Venture Capital Boosts Economic and Social Transformation in Morocco
A report released in 2024 by the Moroccan Association of Venture Capital Investors, in partnership with Grant Thornton, highlights the growing and effective role of venture capital in supporting Morocco’s economic and social transformation through growth enhancement, structural consolidation, and improved governance within companies receiving investments.
The report indicates that companies benefiting from venture capital investments since the year 2000 experienced an annual growth rate in their revenue of 18.9%, significantly exceeding the gross domestic product growth rate of only 3.8% in 2024. In 2024 alone, these companies recorded a revenue increase of 20.5%, driven by strong performances in the information technology sector, which saw a growth of 79%, health at 59%, and services at 9%.
This dynamism has also led to increased international openness, with 33% of invested companies now focused on exports. In 2024, these companies generated 53% of their revenue from foreign markets, a rise from just 44% in 2022, reflecting a growing integration with the global economy.
Venture capital investments have led to job creation at an annual compound growth rate of 15%, and the representation of women in companies rose to 37% in 2024, up from 35% in 2022. The percentage of women in management teams reached 34%, while 20% were in investment committees, and 18% on boards of directors.
This dynamic has also underpinned significant structural changes, with the percentage of companies implementing annual training plans increasing from 23% to 56%. The proportion of companies proactively managing competencies rose from 18% to 43%, and 50% of these companies adopted ethical charters, compared to 26% previously. Environmental measures also showed improvement, increasing from 20% to 28% from the time the investments entered until 2024.
The majority of companies have embraced modern governance tools, with 99% employing budget monitoring policies, 98% using performance indicators and tracking tools, and 95% undergoing regular internal audits.
These reforms have resulted in a substantial financial impact, with total earnings before interest, taxes, depreciation, and amortization (EBITDA) rising from 3.23 billion dirhams to 8.02 billion dirhams in 2024, marking a growth rate of 2.5 times. The information technology sector led growth rates with 101%, followed by distribution at 99%, health at 84%, and industry at 68%.
Additionally, companies backed by venture capital contributed significantly to the tax system, with taxes and fees paid exceeding 5.15 billion dirhams since 2000 by the end of 2024, reflecting an increase of over 3 billion dirhams during the same period. In 2024 alone, contributions rose by 250 million dirhams compared to 2023.
The report reflects the transformative role of venture capital in the national economy, as it has not only infused financial resources but also guided companies towards enhanced strategic management, transparency, and sustainability. Hassan El Azrak, President of the Moroccan Association of Venture Capital Investors, emphasized the aim is to showcase leading national companies that balance financial performance with social impact and environmental excellence.
