In a context where economic, geopolitical and societal disruptions are now commonplace, managers seem to be returning to a form of moderation and despite everything retain relative confidence in the prospects of their company, while learning to navigate this ocean of uncertainties. This is what reveals the Morocco edition of the 27th CEO Survey conducted by PwC among 4,702 managers. This year, the 27th edition of PwC’s annual survey highlights the balancing act of the manager, aware of the imperative need to transform and challenged by constantly renewed risks and disruptions. The study questions the relationship of managers, and more broadly of companies, to value, but also to the transformations taking place in organizations, the sustainability of the company and its relationship with the creation and preservation of value. Rising growth prospects After a notable drop in confidence in the global economy between 2022 and 2023 (77% to 18%), in Morocco, the 2024 edition highlights the return of confidence particularly in the Moroccan economy, in proportions similar to those of 2022. 90% of leaders are confident about economic growth in Morocco over the next 12 months, while only 10% envisage a regression. “Although Moroccan companies have been facing a disrupted economic panorama for several years, their optimism regarding growth prospects remains, thanks in particular to the major projects that the country is carrying out in the short term, particularly in the context of the organization of the 2030 soccer World Cup. At PwC in Morocco, we are firmly convinced that Moroccan leaders seem to be embarking on this path of continuous and sustainable transformation, by focusing on a pragmatic approach placing people at the heart and technology at its heart. service. The attitude adopted by Moroccan managers towards artificial intelligence and climate change perfectly illustrates this pragmatism,” explains Reda Loumany, Managing Territory Partner of PwC in Morocco. Moroccan managers also adopt a more optimistic stance than the global average on the prospects for growth in their own company’s turnover. Looking ahead in 3 years, Moroccan managers are almost unanimous: confidence in the future is essential when it comes to the growth prospects of their company. 61% say they are extremely confident about the future of their company over the next three years. 41% of them express strong confidence this year, a notable improvement compared to 33% last year. With this confidence, 51% expect an increase of more than 5% in their workforce in the coming year. A figure which exceeds the overall average by 12 points, which is 39%. “Many Moroccan companies consider that the next chapter of their growth will be written outside the borders of the Kingdom. Confidence in the international economic outlook and the desire to accelerate expansion through external growth operations should make it possible to materialize this ambition in the very short term,” underlines Jonathan Le Henry, Partner Strategy& (the strategy consulting entity of PwC), Head of Strategy& in the Maghreb. However, despite these results, 51% of managers in Morocco declare that their company is very strongly or extremely exposed to at least one risk. Inflation remains a major source of concern. Cyber risks also recorded an increase compared to last year, going from 13 to 17%, illustrating the growing and constant pressure weighing on companies in terms of security. CSR risks are also on the minds of the d Short-term leaders: 1 in 5 leaders in Morocco feel very strongly or extremely exposed. in the coming year to climate change and social inequalities. These CSR elements reinforce their Top of Mind position in the minds of CEOs year after year, even if the latter remain even more concerned about cyclical elements such as inflation. However, we should note the greater sensitivity of Moroccan CEOs to climate risk, 5 points above world leaders (17% vs. 12% overall). Transforming, between external factors and deliberate actions 46% of Moroccan managers compared to 45% of global managers predict the disappearance of their company within 10 years if the operational model remains unchanged. While nearly half of leaders recognize the urgency of transformation, increased awareness of surrounding risks is evident this year. Moroccan leaders recognize the impact of growing external pressures and deliberate initiatives when it comes to transforming operations, value creation and delivery within their companies. Significant proportions plan to capitalize on these factors to build a foundation for sustainable transformation. 76% of managers in Morocco, compared to 81% globally, say that external elements have largely or very largely led their company to transform the way it creates, delivers or captures value over the last five years. On the podium of transformation vectors of the last 5 years, Moroccan leaders. cite technological change equally (41%) and the actions of competitors also at 41%, a factor recognized in larger proportions than their foreign counterparts (32%). But it is at the level of climate change that we observe an underweighted factor in Morocco (12%) compared to the rest of the world (22%). This factor takes up much more space in the minds of managers when they are asked to project its impact on change within the company in the three years to come. However, Moroccan leaders are not showing a wait-and-see attitude in their transformation approach. 80% of Moroccan companies have already undertaken actions that have impacted to a large or very large extent the way in which they created, delivered or captured value (Vs. 76% globally). The main focus was on adopting new technologies (59%), developing new products and services (59%), as well as establishing new strategic partnerships (49%). But the transformation exercise remains complex and subject to significant obstacles. Moroccan leaders, like their foreign peers, find themselves hampered in their desire for change by various obstacles, both internal and external to their organization. More than 2/3 of managers in Morocco say they are hampered to a large or very large extent by at least one factor in the transformation of their company. At the top of the ranking of obstacles to transformation, Moroccan leaders point to the regulatory environment, cited at 32%. The lack of internal skills comes in second place, followed by the multiplicity of operational priorities, the lack of technological capacity, and access to financing which is tightening. Two specific features this year: progress on climate issues and technological pragmatism As has been demonstrated, this 2024 edition reveals a very marked awareness of the issue of climate change among Moroccan leaders, who claim to integrate it more than ever into their future strategic vision. Mitigation initiatives, particularly those related to decarbonization, remain top priorities s. If last year, one in three managers planned to invest in decarbonization in the coming 12 months, today, even if we note notable efforts in favor of decarbonization initiatives in particular, the actions are still very incomplete and a more integrated consideration of these issues in the performance of the company remains to be done to encourage investments. Among the obstacles to decarbonization, the weaker performance of climate-friendly investments: 27% consider this element to a large or very large extent to be an obstacle to decarbonization, compared to 23% for the global average. Also, and unsurprisingly, there are still 71% in Morocco (59% worldwide) who do not accept lower rates of return for climate-friendly investments. And contrary to the global trend which places it first, in Morocco it is only in fourth position that we find regulatory complexity among the obstacles to decarbonization. On the technology side, Moroccan leaders have identified technological change as the main lever for transformation over the last five years. 41% of Moroccan leaders cite technology as an element having contributed to a large or very large extent to the transformation of their organization, compared to 46% internationally. However, 24% (compared to 18% overall) cite the lack of technological skills within their company as having hindered their transformation in the past. The other major trend with systemic and existential implications to consider is technological disruption. The study looked specifically at generative artificial intelligence, a technology that has all the characteristics to significantly reshape business practices. 79% of Moroccan managers say they have not adopted generative artificial intelligence in their company over the last 12 months. However, they easily recognize the changes that generative AI will bring about over the next 3 years. In terms of operations, the main benefit expected in the next 12 months is improved efficiency, both for the manager themselves and for their colleagues. Nearly 2/3 of Moroccan managers expect an increase of 5% or more in working time efficiency thanks to the adoption of generative AI. On the other hand, only 39% of them expect an increase in profitability of more than 5%, and 34% on an increase in turnover in the next 12 months. And like other subjects, Moroccan leaders remain more sensitive to the human factor. The main impact of the deployment of GenAI highlighted by 3/4 of Moroccan business leaders concerns the increase in skills and training in new skills of their staff. The sensitivity of managers regarding the upskilling and reskilling of employees exceeds that of their international counterparts by 10 points. Moroccan leaders also express fears about the dissemination of false information (54%). The same number believe that generative AI is likely to increase cyber security risks as well as legal liabilities.
