While Small and Medium Enterprises count for 95 percent of all Moroccan companies and half of the country’s employment, capital continues to be directed mostly towards large companies.

Access to finance plays an important role in ensuring sustainable economic growth. Over the past few decades, Morocco has worked hard to build up its financial sector, which now offers a variety of banking solutions to a wide range of clients. However, lack of existing investment capital for early stage investors and businesses continues to present a major challenge for Morocco in meeting its development goals.

USAID Response

USAID designed the Middle East and North Africa Investment Initiative (MENA II) to unlock equity capital, deploy targeted technical assistance, and offset investment risk by providing investment insurance. The regional implementation of MENA II is planned to last for 20 years across several countries in the region, including Morocco.

By partnering with Small Enterprise Assistance Funds (SEAF), USAID has established an independent Moroccan Investment Management Company called Wise Venture Capital (WVC), which is working with incubators, angel funds, and venture capital funds to co-fund and secure necessary capital for growing Early Stage Businesses in Morocco. Furthermore, this program will offer technical assistance to strengthen the capacities of young and innovative Moroccan entrepreneurs to sustainably build their companies.

Results Achieved

• Wise Venture Capital is legally established and fully operational.
• By leveraging $3 million from USAID, WVC has raised an additional $15 million in capital.
• WVC mobilized private capital owned by Moroccan angel and equity investors and venture capitalists to support new business start-ups and Small and Medium Enterprises (SMEs) in the early growth stages.
• WVC secured necessary capital for growing a number of skilled, young, and innovative Moroccan entrepreneurial companies.
• WVC is contributing to the development of a Moroccan investment ecosystem, and encouraging increased equity investment in early stage business.