Investment capital exceeds 3 billion dirhams and revives financing for small enterprises

The results of a study completed by Grant Thornton’s office, under the supervision of the Studies and Statistics Committee of the Moroccan Association of Capital Investors (AMIC), revealed that mobilized capital exceeded the ceiling of 3 billion dirhams, while during the period between 2018 and 2023, these capitals reached a cumulative level of 9.8 billion. AED, which represents double the amount of money mobilized between 2012 and 2017.

According to the same study, cross-regional funds represented 78 percent of the total capital mobilized in Morocco since 2012, preferring foreign legal forms for reasons related to currency and taxes, compared to local funds that represented 22 percent during the same period and preferring Moroccan legal structures, especially in the form of aesthetic employment bodies. for capital (OPCC).

International development agencies, banks and asset management companies contributed about 70 percent of the capital mobilized between 2018 and 2023, while the share of Moroccan investors increased significantly, rising from 25 percent during the period between 2012 and 2016 to 45 percent between 2018 and 2023, noting that last year It witnessed a record growth in investments, jumping to 2.5 billion dirhams, achieved by 12 management companies. These investments included 25 new companies and 16 reinvestments.

Entrepreneurial revival

Since its emergence fifteen years ago, venture capital has contributed significantly to financing small and medium enterprises, supporting more than 250 companies and mobilizing about 12 billion dirhams in financing, as this industry has proven its effectiveness, especially in helping and supporting enterprises to overcome difficult economic emergencies, through… Leveraging capital investment to achieve higher financial performance.

Abdel Aziz Marahi, a research professor in financial engineering, said in his comment to Hespress on the results of the new study, that “despite these successes, investment capital is struggling to attract a sufficient number of companies,” explaining that this financing option offers much more than just pumping money, as it It represents a comprehensive transformation for entrepreneurship, pointing to the role of the Mohammed VI Investment Fund in starting a new era for venture capital, through a series of initiatives aimed at stimulating this industry, including the selection of 17 management companies. These measures are expected to allow the venture capital sector to triple its size over the next five years, with an initial commitment of 6 billion dirhams by the fund.

Marahi added that one of the priorities of the Sixth Investment Fund is to adapt its offer to the special needs of the market, stressing that “in the context of achieving this goal, thematic funds are being created covering various economic sectors, in addition to planning to launch a quasi-equity financing tool to help companies with low capital Access to investment capital, as this intermediate product, which has a budget of 4 billion dirhams, will complement bank financing and support investment projects.”

Economic growth

Venture capital plays a crucial role in accelerating economic advancement by supporting innovation, creating job opportunities and stimulating economic growth, despite the risks associated with it. These challenges can be overcome by improving the regulatory environment and providing appropriate incentives, while adopting the right policies, noting that this Financing choice is a powerful engine for economic growth and prosperity.

In this regard, Salah Ismaili, a financial analyst, explained in a statement to Hespress the importance of providing venture capital financing to emerging companies in their early stages, as this financing is provided by investors looking for large returns on their investments, stressing that in addition to financing, investors often provide Experience and guidance for companies in the aforementioned category, pointing to the advantages of the financing option in economic advancement, by supporting innovation, especially by financing companies that provide new and innovative solutions, which leads to enhancing innovation in the economy.

Ismaili stressed the role of the aforementioned financing option in stimulating economic growth, by increasing productivity, as emerging companies often provide solutions, products and services that raise the level of productivity in various sectors, noting its importance also in raising the gross domestic product, as the growth of the aforementioned companies leads to… Increasing production, improving the investment environment, and enhancing the Kingdom’s attractiveness to foreign investors, which will help accelerate the flow of capital into the local economy, and thus support economic growth.