Morocco’s startup ecosystem has emerged as a model for African countries working to foster innovation, according to the Morocco Startup Ecosystem Report, produced by UM6P and Startup Researcher.
The report highlights Morocco’s position as Africa’s sixth-largest venture capital destination, with startups raising $94.96 million in funding in 2024 despite global economic challenges.
This milestone reflects Morocco’s ambition to become a regional tech hub and offers insights for investors, policymakers, and entrepreneurs across the continent.
Morocco’s tech ecosystem rose to 88th globally and ninth in Africa in the 2025 Global Startup Ecosystem Index, moving up four places from 2024.
The $94.96 million raised represents a sharp increase from $17 million in 2023, driven by local funds including UM6P Ventures, Maroc Numeric Fund, and CDG Invest’s 212 Founders programme.
Casablanca recorded over 40% growth, ranking 317th globally, while initiatives such as Technopark and Impact Lab have supported over 3,000 startups since 2001.
The Digital Morocco 2030 strategy, backed by a $24 million fund, targets the creation of 3,000 startups and 240,000 digital jobs by 2030 and uses platforms like GITEX Africa to attract international investors.
The government’s Innov Invest Fund, supported by the World Bank, has contributed $50 million to pre-seed and seed-stage startups, helping ventures such as Chari.
Technopark has supported more than 1,100 companies in ICT, green tech, and cultural industries, while Impact Lab focuses on social and environmental innovation.
The report compares Morocco’s efforts with developments elsewhere in Africa.
Nigeria’s fintech sector saw Moniepoint become a unicorn after raising $110 million in 2024, while Kenya’s mobile payments sector, led by M-Pesa, attracted $638 million.
Morocco’s regulatory stability and 74% internet penetration position it as a gateway to North African and European markets, in contrast to the more fragmented ecosystems in Nigeria and Kenya.
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Despite this progress, challenges remain.
The report points to a lack of growth-stage capital, with startups struggling to secure funding to expand internationally.
Morocco’s $94.96 million in funding in 2024 fell short of Kenya’s $638 million, Nigeria’s $410 million, and South Africa’s $394 million, which together accounted for 84% of Africa’s startup funding.
Exit opportunities are limited, with only six notable exits in recent years, including DabaDoc and WaystoCap.
Gender disparities persist, though women hold 32% of senior roles at firms like UM6P Ventures and InnovX.
Structural challenges, including bureaucracy and unequal access to education, also limit inclusivity and scalability.
The report notes that these issues are similar to those seen across Africa.
Nigeria and Kenya face regulatory uncertainties and limited exit options.
Morocco’s francophone environment limits its appeal to anglophone investors, unlike Kenya’s English-language digital payments sector.
The report’s recommendations include streamlining regulations, creating tax incentives for exits, and strengthening gender inclusion, but achieving these goals will require sustained political commitment and private-sector involvement.
Morocco’s model offers lessons for other African countries.
Public-private initiatives such as Digital Morocco 2030 and the Innov Invest Fund can help drive startup growth.
Nations like Ghana, which raised $68 million in 2024, or Rwanda, which raised less than $20 million, could adopt similar strategies.
Building local VC capacity, as seen with Morocco’s reliance on funds like UM6P Ventures and Al Mada Ventures, could reduce dependence on foreign capital.
However, smaller economies may find this challenging due to lower GDP.
Overdependence on government support could also risk limiting private innovation if not balanced with market-driven policies.
Morocco’s regulatory reforms also trail Rwanda’s in ease of doing business, highlighting the need for agility.
Despite these challenges, Morocco’s startup ecosystem remains an example for countries across Africa aiming to promote innovation and growth.
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Image Credit: VC4A
