Financing investment: the Mohammed VI Fund for Investment and the ADB join forces

Media7 November 11, 2023

Financement de l’investissement : le Fonds Mohammed VI pour l’investissement et la BAD s’associent

The Mohammed VI Fund for Investment (FM6I) and the African Development Bank (AfDB) have signed a letter of intent, aiming to increase sources of financing for productive investment and strengthen the role of the private sector in Moroccan economy.

Signed by the President of the AfDB, Akinwumi Adesina, and the Director General of FM6I, Mohamed Benchaâboun, during the Market Days of the Africa Investment Forum (AIF), held from November 8 to 10 in Marrakech, this partnership will enable two institutions to identify initiatives that could be the subject of joint financing, as well as to explore other financing mechanisms, such as risk sharing through guarantee products, said a joint press release.

“The Mohammed VI Fund for investment, created following the instructions of HM King Mohammed VI, is a pivotal mechanism which represents Morocco’s unwavering determination to strengthen its socio-economic foundations,” said Mr. Adesina, quoted by the communicated.

And continued: “I am very pleased to co-sign this letter of intent which demonstrates the ADB’s intention to foster an alliance with the Mohammed VI Fund for investment and to synergize efforts, expertise and resources in order to significantly amplify the impact of its investments and jointly achieve transformative development results”.

For his part, Mr. Benchaâboun welcomed this new partnership concluded with such a strong and credible institution in Africa, noting that the AfDB is not only a long-standing partner of the Kingdom of Morocco, but also a real player in the emancipation of the continent.

“This partnership will help encourage the dynamics of private investment in Africa. Sealing this partnership on the sidelines of the Africa Investment Forum was a strong mark of the Fund’s attachment to its African dimension,” he said.

Thus, the AfDB confirmed its support for the initiatives launched by the Fund and reiterated its commitment to working alongside it to mobilize various financing models and varieties of technical assistance options.

Making the Fund a major lever to strengthen the ADB’s intervention in Morocco, this partnership is the realization of an ambition shared by the two institutions consisting of strengthening the role of the private sector in financing the Moroccan economy.

Note that the Mohammed VI Fund for Investment has launched three major initiatives to catalyze productive investment in Morocco, in accordance with the High Royal Guidelines.

In this sense, the Fund is currently finalizing the selection process of management companies responsible for managing thematic and sectoral funds, intended to offer Moroccan companies financing solutions to strengthen their investment capacity, create sustainable jobs and develop their activities in new geographic markets.

The second initiative concerns a subordinated debt product, which will complement its equity financing offer, and which will also allow Moroccan companies to finance their investment projects while strengthening their equity.

As for the third initiative, it concerns the development of innovative tools to prepare infrastructure projects and take stakes in these projects in order to accelerate the pace of implementation of sustainable infrastructure projects in Morocco.

As such, the Mohammed VI Fund for Investment intends, through these various initiatives, to mobilize 30 billion dirhams (billion dirhams) alongside its initial capital of 15 billion dirhams.