Rabat – A large Israeli law firm sees “huge potential” for the growth of Morocco’s high-tech start-up industry.
In 2021 funding for these start-ups in Morocco reached an all-time high of $29 million dollars (MAD282 million), an increase from $11.2 million (MAD108.9 million) in 2020 and $617,000 (MAD5.99 million) in 2019.
M. Firon & Co’s partner Dana Firon said these figures show the first sign of development and growth in the industry in Morocco, making it a prime target for Israel’s high-tech industry investments, Israel’s Calcalist journal reported on Sunday.
The technology-producing start-ups in Morocco face some funding and growth difficulties, according to a report published in January by Techcabal, a platform for African startup news.
Morocco’s start-ups face hurdles
Despite Firo’s positive comments, start-ups in Morocco face numerous barriers to growth. Bureaucracy is one example of a major setback.
It is difficult, for example, for companies to gain access to global services such as Google and Facebook ads. When a startup wants to access services outside its immediate market, it must pay special taxes or apply for special approval to access the services, which can take a lot of time.
According to the report, “the countries of North Africa (Morocco, Algeria, Tunisia, Mauritania, and Libya) have a closed border policy between them, which inhibits inter-regional trade.”
But in a promising sign that the country’s high-tech start-ups could be attracting more investors, Firon has recommended Israel’s high-tech industry to start looking towards Morocco’s skilled manpower.
“Morocco is full of engineers, most of them graduates of local universities and some of them graduates of European universities,” she said.
“Since the local industry is still too small, the possibility of employing Moroccan engineers in Israeli companies seems like a solution that may serve both parties,” Firon added.
Read also: Israel Offers Moroccan Students High-Tech Training, Employment
In Morocco in 2013 set up a high-tech park in Casablanca that benefits more than a hundred multinational companies wanting to develop their products and companies
Marom Energy, Israeli energy giant, acquired 30% of Morocco’s Gaia Energy in March 2022. This acquisition will make it easier to sign future deals with potential Israeli investors in the energy field.
In 2021 high-tech start-ups in Algeria raised $30 million (MAD292 million), and in Tunisia$23 million (MAD223 million), reported Techcabal.
