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AFRICAN DEVELOPMENT BANK, MOHAMMED VI INVESTMENT FUND JOIN FORCES TO STRENGTHEN
INVESTMENT FINANCING IN MOROCCO

 1. Home
 2. News
 3. Press Releases
 4. African Development Bank, Mohammed VI Investment Fund Join Forces To
    Strengthen Investment Financing In Morocco

10Nov2023
Dr. Akinwumi Adesina, President of the African Development Bank and Mohamed
Benchaâboun, President of the Mohammed VI Investment Fund (FM6I) signed the
letter of intent.

The Mohammed VI Investment Fund (FM6I) and the African Development Bank are
joining forces to increase funding sources for productive investment and to
strengthen the role of the private sector in the Moroccan economy.

The institutions signed a Letter of Intent during the Africa Investment Forum
2023 Market Days, held from 8-10 November in Marrakech, Morocco. African
Development Bank President Akinwumi Adesina and the Director General of the
Mohammed VI Fund for Investment, Mohamed Benchaâboun, signed on behalf of their
respective institutions.

Dr. Adesina said:“Initiated under the auspices of His Majesty King Mohammed VI,
the Mohammed VI Investment Fund is a pivotal mechanism that represents Morocco's
steadfast resolve to strengthen its socio-economic foundations. I am very happy
to co-sign this Letter of Intent that 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.”

"The Mohammed VI Investment Fund welcomes this new partnership with such a
strong and credible institution in Africa. The African Development Bank is not
only a long-standing partner of the Kingdom of Morocco, but also a real player
in the emancipation of our continent. This partnership will help to boost
private investment in Africa", said Benchaaboun. He added: "Sealing this
partnership on the fringes of the Africa Investment Forum was a strong sign of
the Fund's commitment to Africa".

The Mohammed VI Investment Fund has launched three major initiatives to catalyse
productive investment in Morocco:

 * It 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, to create long-term jobs and to develop their activities in new
   geographical markets.
 * A subordinated debt product, which will supplement its equity financing
   offer, will also enable Moroccan businesses to fund their investment projects
   while increasing their equity at the same time.
 * The Fund is developing innovative tools for infrastructure project
   preparation and to take a stake in these projects to speed up the pace of
   sustainable infrastructure project implementation in Morocco.

Through these various initiatives, the Mohammed VI Fund intends to raise 30
billion dirhams in addition to its initial capital of 15 billion dirhams.

Against this background, the African Development Bank has confirmed its support
for the initiatives backed by the Mohammed VI Investment Fund and reiterated its
commitment to working alongside the Fund to mobilize various funding models and
a range of technical assistance options. Working in partnership will also allow
both institutions to identify initiatives that could be suitable for joint
funding, as well as to explore other funding mechanisms, such as risk-sharing
through guarantee products.

The partnership, which will make the Fund a major lever for strengthening the
African Development Bank’s involvement in Morocco, is the tangible expression of
an ambition shared by both institutions, namely strengthening the role of the
private sector in financing the Moroccan economy.

About the Mohammed VI Investment Fund

Created following His Majesty’s High Instructions as one of the pillars of the
Kingdom of Morocco’s economic recovery plan, the Mohammed VI Investment Fund was
instigated by Act no. 76-20 of 31 December 2020 in the form of a State-owned
limited company.

The Fund’s primary aim is to catalyse investment based on equity and by
mobilizing national and international investors in both the public and private
sectors. Among other things, its activities include contributing to funding
structural investment projects, strengthening businesses’ equity and
implementing structured funding mechanisms aimed at providing financing
solutions, as well as supporting production activities. The aim is to mobilize
an additional MAD 30 billion to supplement the initial share capital of MAD 15
billion, to generate between MAD 120 and 150 billion of investments. For more
information, see www.fm6i.ma



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