Innovative start-ups in the Kingdom of Morocco have received a $50 million boost after the World Bank approved the funds in support of the government’s initiative to provide financing to promote small enterprises and create jobs in the country.
Evidence from the MENA (Middle East and North Africa) region show that start-ups contribute the highest number of jobs.
The Financing Innovative Startups and Small and Medium Enterprises (SMEs) Project will seek to bridge the market gap in the supply of equity financing for innovative young SMEs.
Randa Akeel, Senior Financial sector specialist and Task Team Leader highlighted the challenges young small enterprises face in mobilizing financing due to their lack of an existing sustainable revenue stream which banks require as collateral and their perceived high risk.
The project will invest in innovative start-ups and SMEs through private funds to selected promising investments.
It will also provide entrepreneurs with the necessary investment know-how and support to enable them create viable start-ups through resources to ecosystem-support providers for mentoring and investment-readiness programs.
An additional $100 million will go towards supporting the modernization of the national identification system for better targeting of social programs under the Identity and Targeting for Social Protection Project.