Morocco creates new fund to promote technological innovation

26/10/2008

Morocco has set up the first fund in the country to support innovation in information technology, with an initial budget of 100 million dirhams. The fund is part of a plan to create more than 30,000 new direct job opportunities in ICT industries.

By Adam Mahdi for Magharebia in Casablanca – 26/10/08

[apebi] A new Moroccan fund will provide up to 50% of the financing for innovative of information technology projects.

The Moroccan government acted recently to support innovation in information and communications technology with the establishment of a national fund for ICT development. The new fund, with an initial allocation of 100 million dirhams, was created in partnership with the Association of Information Technology Professionals (Apebi).

"The purpose of this fund is to provide up to 50% of the financing for innovative projects advanced by companies working in the field of information technology," said Apebi Chairman Mohamed Horani.

The fund, managed by the Central Guarantee Fund (CCG) requires firms who apply to provide 50% of the project costs themselves, whether from their own resources or with outside financing, and there is a per-project limit of 2 million dirhams.

Companies wishing to participate must also demonstrate three years' continuous operations in the field of information technology at the time of applying to the CCG.

The fund's operating mechanisms set out a repayment period of six years, with the possibility of deferring payments by up to three years, at an annual interest rate of 2% (excluding VAT).

"Any Moroccan business submitting an innovative project which comes under the ICT sector is eligible for financing," said Ahmed Réda Chami, the minister for trade, industry and new technology, at the fund's official launch in Casablanca.

To ensure a smooth flow of applications, the committee in charge of the project has promised that approvals will be granted within a maximum period of 21 working days from the date of receiving each application. The director-general of the CCG, Houssine Attaoui, said "the introduction of this fund marks a turning point in public policy, with better structures to support innovation, including in ICT."

In addition to setting up this fund in partnership with Apebi, the government is preparing to launch its new "Impact" plan in November, which is intended to boost the ICT industry in Morocco.

"This plan is all part of a programme to get Morocco's ICT strategy working, in terms of off-shoring potential, the use of ICT by SME, e-government, the democratisation of Internet access and the promotion of enterprise in high-tech niches," added Chami.

Apebi is party to a "contrat-progrès" agreement, which relates to forecast development in the ICT sector in Morocco between now and 2012. By then, Morocco is planning to have created more than 30,000 new direct job opportunities in ICT industries, to add to the 90,000 forecast to arise from off-shore activities. Looking at turnover, Apebi officials say that the 30 billion dirhams in receipts generated by the sector in 2005 will double to 60 billion, of which 1.8 billion will come from exports, excluding off-shoring activities.