Morocco Launches State-Backed Mechanism to Close Funding Gap in Startup Ecosystem
Morocco has rolled out a new financing mechanism aimed at giving its startup ecosystem a stronger lift, marking one of the flagship moves under the Digital Morocco 2030 strategy.
The initiative was formalized on November 21, 2025, in Rabat, where Minister Delegate for Digital Transition and Administrative Reform Amal El Fallah Seghrouchni presided over the signing of a broad partnership agreement.
The agreement brings together the Ministry of Digital Transition and Administrative Reform, the Ministry of Economy and Finance, the Mohammed VI Fund for Investment, CDG Group, and Tamwilcom, marking a coordinated effort to accelerate the country’s innovation landscape.
The mechanism is built to fill a persistent funding gap in Morocco’s early-stage market. Although interest in the sector has grown, financing remains limited, especially for seed and growth phases.
To address this, the program targets investment funds that support startups from seed stage through expansion, providing two forms of risk-mitigating support: a first-loss coverage tranche and direct commitments by Tamwilcom.
The government has committed the equivalent of USD 39 M (AED 400 M) to a catalytic fund designed to reduce risk for venture investors.
The program offers either first-loss coverage or direct commitments through Tamwilcom, both modeled on international venture capital standards to encourage funds to step into the market earlier and with greater capacity.
The new mechanism forms a central component of the Digital Morocco 2030 strategy, which aims to reinforce the pipeline of emerging companies and expand access to financing.
The ambition is to expand the number of startups in the country to about 3,000, mobilize up to USD 753 M in new capital (AED 7 B), and produce one or two unicorns by the end of the decade.
These ambitions come at a moment when the sector is showing signs of momentum. Moroccan startups raised USD 26 M in 2022, climbed to USD 93 M in 2023, and recorded USD 82 M in 2024, according to industry data.
These fluctuations highlight rising investor interest while simultaneously underscoring the urgent need for more reliable, structured financing.
With the Moroccan market still short on early-stage capital, officials say the catalytic layer is designed to draw investors into the ecosystem sooner and at higher ticket sizes.
Minister El Fallah Seghrouchni emphasized that the mechanism reflects directives from King Mohammed VI, who has called for stronger digital sovereignty and a more coherent national innovation system. She noted that while the country is seeing more entrepreneurial activity, too many high-potential companies struggle to reach scale because investors remain cautious about early-stage risk. By absorbing part of that exposure, the new fund is intended to ease those concerns and support startups through the stages where capital is most difficult to secure.
Officials from the Mohammed VI Fund for Investment, CDG, and Tamwilcom echoed this position, noting that the new structure introduces practical risk-sharing mechanisms that can make the Moroccan market more appealing to private capital. They pointed out that while entrepreneurial momentum is growing, the lack of financial depth continues to prevent many promising companies from advancing beyond early stages. The mechanism, they said, is intended to close that gap.
With the agreement now in force, Morocco is signaling a push toward faster, more coordinated ecosystem development. The alignment between public policy, institutional investment, and private sector participation reflects a shift toward a more active model of economic planning. If the mechanism succeeds in attracting the capital it seeks, the country will be positioned to strengthen its status as a regional hub for technology and innovation.
