Venture capital (VC) is increasingly recognized as a crucial lever for transforming Morocco into an investment and growth hub in Africa. In today's world, investment and growth are fundamentally driven by innovation, which opens new markets, enhances business competitiveness, and even transforms economic models.
Globally, venture capital, often referred to as "smart money," is seen as the best means to finance and support innovation through systemic mechanisms. These include active sourcing and refined selection criteria to identify the most relevant projects technically and economically, thorough pre-investment due diligence on all aspects of entrepreneurial projects to secure investments, tailored financial structuring and governance, daily monitoring and support, and follow-on investments to iterate models for optimal market fit and profitability.
In this context, VC plays a vital role in accelerating a nation's economic transformation by fostering the emergence of entrepreneurial talent, skills, and mindsets that create businesses and qualified jobs. It modernizes traditional sectors such as health, agriculture, mobility and logistics, energy, and education, while also accelerating the growth of tech and innovation sectors. This positions Morocco within the knowledge and innovation economy, ensuring a minimum level of technological sovereignty in strategic areas like AI, biotech, greentech, and fintech.
Despite a global economic climate marked by uncertainty, Morocco stands out in the VC landscape. The volume of venture capital has nearly halved worldwide, dropping from $670 billion in 2021 to $368 billion in 2024, and in Africa from $5.2 billion to $2.2 billion during the same period. However, Moroccan startups raised approximately $95 million in 2024, a significant increase from $33 million in 2023 and $26 million in 2022. This achievement has placed Morocco sixth in Africa for startup funding, although it still trails behind the "big four": Nigeria ($520 million), South Africa ($459 million), Egypt ($297 million), and Kenya ($221 million), but is close to Ghana, which raised $102 million.
While complete figures for 2025 are not yet available, Morocco ranked fourth in the MENA region in July 2025 with $7.5 million raised by ORA. The results are promising, with over 1,000 active startups in Morocco across strategic sectors for the economy. Traveltech companies like NUITÉE enhance the tourism industry, fintech firms such as ORA and CHARI improve digital financial services and financial inclusion, while startups like Cloudfret and Weego modernize logistics and mobility. Agritech companies like Yolla Frech, Iziry, Sowit, and Arwa are adapting agriculture to climate change.
Looking ahead, VC is expected to accelerate the development of high-value industrial sectors, including automotive, aerospace, renewable energy, green chemistry, green hydrogen, and information technology, increasingly oriented towards advanced industrialization. This will be supported by a startup ecosystem operating within the framework of Industry 4.0, as well as the energy, water, and agricultural transitions driven by green tech, clean tech, and agritech startups.
Three main drivers are essential for this dynamic shift towards an innovation economy: high-value industrial sectors that can support innovative entrepreneurial initiatives based on real comparative advantages, a national innovation system that intelligently integrates all stakeholders, and a favorable culture for creativity and interdisciplinary analysis.
To attract more international investors to Moroccan VC, four concurrent actions are necessary: facilitating cross-border integration of the Moroccan venture capital industry, addressing tax friction issues, simplifying currency transaction regulations, and standardizing financial instruments commonly used by international investors.
Additionally, it is vital to encourage specialization among Moroccan VCs in key sectors aligned with industrial policies, promote the creation of business angel networks, and incentivize territorial diversification of investments within Morocco. Finally, removing liquidity barriers for Moroccan VCs will help attract institutional and family office investors who remain skeptical about the liquidity and profitability of this asset class in Morocco.
By implementing these strategies, Morocco can enhance its position as a leading innovation hub in Africa and attract more international venture capital investment.
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