In a promising move to improve access to financing for startups in Morocco, a significant agreement has been signed in Rabat, the capital of Morocco. This memorandum of understanding, endorsed by key players in the Moroccan economy, establishes an innovative multi-stakeholder fund to support startups in Morocco.
Major figures from government and finance came together on Monday, April 15th, in Rabat to foster the growth of Moroccan startups. Among the signatories were Ghita Mezzour, Delegate Minister in charge of Digital Transition and Administrative Reform; Fouzi Lekjaa, Delegate Minister to the Minister of Economy and Finance, in charge of Budget; Mohamed Benchaaboun, CEO of the Mohammed VI Fund for Investment; and Khalid Safir, CEO of the Deposit and Management Fund. The memorandum serves as a framework to encourage significant investments, both domestic and international, in the Moroccan startup ecosystem.
Explaining the Financing Strategy
According to Minister Mezzour, this agreement “develops innovative financing mechanisms to enable startups to access more funding throughout their development, thus opening doors to innovation and the creation of digital solutions for the Moroccan and global markets.” This initiative, according to Mr. Benchaaboun, will ensure “financing tailored to the specificities of startups, whose financing methods differ from those of small and medium-sized enterprises.”
Under the agreement, approximately 1.5 billion Moroccan dirhams (MMDH) (USD$148 million) will be mobilized by the public sector, with a prospect of attracting up to an additional 1.5 MMDH in investments. Risks will be managed through guarantee mechanisms funded by the state, demonstrating a robust commitment to transforming the Moroccan entrepreneurial landscape.
Mr. Safir emphasized the importance of this partnership, stating that it “reflects the importance attached to creating an innovative, dynamic, and competitive ecosystem that will position the Kingdom as a leader in innovation and entrepreneurship in Africa and beyond.” The initiative aligns with Royal High Directives that promote innovation and continuous support for emerging Moroccan enterprises.
This memorandum of understanding, that delivered for the first time, a government-backed fund not only proposes simple financing but seeks to create a conducive environment where startups in Morocco can excel and innovate, actively participating in the global digital economy.
