Government Council adopts bill establishing “Mohammed VI Fund for Investment”

Government Council adopts bill establishing “Mohammed VI Fund for Investment”

The Government Council, held on Wednesday 26 November 2020, via video conference under the chairmanship of Head of Government Saad Dine El Otmani, adopted the bill N°76.20 establishing the "Mohammed VI Fund for Investment."

The bill, presented by the Minister of Economy, Finance and Administration Reform, Mr. Mohamed BENCHAABOUN, responds to the High Instructions of HM King Mohammed VI contained in the Speech addressed on the occasion of the Throne Day ( July 29, 2020), which defined the major strategic directions to be developed to manage the crisis Morocco is facing due to the Covid-19 pandemic.

The Government Spokesperson stressed, in a statement read at a press briefing at the end of the government Council, that in order to launch the economic recovery plan, it has been decided to create a joint-stock company called the "Mohammed VI Fund for Investment", for which an envelope of 15 billion dirhams was been allocated from the general state budget, indicating that its board of directors will be chaired by the Minister in charge of Finance.

The new fund aims to finance major investment projects and support them, at the national and local levels, within the framework of partnerships with the private sector, and to provide capital to small and medium enterprises through sector-oriented or thematic funds.

It will also contribute directly to the capital of large public and private companies operating in areas considered as priorities by the Fund, through appropriate financial instruments such as advances, repayable loans and semi-autonomous funds. The Fund will also have the objective of preparing and implementing structured mechanisms to provide financing solutions for companies operating in priority areas.

It will also prepare investment projects and implement their financial restructuring, at the national and local levels, with a view to facilitating and improving both financing and implementation conditions.

The Mohammed VI Fund for Investment relies in its interventions on sector-oriented or thematic funds directed at priority areas and the needs of each sector, particularly in the areas of industrial restructuring, innovation and promising growth activities, as well as small and medium enterprises, infrastructure, agriculture and tourism.