The venture capital market in Morocco is experiencing a surge in investments, with more than 3 billion dirhams mobilized in 2023 alone, according to a study by consulting firm Grant Thornton.
Total investments have risen to 9.8 billion dirhams between 2018 and 2023, double the amount raised between 2012 and 2017.
Foreign investors play a significant role, contributing approximately 70% of the capital mobilized between 2018 and 2023. The participation of local investors is also increasing, from 25% previously to 45% in recent years.
Venture capital in Morocco is increasingly focused on young companies. In 2023 alone, 25 new companies received funding, and 16 companies received reinvestments.
This growth in venture capital translates into a positive economic impact. More than 250 companies benefit from VC funding, amounting to a total of 12 billion dirhams in mobilized funds.
This sector plays a crucial role in helping young companies overcome challenges and achieve better financial performance.
The government is actively involved in promoting the venture capital sector.
The Mohammed VI Investment Fund aims to triple the size of the sector within the next five years through a series of initiatives. These include selecting qualified management companies and an initial investment of 6 billion dirhams.
Looking ahead, there are several strategies in place to promote further growth. Thematic funds will be created to serve specific economic sectors. Additionally, a new “quasi-equity” financing instrument is planned to support companies with less capital. Ongoing improvements in regulations and incentives are also seen as crucial to attract more companies to the venture capital market.
Venture capital offers numerous benefits for the Moroccan economy. It stimulates innovation and employment while promoting economic growth by supporting promising young companies with high growth potential. Besides financial resources, experienced investors often provide valuable guidance to these young companies.
Moreover, VC-backed companies can contribute to increased overall economic productivity and a rise in GDP. They also improve the investment climate, making Morocco more attractive to foreign capital. This ultimately leads to a stronger inflow of resources into the local economy, further supporting economic growth.
MOROCCO WORLD NEWS
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