Morocco’s Startup Ecosystem Secures $94.96 Million in 2024 Funding

Morocco’s startup ecosystem has emerged as a model for African nations aiming to foster innovation, according to the Morocco Startup Ecosystem Report, a collaborative effort between UM6P and Startup Researcher. The report highlights Morocco’s rise to Africa’s sixth-largest venture capital destination, with startups securing $94.96 million in funding despite global economic challenges. This achievement underscores Morocco’s ambition to become a regional tech hub and offers valuable insights for policymakers, investors, and entrepreneurs across the continent.

Morocco’s tech ecosystem has shown remarkable progress, climbing to 88th globally and ninth in Africa in the 2025 Global Startup Ecosystem Index, marking a four-spot improvement from 2024. The country’s startups raised $94.96 million in 2024, a significant increase from $17 million in 2023. This growth is supported by local venture capital funds such as UM6P Ventures, Maroc Numeric Fund, and CDG Invest’s 212 Founders programme. Casablanca, the country’s tech hub, recorded over 40% growth, ranking 317th globally, while initiatives like Technopark and Impact Lab have nurtured over 3,000 startups since 2001.

The Digital Morocco 2030 strategy, backed by a $24 million fund, aims to create 3,000 startups and 240,000 digital jobs by 2030. This strategy leverages events like GITEX Africa to attract global investors. Morocco’s success is driven by a robust public-private synergy, with the government’s Innov Invest Fund, supported by the World Bank, channeling $50 million into pre-seed and seed-stage startups. This has fostered ventures like Chari, a B2B e-commerce platform. Technopark, established in 2001, has supported over 1,100 companies in ICT, green tech, and cultural industries, while Impact Lab drives social and environmental innovation.

These efforts contrast with Nigeria’s market-driven fintech boom, where Moniepoint became a unicorn with $110 million in 2024, and Kenya’s M-Pesa-led mobile payment revolution, which attracted $638 million in funding. Morocco’s stable regulatory environment and 74% internet penetration position it as a gateway to North African and European markets, unlike the more fragmented ecosystems in Nigeria or Kenya.

Despite its progress, Morocco faces significant hurdles. The report highlights a growth-stage capital gap, with startups struggling to secure funding for international scaling. In 2024, Morocco’s $94.96 million in VC funding lagged far behind Kenya ($638 million), Nigeria ($410 million), and South Africa ($394 million), which together captured 84% of Africa’s startup investments. Exit scarcity remains a critical issue, with only six notable exits in recent years, including DabaDoc and WaystoCap, compared to South Africa’s vibrant M&A landscape. Gender disparities also persist, despite progress in senior management roles at firms like UM6P Ventures and InnovX, where women hold 32% of leadership positions. Structural barriers, such as bureaucratic red tape and unequal access to education, further hinder inclusivity and scalability.

These challenges mirror broader African trends. Nigeria and Kenya, while leading in funding, also grapple with regulatory inconsistencies and limited exit opportunities. Morocco’s francophone context limits its appeal to anglophone investors, unlike Kenya’s M-Pesa ecosystem, which benefited from early digital payment adoption and English-language accessibility. The report’s recommendations, including streamlining regulations, incentivising exits through tax breaks, and promoting gender-inclusive policies, aim to address these gaps but require sustained political will and private-sector buy-in.

Morocco’s model offers actionable lessons for other African nations. Leveraging public-private partnerships, as demonstrated by Morocco’s Digital Morocco 2030 and Innov Invest Fund, can catalyse startup ecosystems. African nations like Ghana or Rwanda, which raised $68 million and less than $20 million, respectively, in 2024, could adopt similar models to boost early-stage funding. Building local VC capacity to reduce foreign dependency is another key lesson. Morocco’s reliance on local VCs like UM6P Ventures and Al Mada Ventures, which drove 70% of 2024 funding, offers a model for reducing dependence on foreign capital. Countries like Senegal or Côte d’Ivoire could establish local funds to stabilise ecosystems. Addressing inclusion and exit gaps proactively is also crucial. Morocco’s push for gender inclusion and exit incentives could inspire other nations, but cultural resistance to gender equity poses risks.

Applying Morocco’s model across Africa faces challenges. Smaller economies lack Morocco’s GDP to support large-scale funds. Overreliance on government initiatives risks stifling private innovation if not balanced with market-driven policies. Additionally, Morocco’s regulatory reforms lag behind Rwanda’s ease-of-doing-business ranking, requiring African nations to prioritise agility. Despite these challenges, Morocco’s startup ecosystem serves as a valuable blueprint for African nations striving to foster innovation and economic growth.