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Morocco, Top Investment Destination in North Africa: Study

Casablanca Finance City (CFC)

Rabat – Morocco has emerged as the top investment destination for private equity in North Africa, according to a report from the Emerging Markets Private Equity Association (EMPEA).

The kingdom attracted 51 per cent of all deals and 43 per cent of total capital invested in the sub-region between 2010 and 2014.

The vast majority of these deals (70%) came in three sectors: the industrials sector (which includes manufacturing and industrial transportation providers), consumer goods and consumer services.

“Moroccan start-ups operating mainly in the consumer services and technology sectors have received 14 investments over the last five years,” said the report.

With a Private Equity and Venture Capital penetration rate of 0.08 per cent of GDP in 2014, Morocco outperformed all countries in the MENA region, and of the 28 private Equity transactions across North Africa in 2014, 14 were in Morocco.

Morocco Private Equity accounted for 50 per cent of deals despite constituting less than 20 per cent of North Africa’s population.

“From the 1990s through 2014, Morocco quietly developed into a surprisingly rich ecosystem for venture capital and private equity,” says the report, adding that “the Moroccan Venture Capital and Private Equity has built up a current portfolio of well-governed, modern firms with regional potential and appetite for scale.”

According to the report conducted by EMPEA, a global industry association for private capital in emerging markets, investors who continue to ignore the Middle East and North Africa risk missing out on attractive investment opportunities backed by strong management teams.

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