Investments/ The Mohammed VI Fund will soon be operational

CONCERNING the volume of the real contribution of the private sector to the Mohammed VI Fund for Investment, the minister in charge of the Budget provided some details during question time before the House of Represen­tatives. Indeed, according to Fouzi Lekjaâ, the first capital of this Fund of 15 billion Moroccan Dirhams (MAD) (about 1.5 billion USD) is a contri­bution from the general budget of the Government, with a targeted overall financial envelope of around 45 bil­lion MAD (about 4.5 billion USD). As for the remaining 30 billion DH (about 3 billion USD), they will be mobilized from national and inter­national partners. The Government owns the total capital of the Fund, which it can open up to 49%. This is subject to a condition: any entity that is not belonging to the Government may not hold 33% of the total share­holding structure. The Government will implement ambitious sectoral policies and will thus mobilize 245 billion MAD for public investments. The Fund will be a lever for financing these strategies. In the meantime, pre­parations are well underway for the organization of the Fund’s first board of directors. Several decisions relating to the actual kick-off of the Fund will be made on this occasion, especially with regard to the structuring and set­ting up of the sectoral and thematic funds mentioned in law 76.20. The choice of the public limited company aims to submit it to the provisions of law 17.95, with the implementation of control tools and a commitment to the principles of transparency and integrity in order to strengthen the confidence of investors and private partners. Added to this is the streng­thening of the Fund’s governance through the appointment of inde­pendent directors with expertise in the areas of intervention of the Fund. Thus, the board of directors, chaired by the minister of Finance, will be made up of 10 directors, 4 of whom are independent. The Fund will be managed by a general manager, cho­sen in accordance with the procedure for appointments to senior positions.

As a reminder, the Mohammed VI Fund for Investment will be based on sectoral and thematic funds, knowing that each intervenes in a sector concerned. These funds will be created in the form of underta­kings for collective investment in capital, established in accordance with law No. 41-05 (relating to ven­ture capital investment bodies).

In addition, preparations are unde­rway for the holding of the first meeting of the board of directors of the National Agency for the Stra­tegic Management of State Partici­pations and for the Monitoring of the Performance of State-Owned Enterprises. On this occasion, the appointment of its managing direc­tor will be made. This agency will initially be in the form of a public institution. Subsequently, it will be transformed into a public limited company within a period that will not exceed 5 years.

 Key indicators

■ Total amount of the Fund: 45 billion MAD: 15 billion MAD from the general Government´s budget and 30 billion MAD mobilized from national and international partners

■ Capital: Wholly owned by the Government, which can open up its capital by a maximum of 49%

■ Public investments: 245 billion DH

■ Target sectors: restructuring of industry, innovation, promo­tion of SMEs, basic infrastructure, agriculture, tourism.

Mohamed CHAOUI