Morocco: Public equity, a tool to support the productive fabric

The injection of public funds, in the form of equity, in key sectors of the national economy will have a positive impact on the productive fabric in Morocco, affected by the current health crisis, underlined, Thursday, Hamid Tawfiki, the Managing Director of CDG Capital.

One of the great challenges of the Moroccan economy in this situation is to preserve the production capacities of companies and jobs, hence the crucial role of “public equity” in supporting these structures undermined by the crisis. he stressed during his speech at the first world summit of public development banks organized by videoconference, reports MAP.

Like several countries which are reviewing their role in the economy, Morocco will have to design a new distribution of roles between the public and private sectors to face its major challenges, including health, water deficit and youth unemployment, he added. And to recall that while several countries are careful to keep businesses afloat by putting in place guarantees, it is necessary to remain cautious. “Thus, public resources must be directed towards viable and sustainable businesses, after an objective assessment of their situation”.

He thus warned against the risk of a way out of the crisis with companies on a drip instead of companies with more viable business plans. Mr. Tawfiki returned to the flagship economic stimulus measures in Morocco, recalling the announcement by HM King Mohammed VI of the injection of 120 billion dirhams (MMDH) into the national economy and the creation of a Fund of strategic investment called “Mohammed VI Fund for Investment“.

This Fund in particular aims to ensure the financing of projects under public-private partnerships (PPP) essential for the development of the Kingdom and the strengthening of the capital of companies to develop further, he noted, noting that his interventions will focus, in particular, on industrial restructuring, small and medium-sized enterprises (SMEs), agriculture and tourism.

Finally, he underlined that CDG (Caisse de depot et de gestion) is the leading institutional investor in Morocco in terms of equity. Thus, sustainable development is part of the DNA of this establishment. “CDG intends to make its contribution to the country’s recovery efforts, by making the most of all its expertise, its financial resources and its ability to attract institutional investors and foreign donors”.

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