Morocco Unveils USD 269 M Fund-of-Funds To Boost Startup Investment

Morocco has activated a MAD 2.5 B (USD 269 M) fund-of-funds to stimulate its startup ecosystem, marking one of North Africa’s biggest state-backed pushes into venture capital. The deal brings together the Ministry of Digital Transition, the Mohammed VI Investment Fund (FM6I), CDG and state-guarantee agency Tamwilcom.

Rather than acting purely as an LP, Morocco is using Tamwilcom to de-risk private investors through first-loss guarantees, effectively insuring early losses to unlock capital in a cautious investment climate. The vehicle will channel funding through nine selected fund managers across pre-seed, seed, and Series A, addressing the region’s persistent funding “valley of death”.

The move sits within FM6I’s broader investment strategy, which mobilised nearly USD 1.9 B earlier this year across infrastructure and SME-focused funds. With five foreign managers expected to build local teams and ESG requirements baked in, Morocco is betting that imported expertise and risk-sharing will help elevate its tech ecosystem and accelerate capital flow.