Public Initiatives to Support Startup Financing in Morocco: A Review and Current Landscape

Abstract

This study examines the evolution of public initiatives supporting startup financing in Morocco. Despite the recent development of the Moroccan entrepreneurial ecosystem, the existing literature remains fragmented, with limited research providing an integrated analysis of the types of public financing instruments, their positioning across the startup development cycle, and their capacity to leverage private capital. Accordingly, this study addresses the following question: to what extent does the architecture of Moroccan public support schemes cover the startup financing continuum and contribute to mobilizing private investment? The study adopts a descriptive and exploratory approach combining a review of scientific literature with a documentary analysis of scientific and institutional documents and publications issued by national and international public institutions. The findings identify three main phases in the evolution of public intervention, reflecting a gradual transition from traditional entrepreneurial support mechanisms toward a more structured financing architecture for innovation and startups. Five major categories of instruments are identified: grants, honor loans and concessional financing, seed financing, private equity and venture capital, and mechanisms combining financing with entrepreneurial support. This evolution also reflects a transformation in the role of public authorities, which increasingly act as catalysts for private investment and coordinators of the entrepreneurial ecosystem. Major initiatives include a USD 50 million financing program supported by the World Bank, schemes targeting approximately 530 firms, projected financing approaching MAD 2.5 billion, and more than MAD 700 million allocated to the Startup Venture Building program. The study therefore provides an updated mapping of Morocco’s public startup financing architecture and highlights persistent challenges related to coordination, complementarity

Classification JEL: G24 ; G28 ; O38 ; L26 ; M13

Paper type: Theoretical Research