Can Morocco Digitize Its Street Vendors? Experts Warn Against Haste

The Push to Digitize Street Vendors in Morocco

Industry and Trade Minister Ryad Mezzour has proposed a significant shift that would move street vendors from public spaces into the digital economy, suggesting online platforms as an alternative to traditional street-based trade. However, this idea faces skepticism from experts who question its feasibility, especially in the short to medium term.

During a speech in Parliament on Monday, Mezzour stated that the ministry has supported over 300 e-commerce platforms as part of efforts to offer alternatives for vendors. He argued that many traders have already started transitioning from street-based activity to digital channels. While acknowledging the new challenges this shift brings, the minister emphasized that it would be supported by new laws and measures aimed at integrating digitization into this type of trade and providing additional forms of support.

Despite these efforts, experts argue that the transition faces multiple obstacles. These include limited purchasing power, the nature of goods sold, and the digital literacy of vendors, which makes widespread adoption unlikely for now.

“Fully digitizing all forms of consumption is unlikely in the short to medium term, and even in the long term it remains uncertain,” said economic expert Mehdi El Fakir. He pointed out that consumers are unlikely to purchase low-cost goods online, such as items priced at MAD 10, when delivery fees can exceed the value of the product.

Digital literacy remains another major barrier. El Fakir noted that familiarity with digital tools varies widely, with younger generations more accustomed to using apps and social media, while many older vendors lack such experience.

“People in their 60s and small informal vendors cannot be expected to suddenly move to digital platforms,” he said, highlighting that many vendors do not own smartphones, struggle to afford mobile data, or are unfamiliar with digital tools altogether.

“If it happens, this kind of transition will take time and face significant obstacles,” he added.

When questioned in Parliament about the fact that not all Moroccans are familiar with the digital world, Mezzour acknowledged the vulnerability of certain groups but maintained that “Moroccans, young and old, are already familiar with it.” However, data suggests otherwise. According to the 2022-2023 report by the Supreme Audit Institution, digital illiteracy in Morocco is estimated at 56%.

About 17% of citizens do not have access to smartphones, alongside gaps in digital training and unequal access to internet networks due to limited coverage, poor service quality, or high costs. This reflects a broader context, as more than a quarter of Moroccan adults remain illiterate. The rate rises to around 47.5% in rural areas, compared with 17.3% in urban centers, despite decades of government efforts.

In addition, nearly 95% of informal workers in Morocco lack formal qualifications, according to a study published in the American Journal of Economics and Business Innovations.

Challenges in the Informal Sector

Beyond literacy challenges, the structure of the informal sector presents further complications. Rachid Sari, head of the African Center for Strategic Studies and Digitalization, noted that many street vendors operate outside formal systems, raising questions about whether they have the training or legal framework needed to transition into digital commerce.

“Will a legal status be provided so they can actually move into digital trade?” Sari asked. He also questioned whether vendors are organized into cooperatives or associations or have access to designated commercial spaces, noting that without such structures, implementation would be difficult.

“It remains unclear and hard to implement,” he said.

Last year, Mezzour mentioned that more than 86,000 street vendors had been integrated into the formal sector out of 124,000 identified nationwide under a national program carried out in coordination with the National Initiative for Human Development and local authorities. He added that the trade sector employs more than 1.6 million people, or 15.6% of the active population, and generates around MAD 151 billion in annual added value, but continues to face challenges linked to the expansion of the informal economy.

Street vending, while operating outside formal legal frameworks, remains a key source of income for many families and helps meet everyday needs in local communities, Mezzour said, emphasizing the need to organize the sector rather than exclude it.