Morocco’s Government Council adopted on Thursday draft law 76.20 establishing the Mohammed VI Investment Fund.
Minister of Economy Mohamed Benchaaboun presented the legal text during a videoconference meeting chaired by Head of Government Saad Eddine El Othmani.
King Mohammed VI announced the creation of the investment fund during his Throne Day speech on July 29.
“Some 120 billion dirhams will be injected into the national economy, representing 11% of our GDP — a proportion that will place Morocco at the forefront of the most enterprising countries in terms of post-crisis stimulus packages,” the King said.
The recently-adopted bill establishes a joint-stock company called “Mohammed VI Investment Fund.” The state budget will allocate MAD 15 billion ($1.65 billion) to the fund. Several public and private institutions, notably banks, will also contribute to the fund.
The Mohammed VI Investment Fund mainly seeks to finance major investment projects through partnerships with the private sector. It also aims to contribute, through thematic funds, to the capital of small and mid-sized businesses.
The fund will directly contribute to the capital of large public and private companies that operate in prioritized fields through several financial means, such as loans and share purchases.
The Mohammed VI Investment Fund will prioritize projects in the fields of industry, infrastructure, agriculture, and tourism. The criteria to select projects that will benefit from support include innovation, growth potential, and impact on population.
According to a previous presentation by Minister Benchaaboun, the total budget of the fund includes two parts: MAD 75 billion ($8.26 billion) of state-guaranteed loans and MAD 45 billion ($4.96 billion) allocated to a recovery fund.
