Morocco: How public procurement benefits a small circle of companies

In Morocco, public procurement has become one of the central instruments of economic policy. According to national institutions, it represents between 17% and 20% of GDP, for several tens of thousands of invitations to tender per year and an annual volume of several hundred billion dirhams. Major infrastructure programs, the modernization of public services, and the digitization of the State are mostly carried out via this channel, which shapes the structure of the industry and the trajectory of private groups.

Increasingly concentrated strategic leverage

Analyses by the French Competition Council (Conseil de la Concurrence), the French Economic and Social Committee (CESE), and the French State Audit Office (Cour des Comptes) all point to the fact that a significant proportion of contracts are repeatedly awarded to a limited number of operators. In the construction and infrastructure sectors, a few groups dominate the main worksites. In the digital sector, a small circle of integrators and IT services companies are frequently involved in information systems and online platform projects.

This concentration does not exclude formal competition: procedures are open and criteria published. But the requirements in terms of sales, references, bank guarantees, and engineering reduce the real number of possible candidates. Players who are already present find it easier to meet these conditions, amortize their study costs on numerous projects, and consolidate their position over time.

A modernized legal framework, high barriers to entry

In terms of standards, Morocco has profoundly reformed its public procurement system: the 2013 decree, followed by decree 2-22-431 of 2023, reinforces transparency, dematerialization, and control of procedures. The principle of national preference has been clarified and made compulsory for certain segments, while a proportion of contracts is reserved for small and medium-sized enterprises.

However, the practical implementation of these principles reveals persistent barriers to entry. Financial and technical thresholds remain high on many projects, limiting access for emerging companies. Framework contracts and multi-year agreements stabilize relations between the government and a small circle of service providers, while many SMEs remain confined to subcontracting, with limited visibility on economic conditions.

Institutional networks and information capital

The weight of public establishments and companies, which bring together several hundred entities and subsidiaries, plays a structuring role. These organizations are both major principals and, through their shareholdings, direct market players. Over time, they have forged long-term relationships with certain private operators, based on repeated contracts, knowledge of mutual constraints, and co-construction of complex projects.

In this environment, information capital becomes a determining factor. The companies with the best connections to the major contractors have the most detailed knowledge of schedules, priorities, and technical standards, enabling them to anticipate invitations to tender and prepare files upstream. It is often at this level, discreet and difficult to measure, that the "hidden network" of major beneficiaries is formed.

Digitization: greater transparency, new filters

The dematerialization of public procurement—widespread use of electronic platforms, online publication of notices and results, e-procurement procedures—is one of the major thrusts of the reforms. It has improved traceability and reduced certain areas of opacity, by making unjustified use of derogatory procedures more difficult. International organizations see this as a significant step forward in terms of transparency and the business climate.

But digitalization also introduces new filters. Major groups have specialized units for monitoring, analyzing specifications, and managing multiple files. Around them, design offices and consulting firms support companies in preparing bids. Those who are already part of these networks are able to identify opportunities more quickly and respond more readily to formal requirements.

Reforming, controlling, and opening up competition

Faced with these challenges, Moroccan institutions have strengthened control mechanisms: regular reports from the Cour des Comptes, analyses by the Conseil de la Concurrence (Competition Council), and thematic audits. This work highlights progress, but also recurring weaknesses: poorly defined needs, recourse to exceptional procedures, concentration of technical studies, and partial monitoring of contract execution.

For many observers, the next step is to go beyond mere legal compliance to analyze the economic effects of public procurement. This implies publishing detailed data on who is awarded contracts, the cumulative amounts involved, the share of SMEs, and the degree of concentration by sector. Such indicators would make it possible to objectify the debate on the "big winners" and adjust support or regulatory instruments.

The aim is not to point the finger of blame, but to make public procurement a genuine lever for competition, innovation, and territorial cohesion. By gradually widening the circle of companies able to access contracts, strengthening support for SMEs, and securing subcontracting, Morocco can reduce the weight of rents without weakening its ability to perform. The network of major beneficiaries, now largely implicit, could then evolve towards a more open ecosystem, where performance and transparency take precedence over the history of relationships.