Fundraising in Africa: Morocco wants its share of the cake

Fundraising is on the rise on the African continent and Morocco, which leads dance in North Africa, wants to give itself a way to get its share of the ever -growing pie.

After a few years of torpor, the African tech ecosystem is finally starting to wake up. As networks of investors and accelerators evolve across the continent, new alternative sources of capital and support are emerging. As a result, in 2021, against a backdrop of global growth in venture capital funding, African tech will grow faster than anywhere in the world, with double activity than last year and more than three times the amount invested, reaching at 5.2 billion dollars. , announced in early February Partech Africa.

The VC fund focused on tech startups in Africa, founded in San Francisco and Paris and based in Dakar, Senegal, pointed out that compared to 2020, activities in 2021 will double and the amounts invested will triple and the Fintech represented 63 % of financing and Nigeria 34 % for the same period. In North Africa, Morocco stands out and is a figurehead in this area. 15 Moroccan start-ups made a total of 17 deals for a total value of $ 33 million last year from a total of $ 108.8 million for the entire region.

If the collection of startups in North Africa seems ironic because of the enormous potential in the region, the region’s growth rate, 443% annually through 31 transactions, shows how active countries in North Africa are. . The performance of technology startups in Moroccan is largely related to the 212 Founders program, carried out by CDG Invest.

Launched in September 2019 with the aim of participating in the creation and growth of technology startups with an international vocation from Morocco, the latter has made a significant contribution to the dynamics of venture capital (VC) financing in Morocco.

Just one year after the program’s implementation, the country moved from 12th to 8th place in the Partech ranking of fundraisers for Africa in 2020. The 212 Founders program therefore supports the efforts of its oldest, the Maroc numeric fund (MNF), created in 2009 by CDG, in collaboration with BCP, BMCE Bank of Africa and Attijariwafabank.

In 2021, the reference investment fund to technology startups raised 6 million dirhams for Yalla Xash, a fintech fund transfer service between North America and Africa, and 4 million dirhams for Damanesign, which a startup publisher of digital trust solutions, such as electronic signatures, electronic stamps and time stamps.

For greater democratization of investment and seed funding in Morocco, whether fintech or non-tech companies, we will need to bring out other players along with those we have just mentioned and other platforms such as Moroccan Entrepreneurship Network (REM) which provides “honorary loans” to entrepreneurs and Eiréné4Impact, which offers financing to start-ups, not to mention the OCP Entrepreneurship Network which also invests in the startup niche. Tamwilcom’s product offering, which is like hotcakes, goes in this direction.

In 2021, the commitments of the Moroccan State-owned public limited company reached a historic record of 24.9 billion dirhams, an increase of 35% compared to the previous year and a volume of loans of 43.7 billion dirhams.

For this financial year, company activity in favor of firms mainly benefited the trade distribution sectors (30%), followed, tied at 23%, by industries and construction, which recorded a noticeable jump and a total of 65,400 in terms of the number of corporate finance transactions. This is a significant increase of 90% compared to 2020.

Khadim Mbaye / ECO Inspirations

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