The mid-term review has allowed the Ministry of Finance and the World Bank to identify areas for improvement and the measures to be deployed so that the IFI can fully achieve its objectives.
Following the mid-term review mission, conducted in collaboration with the Ministry of Finance, the World Bank was pleased with the achievements of the Innov Invest Fund. According to the World Bank, which funded this fund managed by “Tamwilcom” on behalf of the State, through a loan of 50 million dollars, “Innov Invest remains a satisfactory project, making it possible to mobilize 47.3 million dollars of private capital.from 15 local and international investors for the benefit of Moroccan startups “, even exceeding the 30 million dollar goal set for 2023.
The World Bank, in collaboration with the Ministry of Finance, has just produced a new progress report on the Innov Invest Fund (FII). Following the joint mission, held from October 2021 to February 2022, “Innov Invest remains a satisfying project, raising $ 47.3 million in private capital from 15 local and international investors for the benefit of Moroccan startups “, says a World Bank report, of which” Le Matin “holds a copy. And” Despite the negative effects of the Covid-19 crisis on the entrepreneurial ecosystem in Morocco, the project continues deployed, thanks to the response of the Ministry of Finance and “Tamwilcom” “, it is underlined.
As a reminder, the Bretton Woods Institution is the main funder of the Innov Invest scheme, managed by “Tamwilcom” (Ex CCG), through a loan of 500 million DH (50 million dollars). Officially launched at the end of October 2017, FII aims to increase the supply of innovation and seed funding for innovative project leaders and start-ups in their early stages of development, primarily through mobilization of private sector funding. This system aims to ensure a continuum of funding for project leaders and start-ups, from idea stage to growth.
According to the development report, “Tamwilcom” has 19 accredited partners (3 fund managers and 16 incubators) with a portfolio of 477 companies as of December 31, 2021. The total funds received by the beneficiaries of these companies amount to at 24.7 as of Dec. 31, 2021, i.e., $ 24.3 million for 17 equity transactions, $ 6.8 million for 381 seed grants, and $ 3.1 million for 79 soft loans. In addition, “Tamwilcom” released $ 2 million from IFI to provide technical assistance to three venture capital fund partners.
Compared to the goals set for 2023, in terms of mobilizing private capital, the 24.3 million dollars made by Innov Invest in the three funds made it possible to mobilize an additional 47.3 million dollars for their closure, which exceeded the goal. of $ 30 million. In addition, the targeted number of supported companies that initiated an innovation reached 432, which exceeded the target of 100. Conversely, the number of startups receiving private equity funding under the project was not progressing. as fast as expected with 17 startups from a target of 60 in 2023. According to the report, this is due to the crisis in Covid-19, the delay was noted on the part of Business Angels, but also due to the structuring of three fund operations supported by Innov Invest and the dissolution of the Green Innov Invest Fund (GNII). It should be borne in mind that for the launch of “FII” activities, private partners are selected based on specifications.
Thus, four management companies were first selected to form and manage seed and venture capital funds (Azur Innovation, Seaf Morocco Growth Fund, Maroc Numeric Fund II and Green Innov Invest. The mid-term review allowed Ministry of Finance and the World Bank to identify areas for improvement and measures to be deployed for the IFI to fully achieve its objectives.Thus, additional programmatic support and a funding instrument should be used at the stage of planning.seed and acceleration to build a continuum of funding and advice for startups at all stages of their lifecycle.Also, the internal processes of the FII mechanism will be improved, especially to facilitate funding and investment through of intermediaries.
In addition, the government is committed to ensuring that incubators keep important players at the top of the entrepreneurial path and that have weakened the Covid-19 crisis. It also undertakes to develop a legal and regulatory framework to improve the business environment. The government and the World Bank are now considering the implementation of the specified recommendations and deciding whether to strengthen the impact of the project through the use of restructuring or additional financing.