Al Mada Holding Group's Multifaceted Investment Journey Across Africa

Casablanca-based Al Mada Holding Group stands as a titan in Africa's private investment landscape, boasting a diverse portfolio that spans sectors such as banking, telecommunications, renewable energy, and the food industry.

A hallmark of Al Mada's strategy has been its penchant for securing majority stakes in some of Morocco's premier private enterprises.

With a footprint that touches 27 markets, 25 of which are within Africa, the group's overarching vision is clear: catalyze growth, foster innovation, and solidify its dominance across its operational domains.

This forward-thinking approach ensures that Al Mada not only helps its invested companies scale but also remains agile in anticipating and integrating disruptive technologies on the horizon.

In a nod to the evolving investment landscape, Al Mada has been astutely observing the meteoric rise of venture capital investments, especially within Africa.

To put this growth in perspective, 2016 witnessed approximately $366 million funneled into African startups.

Fast forward to 2022, and this figure has surged to an impressive $5-6 billion, encompassing both equity and debt transactions.

Delving deeper into this funding surge unveils consistent patterns.

While grassroots-level early-stage investments dominate the scene in terms of sheer volume, often championed by local investors, it's the high-value late-stage investments from international stakeholders that grab headlines.

However, a notable gap emerges at the Series A and B funding stages.

Here, African-focused funds, typically bolstered by developmental financial institutions (DFIs), play a pivotal role, emphasizing the critical need for sustained investment across all developmental phases.

While Morocco's venture capital landscape remains more subdued compared to countries like Egypt, recent trends suggest a promising trajectory.

Data from 2022 reveals a significant uptick, with investments in Moroccan startups surging to over $126 million, a notable leap from the $29 million recorded in 2021.

This growth isn't happening in isolation.

Local entities like Outlierz Ventures and UM6P Ventures have emerged as significant players in the scene.

Furthermore, the introduction of AMV underscores the maturation and promising evolution of Morocco's venture capital ecosystem.

Omar Laalej, Managing director, Al Mada Ventures stated, “Our aim goes beyond merely channeling substantial African capital for entrepreneurs on the continent. We anticipate the active participation of both local and international corporates. By investing time and resources into our vibrant startup community, addressing crucial societal challenges becomes feasible. The potential is immense, given Africa's resilient population that is ardently driven towards achieving success."

Tage Kene-Okafor / TechCrunch