BMCE Capital Investment, part of the BMCE Capital Group, on Tuesday announced the launch of its first venture capital dedicated to financing Moroccan startups.
The new MAD 50 million ($4.5 million) fund underlines BMCE Capital Group‘s plan to support Moroccan startups in the seed phase.
Also the upcoming months, the fund is set to raise money from renowned Moroccan investors and key players in the economy to meet the targeted capital.
Besides securing necessary funds for the local startup ecosystem, the BMCE venture capital is expected to connect its portfolio of startups to an extensive network of Moroccan and global investors.
On July 29, Morocco’s Capital Market Authorities (AMMC) approved the creation of the new fund which will be partially financed by BMCE Group, one of Morocco’s leading financial institutions. The venture enjoys the damane capital risk guarantee granted by the National Company for Guarantee and Business Financing (SNGFE).
Moroccan startup ecosystem
Morocco’s startup ecosystem is gradually emerging as a leading regional hub partially thanks to the expansion of a few Moroccan startups, such as chari, in Francophone Africa.
Moroccan youth are embracing the entrepreneurial spirit. This acceptance along with the launch of nationwide incubator programs have helped expand the scope of the local startup ecosystem with Fintech companies dominating the Moroccan and African scene.
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The urgent need to address pressing issues such as failing public services and the repercussions of climate change further led to the increase in innovation in the agriculture, education and health sectors to improve living conditions.
Global accelerators such as plug and play, have entered the Moroccan market to support the growing startup ecosystem. Meanwhile, local financial institutions have realized the need to support innovation, research, and entrepreneurship to advance local economies and address the issue of unemployment. In March, for instance, Morocco’s Al Mada holding launched Africa’s largest venture capital to invest in fast-growing startups.
As Morocco provides “affordable and stable” conditions for entrepreneurs and startups, particularly in the fintech and e-commerce sectors, the country currently hosts the sixth largest startup ecosystem in Africa and second in North Africa.
The Moroccan stance is further underscored by the growing number of startups, particularly in the economic capital, Casablanca, which recently ranked as the top regional challenge of MENA’s biggest startup hubs such as Cairo, Dubai, Riyadh, and Tel Aviv.
SOURCE: Morocco news