Morocco's Digital Strategy 2030, recently unveiled by Prime Minister Aziz Akhannouch's government and the Ministry of Digital Transition led by Ryad Mezzour, has drawn significant criticism for its lack of ambition and effectiveness in addressing the challenges faced by the country's startup ecosystem. The strategy aims to support only 3,000 startups over the next five years, a figure that many experts deem insufficient when compared to the needs of a rapidly evolving global market. This comes at a time when youth unemployment in Morocco stands at a staggering 22.6%, with post-graduate unemployment even higher at 25.9% [b5451b4a].
The analysis reveals that Morocco's startup scene is struggling, with 99% of failed businesses in 2022 categorized as very small enterprises. This highlights a critical issue within the entrepreneurial landscape, where many startups lack the necessary support and resources to thrive. Furthermore, the country has shown a high dependency on foreign venture capital, raising concerns about the sustainability of its startup ecosystem. In contrast, African startups collectively received $4.5 billion in funding, yet Morocco's share remains minimal, accounting for only 2.5% of the total funding available in New York [b5451b4a].
Moreover, Morocco's startup environment is being outperformed by several other African nations, including South Africa, Egypt, Kenya, and Nigeria, as well as smaller countries like Cape Verde. This disparity raises alarms about a potential brain drain, as young entrepreneurs may seek better opportunities abroad rather than investing their talents in a stagnant local market. Critics argue that without a more robust and ambitious approach, the Digital Strategy 2030 risks becoming a 'roadmap to nowhere' for Morocco's startups, leaving them vulnerable to failure and limiting their potential for innovation and growth [b5451b4a].
In light of these challenges, stakeholders within the Moroccan startup ecosystem are calling for a reevaluation of the government's strategy to ensure it aligns with the needs of entrepreneurs and fosters a more conducive environment for innovation and economic growth. Comparatively, the French digital model faces similar challenges, as highlighted by Georges Nahon in a recent analysis. Despite an increase of 3,500 startups in France and a 27% rise in revenue, the success rate of startups remains low, with only 10-20% succeeding. Nahon notes that the French model struggles to replicate the venture capital funding seen in Silicon Valley, which limits the emergence of significant tech companies in Europe [3d32714b].
This parallel between Morocco and France underscores a broader issue within the global startup ecosystem, where both regions must confront the limitations of their current strategies to foster innovation and support their burgeoning tech industries.