Morocco’s private equity sector demonstrated exceptional performance in 2024, significantly strengthening its strategic role in the national economy.
A joint impact study by the Moroccan Association of Capital Investors (AMIC) and Fidaroc Grant Thornton revealed widespread progress in economic, social, and fiscal indicators, including substantial net job creation.
The comprehensive study analyzed 320 Moroccan companies that have received private equity financing since 2000. By the end of 2024, these companies had accumulated investments totaling MAD 15.7 billion (approximately €1.47 billion), underscoring the increasing importance of this asset class in shaping Morocco’s economic landscape. Notably, the average revenue growth for private equity-backed companies reached an impressive 20.5 percent in 2024, a rate significantly surpassing that of traditional sectors. This robust growth was complemented by a 15 percent increase in employee numbers compared to 2023, directly reflecting private equity’s positive impact on job creation.
Sectoral highlights and growth drivers
Two sectors exhibited particularly remarkable performance in the report: Information and Communication Technologies (ICT): Recorded an outstanding 79 percent revenue growth. This surge reflects Morocco’s emergence as a regional hub for innovation and startups, fueled by a booming entrepreneurial ecosystem, the rise of seed funding, and growing foreign investor interest in fintech, artificial intelligence, and digital platforms.
Healthcare: Experienced a substantial 59 percent increase in revenue. This strong showing is attributed to ongoing structural reforms, particularly the expansion of social protection, which has boosted demand for healthcare services and attracted patient capital into clinics, laboratories, and medical service providers.
While more modest, the services sector still contributed significantly, achieving 9 percent growth in revenue and a remarkable 30 percent increase in employment, solidifying its position as a pillar of the Moroccan economy. This overall dynamism also translated into a marked improvement in financial indicators. Companies supported by private equity saw their EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) multiply by 2.5 between the inflow and outflow of funds, illustrating the operational leverage and positive impact on governance that private equity provides.
Fiscal contribution and future role
In terms of fiscal impact, data from nearly 200 SMEs revealed that private equity-backed companies generated an estimated cumulative tax revenue of MAD 3 billion (approximately €317 million) over an average holding period of six years. In 2024 alone, taxes paid by these companies increased by nearly MAD 250 million, confirming private equity’s contribution to broadening the national tax base.
The report, based on consolidated data from 23 asset management companies in Morocco, highlights that private equity’s role extends beyond mere financing. It provides strategic support, professionalizes teams, modernizes processes, and improves corporate governance. AMIC emphasizes that private equity acts as a catalyst for sustainable transformation, significantly enhancing the competitiveness of Moroccan companies.
As Morocco continues to prioritize industrialization, economic sovereignty, and green growth, private equity is poised to play an even greater role in supporting Small and Medium-sized Enterprises (SMEs) in their export endeavors, energy transition initiatives, digitalization efforts, and industrial upgrading. However, the sector faces challenges, including the need to expand the base of national institutional investors, ease exit conditions to enhance market liquidity, and deepen the regional footprint of Moroccan private equity, especially within French-speaking West Africa.
MK/te/Sf/fss/abj/APA