Morocco plans a holding company to align actions of thirteen key public banks and funds

Sunday 09 March 2025 - 16:10

By: Zahouani Ilham

Morocco plans a holding company to align actions of thirteen key public banks and funds

Morocco is exploring the creation of a holding company aimed at unifying the actions of thirteen major public banks and investment funds, as part of a broader reform to manage state-owned assets more efficiently. The National Agency for Strategic Management of State Holdings, responsible for overseeing public enterprises, has launched a call for an in-depth study of Morocco's public financial sector.

The goal of the study is to enhance coordination between the involved institutions, improve their complementarity, and ensure a more effective allocation of resources. The analysis will focus on eight major banking institutions and five public investment funds, which are the main financial levers in the country. Among them are the Agricultural Credit Bank of Morocco, a key player in financing the agricultural sector, the Housing and Tourism Credit Bank, and the Deposit and Management Fund (CDG), which manages pension funds and national savings.

The study will also review the Mohammed VI Investment Fund, the Hassan II Fund for Economic and Social Development, as well as CDG Invest, Ithmar Capital, and Asma Invest— the latter being a joint Moroccan-Saudi entity involved in real estate, tourism, and agriculture.

Additionally, the study will explore the possibility of creating a public investment bank by evaluating the economic model and the financial and regulatory implications of such an institution. With a budget of 30.3 million dirhams (around 3 million USD), the project will be awarded through a competitive bidding process, with the winner given ten months to propose a governance framework that promotes better synergy between these entities and clarifies their respective roles.

This reform aims to reshape the balance between public and private investment in Morocco. The country seeks, through its new investment pact, to shift the current public-private investment ratio from 33% to 66% in favor of the private sector by 2035.