Moroccan startups can access $37m in capital from government-backed fund

Moroccan startups will be able to tap into MAD347 million (US$37 million) after a government-backed funding mechanism reached a new milestone with the publication of Decree No. 2.26.576. The Startup Catalytic Fund, launched by the Ministry of Digital Transition and Administration and managed by Tamwilcom, is now formally active and authorised to invest the allocated capital over a three-year period into venture capital funds that back digital startups.

"Passionate about the vibrant tech startups scene in Africa, Tom can usually be found sniffing out the continent's most exciting new companies and entrepreneurs, funding rounds and any other developments within the growing ecosystem," wrote Tom Jackson.

How the mechanism is structured

The Startup Catalytic Fund has been set up as a public instrument to support fund managers that specialise in digital and technology startups. The ministry’s decree enables the injection of the MAD347 million directly into selected VC vehicles rather than into startups, with the aim of using public resources to attract larger pools of private capital.

• Fund manager: Tamwilcom (operational manager)
• Public partners: Ministry of Digital Transition and Administration
• Strategic partners: Mohammed VI Investment Fund and Caisse de Dépôt et de Gestion (CDG)
• Shortlisted management companies: nine (named in the decree process)
• Public commitment: MAD347 million (US$37 million) over three years
• Expected mobilised capital: nearly MAD2.5 billion (US$268 million) for Moroccan startups

Details and objectives

The programme pairs the public allocation with strategic partners — notably the Mohammed VI Investment Fund and CDG — and a shortlist of nine management companies that will compete to manage the fund-of-funds allocations. The selected VC funds are expected to leverage the initial public capital to mobilise significantly more private investment, with a mobilisation target close to MAD2.5 billion (roughly US$268 million) channelled to Moroccan technology startups.

By directing public capital into VC vehicles rather than making direct equity investments in startups, the mechanism intends to catalyse private sector participation and build a deeper, more sustainable venture capital ecosystem in Morocco. The structure is designed to mitigate early-stage risk for private investors, improve fund manager capacity, and increase the number and size of follow-on financing rounds available to local entrepreneurs.

Outlook

With the decree now published, the immediate next steps will see the nine shortlisted management companies finalise their applications and the appointed strategic partners coordinate deployment plans. If the fund successfully attracts the projected private follow-on capital, Moroccan startups stand to benefit from a notable increase in available growth capital over the next three years.

Stakeholders will be watching how quickly Tamwilcom and the strategic partners can disburse commitments and whether the initial public allocation will indeed unlock the broader MAD2.5 billion mobilisation target. The success of the mechanism will be measured not only in capital raised but in the number of startups supported, follow-on funding rounds completed, and the emergence of stronger, locally managed VC firms in Morocco.