The Mohammed VI Investment Fund (FM6I) and the African Development Bank are partnering to increase funding sources for productive investment and to strengthen the role of the private sector in the Moroccan economy.
The two parties signed a Letter of Intent during the Africa Investment Forum 2023 Market Days, held from 8-10 November in Marrakech, according to a statement from the African Development Bank.
Productive investment is any investment that has the potential to boost the productive capacity of the economy.
The letter of intent was signed by African Development Bank President Akinwumi Adesina and the Director General of the Mohammed VI Fund for Investment, Mohamed Benchaaboun.
Commenting on the news, Adesina said that the Mohammed VI Investment Fund is a “pivotal mechanism that represents Morocco’s steadfast resolve to strengthen its socio-economic foundations.”
For Adesina, the Letter of Intent “demonstrates the African Development Bank’s intention to foster an alliance with FM6I and synergize efforts, expertise, and resources to greatly amplify its investment impact and to deliver transformative development results together.”
On his part, Banchaaboun said that the Mohammed VI Investment Fund “welcomes this new partnership with such a strong and credible institution in Africa.”
The partnership will help to “boost private investment in Africa”, said Benchaaboun, adding that sealing it on the sidelines of the Africa Investment Forum was a “strong sign of the Fund’s commitment to Africa.”
According to the statement, the Mohammed VI Investment Fund has launched three major initiatives to boost productive investment in Morocco.
The fund is currently finalizing the selection process for management companies responsible for managing thematic and sectoral funds, aimed at offering Moroccan companies funding solutions to enhance their capacity for investment, create long-term jobs, and develop their activities in new geographical markets.
The FM6I also created a subordinated debt product, which will supplement its equity financing offer, and will also enable Moroccan businesses to fund their investment projects while increasing their equity at the same time.
In addition, the fund is developing innovative tools for infrastructure project preparation and taking a stake in them to speed up the pace of sustainable infrastructure project implementation in Morocco.
Under the initiatives, the Mohammed VI Fund intends to raise MAD 30 billion ($2.9 billion) in addition to its initial capital of MAD 15 billion ($1.4 billion).
Source: Moroccoworldnews
