Rabat - Moroccan startups are having a hard time getting funding despite reported efforts to promote technology-related startups.
Rabat – Moroccan startups are having a hard time getting funding despite reported efforts to promote technology-related startups.
As Morocco stretches its financial might and technical expertise across Africa and plans to reach a broader audience at the global level, the Moroccan government has listed investments in high tech projects among its policy priorities
According to l’Economiste, however, innovative Moroccan project bearers have limited access to financial means to materialize their ideas.
Despite government-assisted initiatives to boost entrepreneurship and information technology-related projects, l’Economiste reports that only 10 percent of Moroccan start ups have had relatively easy access to capital funds.
The remaining percentage faces structural dysfunction in the institutions supposed to oversee the allocation of funds and an “incoherent public policy” that complicate access to investments for startups.
Risk-averse investors sometimes tell project bearers that they prefer to place their money in limited companies—where owners are responsible for their debts to the extent of investment—rather than in capital risk projects like startups, where there is a high risk of losing the money invested.
As innovation is highly correlated with risk-taking, l’Economiste noted, one consequence of Moroccan investors’ risk-averse attitude is that innovative but risky projects almost never get funded.
With the advent of information capital technologies and an increasingly digitized global economy, the newspaper added that Morocco’s financial markets should ease the funding process for startups and ensure the kingdom’s smooth and timely integration into the prevailing financial system.
“Mutual efforts are needed,” wrote l’Economiste, calling for collaboration between young innovators and investors to “change the [sector’s] current direction” and prepare Morocco’s technology sector for the challenges of the digitized economy.