourage them to remain compliant with regulations and standards, and maintain their competitiveness in the market.
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