Mohammed VI Investment Fund, AfDB Join Forces to Promote Investment Financing in Morocco

Signed by AfDB President, Akinwumi Adesina, and Director General of the Mohammed VI Fund for Investment, Mohamed Benchaâboun, during the Africa Investment Forum 2023 Market Days, held on November 8-10 in Marrakech, this partnership will allow the two institutions to identify initiatives that could be suitable for joint funding, as well as to explore other funding mechanisms, such as risk-sharing through guarantee products, according to a joint statement.

“Initiated under the auspices of His Majesty King Mohammed VI, the Mohammed VI Investment Fund is a pivotal mechanism that represents Morocco’s steadfast resolve to strengthen its socio-economic foundations”, said Adesina, cited in the statement.

“I am very happy to co-sign this Letter of Intent that demonstrates the African Development Bank’s intention to foster an alliance with FM6I and synergize efforts, expertise, and resources to greatly amplify its investment impact and to deliver transformative development results together”, he added.

For his part, Benchaaboun underlined that “the Mohammed VI Investment Fund welcomes this new partnership with such a strong and credible institution in Africa. The African Development Bank is not only a long-standing partner of the Kingdom of Morocco, but also a real player in the emancipation of our continent”.

This partnership, he pointed out, “will help to boost private investment in Africa”, said. He added: “Sealing this partnership on the fringes of the Africa Investment Forum was a strong sign of the Fund’s commitment to Africa”.

The partnership, which will make the Fund a major lever for strengthening the African Development Bank’s involvement in Morocco, is the tangible expression of an ambition shared by both institutions, namely strengthening the role of the private sector in financing the Moroccan economy.

The Mohammed VI Investment Fund has launched three major initiatives to catalyze productive investment in Morocco.

In this regard, the Fund is currently finalizing the selection process for management companies responsible for managing thematic and sectoral funds, aimed at offering Moroccan companies funding solutions to enhance their capacity for investment, to create long-term jobs and to develop their activities in new geographical markets.

The second initiative is a subordinated debt product, which will supplement its equity financing offer, will also enable Moroccan businesses to fund their investment projects while increasing their equity at the same time.

In the third initiative, the Fund is developing innovative tools for infrastructure project preparation and to take a stake in these projects to speed up the pace of sustainable infrastructure project implementation in Morocco.

Through these various initiatives, the Mohammed VI Fund intends to raise 30 billion dirhams in addition to its initial capital of 15 billion dirhams.

The Mohammed VI Investment Fund (FM6I) and the African Development Bank (AfDB) signed a Letter of Intent, aimed at increasing funding sources for productive investment and strengthening the role of the private sector in the Moroccan economy.
11 November 2023