Morocco holds the largest share of private equity deals in North Africa, with a reported 56 PE deals between 2012 and 2017 at a total value of $912 million on the back of strong economic performance. This is according to the pan-African industry association, African Private Equity and Venture Capital Association (AVCA) in its Morocco Country Snapshot in the run up to the 15th Annual AVCA Conference which takes place on 23rd and 24th April in Marrakech.
From a regional perspective, between 2012 and 2017, 42% of PE deals in North Africa took place in Morocco, compared to 27% in Egypt, 26% in Tunisia and 5% in Algeria. Egypt holds the highest share of PE deals by value at 40%, with Morocco attracting 26% of deal value with the average transaction size in the country at US$5mn during the same period.
Moroccan PE has benefited from the implementation of far-reaching reforms, increased infrastructure investment and robust growth in the industrial and value-added agriculture sectors. The country’s investment profile has also been boosted by the recent currency liberalisation to encourage foreign investment, World Bank-funded urban regeneration and sustainable development in the renewable energy and agricultural sectors. The Morocco Country Snapshot shows that the Industrials sector has attracted 27% of deal volume over the last five years, while 25% of PE investment has been in the consumer discretionary industry.
Commenting on the Snapshot, Enitan Obasanjo-Adeleye, Director of Research at AVCA, noted: “We’re excited to be landing in Marrakech for the upcoming 15th Annual AVCA Conference at a time when the PE and investment communities are taking off, not just in Morocco, but the whole region. Our Morocco Country Snapshot illustrates Morocco’s role in the tremendous growth in North Africa over the past few years and highlights the country’s favourable business environment and powerful economy.”
Also commenting, Ziad Oueslati, Managing Director and co-Founding Partner of AfricInvest noted that Morocco is a force to be reckoned with.
“Institutional investors are rating the country as one of the top locations for PE investment in Africa,” Oueslati added. “By the same token, the investment ecosystem has depth which is why we’re here and why we are looking forward to welcoming the continent’s top thought-leaders in three weeks’ time to discuss investment prospects within Africa.”
On the back of successful industry gatherings in Abidjan, Accra, Addis Ababa, Cairo, Cape Town, and Lagos, AVCA continues to showcase the fastest growing economies in the world. Given Morocco’s regional share of PE investments and following re-entry into the African Union (AU) Marrakech serves as the ideal location to celebrate the 15th anniversary of AVCA’s Conference.
Several PE firms and direct investors, such as AfricInvest, CDG Capital Private Equity, Mediterrania Capital Partners and Wendel Africa, have headquarters or regional offices in the country. They will be among the 600+ private equity leaders to convene in Marrakech to discuss the key trends shaping the investment landscape in Africa. The largest African private equity and venture capital gathering globally returns to North Africa for the first time in nearly ten years bringing together thought leaders, investors, and advisors managing over US$1.3trn in assets.