Morocco’s private equity sector recorded historic growth in 2024, bolstered by strong performance across key industries and a notable surge in job creation, according to a new report by the Moroccan Private Equity Association (AMIC) and Fidaroc Grant Thornton.
The sixth annual impact study examined 320 Moroccan companies that have received private equity funding since 2000, with total investments reaching 15.7 billion dirhams (approximately €1.47 billion) by the end of 2024. The findings underscore the increasing strategic role of private equity in shaping Morocco’s economic landscape.
In 2024 alone, companies backed by private equity reported an average revenue growth of 20.5%, significantly outpacing traditional sectors. This expansion translated into a 15% year-on-year increase in employment, highlighting the sector’s direct contribution to job creation.
Two sectors stood out in particular: Information and Communication Technologies (ICT), which saw revenue soar by 79%, and healthcare, which experienced a 59% rise.
The ICT boom reflects Morocco’s emergence as a regional innovation and startup hub, driven by a growing entrepreneurial ecosystem, stronger early-stage funding, and rising foreign investor interest in fintech, artificial intelligence, and digital platforms.
Meanwhile, the healthcare sector’s growth is attributed to structural reforms linked to the national drive to expand social protection coverage. This effort has boosted demand for medical services and attracted long-term capital to clinics, labs, and service providers.
Although the services sector posted more modest revenue growth at 9%, it recorded a 30% increase in employment, affirming its foundational role in the Moroccan economy. Financial indicators across the board also saw marked improvements.
The report found that EBITDA (earnings before interest, taxes, depreciation, and amortisation) for supported companies more than doubled—multiplied by 2.5—between entry and exit points of private equity funding, reflecting significant operational leverage and improved governance.
On the fiscal front, nearly 200 small and medium-sized enterprises shared data indicating cumulative tax revenues of 3 billion dirhams (around €317 million) over an average six-year holding period.
In 2024 alone, tax contributions from private equity-backed firms rose by an additional 250 million dirhams, showcasing the sector’s impact on broadening the national tax base.
The study is based on consolidated data from 23 management companies active in Morocco and highlights the broader role of private equity beyond financing—ranging from strategic guidance and team professionalisation to process modernisation and governance enhancement.
“Private equity is more than just capital injection; it is a catalyst for sustainable transformation,” AMIC stated, reaffirming its mission to strengthen Moroccan firms’ competitiveness.
As Morocco continues to prioritise industrialisation, economic sovereignty, and green growth, the private equity industry is poised to support small and medium-sized enterprises (SMEs) in exports, energy transition, digitalisation, and industrial upgrading.
However, challenges remain, including the need to expand the national institutional investor base, ease exit conditions to improve market liquidity, and deepen regional integration—particularly in Francophone West Africa.
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