Morocco’s investment sector is set to grow significantly in the coming years. The government is taking measures for this emerging market. In particular, investment in startups and private equity is being promoted.
Mohammed VI, King of Morocco, launched the Investment Charter in 2022, an investment pact that aims to increase private investment from one-third to two-thirds by 2035.
The Charter has led to success since its publication, with 15 billion dollars worth of projects interested in investing in Morocco. And the horizon is looking brighter by the day. Take the case of Mediterrania Capital Partners. This is a venture capital firm for North African and sub-Saharan companies, which currently manages assets estimated at 740 million euros and has declared that it will invest more than 300 million dollars in different Moroccan companies over the next five years.
The Moroccan Financial Pole is Africa’s leading financial centre. It is in its second phase of expansion and is attracting more and more applications from private equity firms operating in the local market.
As reported by the Moroccan Association of Equity Investors, funding provided by investors in Morocco has reached 1.07 billion dollars in 250 different companies over the past fifteen years. Compared to last year, the Kingdom managed to increase capital by more than 100 million dollars.
This increase in investment is undoubtedly leading to a more prosperous Morocco. The internal funds of Moroccan companies had been characterised by their weakness because they could not easily find sources of financing. What is the solution to this problem? Precisely the new investment situation that is foreseen for the coming years.
With the development of investment, the country will be one step closer to listing on the stock exchange and enjoying a more active financial market. Currently, 77 Moroccan companies are listed on the stock exchange, and by 2035, if the plan comes to fruition, there will be more than 300. According to the latest report by Standard & Poor’s, a leading US financial market information company, the Moroccan economy will grow by around 3.6% between 2024 and 2027.
As the president of the General Confederation of Moroccan Enterprises, Chakib Laalj, pointed out, the private sector is now turning to investment funds as the main solution to financing. But, as he pointed out, this is not only because of the amount of revenue that can be raised, but also because of the local and external partnerships that they generate in this way.
As for Morocco’s investment funds, it is worth mentioning that, for this project, the role of the Mohammed VI Fund will be crucial. It is estimated that it will open sectoral funds with which investments will be financed to the tune of 2 billion dollars by 2029. The first investor will be the fund itself, providing a third of the amount.
From this fund (and from the sectoral funds), they will try to raise 15 billion dollars. This capital would be directed by companies. This would generate a very powerful attraction for national markets, but also for international markets. It would be another step in an era of undoubted prosperity.
Last February, TI Ensay, a platform dedicated to market analysis, published the results of a survey showing that foreign investment has increased in the Moroccan kingdom. Moreover, Morocco is the second country in Africa (after Egypt) and ninth in the Arab world in terms of foreign investment.