Signature of a memorandum of understanding for the launch of innovative financing mechanisms for startup funds

HIBAPRESS-RABAT

The Ministry of Digital Transition and Administration Reform (MTNRA), the Mohammed VI Fund for Investment (FM6I), the Caisse de Dépôt et de Gestion (CDG), and the Delegate Ministry in charge of the Budget have signed, Monday April 15 in Rabat, a memorandum of understanding for the launch of innovative financing mechanisms for startup funds during the Selection Process to be launched by the FM6I.

The signing ceremony took place in the presence of Ms. Ghita MEZZOUR, Minister Delegate to the Head of Government in charge of Digital Transition and Administration Reform, Mr. Fouzi LEKJAA, Minister Delegate to the Minister of the Economy and Finance, in charge of the Budget, Mr. Mohamed BENCHAÂBOUN, Director General of the Mohammed VI Fund for Investment and Mr. Khalid SAFIR, Director General of the Caisse de Dépôt et de Gestion.

This memorandum of understanding reflects the common desire to boost the startup ecosystem in Morocco by promoting the emergence of a national seed capital and venture capital industry. It aims to launch an innovative financing offer for startups in the critical phases of their growth.

This financing offer is part of the national digital development strategy, and more mainly the “Startup Morocco Offer” which provides for a continuum of financial and technical support throughout the life cycle of startups, in particular through granting of living grants, subsidies, loans and technical assistance to operators.

As part of this agreement, a call for expressions of interest will be launched by the FM6I in partnership with the CDG and the MTNRA for the selection of management companies responsible for creating and managing funds dedicated to startups. FM6I and CDG will jointly invest in jointly selected startup funds. For its part, the MTNRA will set up a mechanism to cover first losses in order to encourage and develop the investment of these funds in Moroccan startups.

This memorandum of understanding is part of the High Guidance of His Majesty King Mohammed VI, May God Help Him, who on the occasion of his speech on March 21, 2018 during the Extraordinary Summit of Heads of State and Governments of the African Union on the continental free trade area quoted, “digital is changing the face of our continent, driven by an inventive, creative and daring youth. This digital leap is the result of young startups active in the fields of finance, telecoms, industry and agri-food, to name just these areas. It is often a young and low-income population that is at the heart of this innovation process; it must therefore be at the heart of our public policies.”