Morocco's Private Equity Sector Showed Strong Growth by End of 2024
The sixth annual impact study reveals the strong performance of more than 320 companies that have received private equity funding since 2000. The firms have attracted a total of MAD 15.7 billion ($ 1.74 billion) in cumulative investments through the end of 2024.
Beyond revenue growth, these companies expanded their workforce by 15% compared to 2023, creating thousands of new jobs across Morocco's economy.
Technology and healthcare lead growth
The report indicated that the information and communication technology (ICT) sector posted exceptional results, with revenue soaring 79% in 2024. The dramatic growth reflects Morocco's growing reputation as a hub for innovation and startups, while demonstrating investor confidence in the country's tech potential.
Meanwhile, healthcare companies also performed strongly, recording 59% revenue growth. The sector benefits from ongoing structural reforms and the expansion of social coverage across Morocco, which has created sustained demand for health services.
The services sector, while growing at a more modest 9%, remains crucial for job creation. Employment in services companies rose 30%, reinforcing the sector's role as a cornerstone of the North African country's economy.
Strong financial performance
The financial health of private equity-backed companies shows marked improvement. Companies multiplied their EBITDA (earnings before interest, taxes, depreciation, and amortization) by 2.5 times between when funds entered and exited investments.
This demonstrates the significant value creation that occurs during the investment period.
Growing tax contributions
Private equity investments also generate substantial benefits for Morocco's public finances. Nearly 200 small and medium enterprises that shared their tax data contributed an additional MAD 3 billion ($ 332.98 million) in cumulative tax revenues over an average holding period of six years.
In 2024 alone, taxes and fees collected from private equity-backed companies increased by almost MAD 250 million ($ 27.74 billion) compared to the previous year.
Measuring real impact
The joint report from AMIC and Fidaroc Grant Thornton draws on data from 23 management companies, providing concrete evidence of private equity's lasting contribution to transforming and growing Morocco's business landscape.
It stresses how private equity serves as more than just a source of capital, but also acts as a catalyst for sustainable business development, job creation, and economic growth across multiple sectors of Morocco's economy.
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