Morocco has just unveiled a 240 million dirham ($24 million) fund as part of its grand “Digital Morocco 2030” strategy, setting the stage for what it hopes will be a renaissance for homegrown startups. The announcement, made by Ghita Mezzour, Minister for Digital Transition and Administrative Reform, during the 6th African Digital Summit in Casablanca, is the latest effort to breathe life into Morocco’s tech ecosystem. But while the rhetoric is bold, the fund itself, given the realities of global startup financing, feels more like a polite nudge.

Mezzour was quick to link this new fund to the country’s broader digital ambitions, emphasizing that local innovation would be the cornerstone of Morocco’s economic future. The fund aims to stimulate demand for innovative services, create outsourcing opportunities, and push Moroccan startups onto the international stage. “We are committed to supporting our local startups by opening new markets and ensuring their ideas gain a foothold internationally,” Mezzour said, her optimism shining through.

Yet, in a world where Kenya pulled in a cool $800 million in startup funding last year, $24 million seems more like an appetizer at a banquet where other countries are feasting on the main course.

Digital Morocco 2030: The Vision

The $24 million fund is part of a broader, ambitious roadmap laid out in the recently-unveiled “Digital Morocco 2030” blueprint. The plan sets lofty targets: the creation of 1,000 startups by 2026 and 3,000 by 2030, backed by an expected $200 million in startup funding by 2026 and a more ambitious $700 million by the end of the decade. Add to this a commitment to train 100,000 young Moroccans in digital skills, and you have a strategy that aims to transform Morocco into a regional tech powerhouse — or at least, that’s the dream.

Ghita Mezzour called on Moroccan private and public sectors alike to “trust local startups,” pushing the notion that homegrown companies can be engines of growth and innovation. The government also announced plans to introduce a “Moroccan Startup Label” and streamline legal frameworks to make it easier for new businesses to launch. Incubation hubs, partnerships with both national and international players, and a slew of reforms are all part of this strategy.

But ambitions often look best on paper, and the real challenge lies in execution. Morocco’s history with startup initiatives has been littered with big promises that haven’t always led to tangible outcomes.

The Reality Check

As bold as Morocco’s plans sound, they face an undeniable reality check. According to the Global Startup Ecosystem Index 2024, Morocco ranks 92nd globally — hardly a beacon of startup dynamism — and 10th in the Arab world. In 2023, Morocco’s startups attracted a paltry $17 million in funding, a drop in the ocean compared to the startup powerhouses of Kenya and Egypt, which secured $800 million and $640 million, respectively.

This isn’t just about numbers. It’s about a fragile startup ecosystem that has struggled to gain traction, in part because of an unfriendly regulatory environment and a severe lack of financing. While initiatives like Technopark and the Forsa program have attempted to support entrepreneurial ventures, the consensus among experts is that these efforts are falling short.

Zakaria Fahim, CTO of Korair — a startup that is developing multifunctional drones for agriculture — put it bluntly. “What Morocco needs is a clear distinction between startups and SMEs. Startups grow fast, and they need a completely different kind of support,” he said. Fahim argues that while there’s no shortage of ambition, what’s missing is the infrastructure for scaling these businesses, both at home and abroad.

Ayman Stitou, co-founder of Scarabot, a company creating port-cleaning robots, echoed these concerns. He pointed out the lack of technical support as a critical barrier. “The programs we have — ‘Forsa,’ ‘Tamwilkom,’ and even the National Initiative for Human Development (INDH) — are helpful but aren’t designed for tech startups. There’s a huge gap between the research phase and industrialization,” Stitou said. “Without expertise and proper funding, we struggle to go from idea to market.”

Digital Infrastructure Woes

And it doesn’t help that Morocco’s digital infrastructure is still playing catch-up. While the country has made strides in internet connectivity and digital services, it remains behind the curve compared to other startup ecosystems in Africa. For startups that depend on seamless online transactions and services, the current infrastructure is a constraint, not an enabler.

Stitou lamented how the slow pace of Morocco’s digital transformation limits the ability of startups to scale. “We need to monetize online, but the digital landscape isn’t there yet,” he added. These growing pains aren’t unique to Morocco, but they’re more acute in a country trying to punch above its weight in the African tech scene.

The Competition Factor

If that wasn’t enough, Moroccan startups also face increasing competition from international players who are rapidly entering the local market. Recently, Network International, the digital commerce enabler in the Middle East and Africa, announced its expansion to the north African country. While the influx of foreign companies can drive innovation, it also threatens to eclipse local startups, whose funding and technical know-how lag far behind their international counterparts. There’s growing concern about whether Morocco’s push for technological sovereignty can withstand the pressure from more advanced foreign competitors.

The recent “CGEM for Tech Founders” initiative, launched by the General Confederation of Moroccan Enterprises (CGEM), aims to streamline administrative processes and offer networking opportunities, which is a step in the right direction. But can this new platform make up for years of underfunding and underdevelopment?

A Long Road Ahead

Morocco’s startup ecosystem is at a crucial juncture. The government’s $24 million fund is undoubtedly a positive development, but it’s a small drop in a very large ocean. The big question is whether this initiative will be enough to address the deep-rooted challenges that have stunted the country’s tech ambitions. For Moroccan startups to thrive, experts say the ecosystem needs much more than just occasional funding injections — it requires comprehensive reforms, especially in areas like digital infrastructure, financing mechanisms, and regulatory frameworks.

Optimists might point to the government’s renewed focus on startups as a sign that change is coming. But skeptics will note that Morocco’s history is riddled with well-meaning initiatives that fizzled out long before they could make a meaningful impact.

Whether Morocco can deliver on its ambitious vision of becoming a regional tech hub by 2030 remains to be seen. For now, the journey has begun, but it’s a long, steep climb from here.