WP PUBLIC 1 5 2017 17 4 3 Moroccoceedapril

Public Disclosure Authorized
Igniting Climate
Entrepreneurship in
MOROCCO
Findings from the Climate Entrepreneurship
and Innovation Ecosystem Diagnostic
April 2017
losure Authorized
The World Bank Group
1818 H Street NW
Washington, DC 20433
February 2017
Authors: Kalyah Ford, Ayoub Derdabi, Rosa Lin, and

Justine White
Design and Graphics: Rosa Lin
This work is a product of the staff of World Bank Group. The findings,
interpretations, and conclusions expressed in this work do not necessarily reflect the
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governments they represent. The World Bank Group does not guarantee the accuracy
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Attribution: Please cite the work as follows: World Bank Group. 2017. Igniting Climate
Entrepreneurship in Morocco: Findings from the Climate Entrepreneurship and Innovation
Ecosystem Diagnostic. License: Creative Commons Attribution CC BY 3.0
“Entrepreneurship and innovation
are the twin values that are both
stepping stones towards freedom,
social mobility and prosperity...”
- His Majesty the King Mohamed VI
GES, 2014
Acknowledgments
This report was written and finalized by a core team including: Kalyah Ford, Rosa Lin, Ayoub Derdabi, entrepreneurship consultants at
the World Bank Group, and Omar Agodim, former business incubation manager of the Morocco Climate Innovation Center, led by
Justine White (Senior Private Sector Specialist and Project Leader, World Bank Group).
This endeavor would not have been possible without the participation and assistance from a number of people, from both within and
outside of the World Bank Group. The authors of this paper would like to extend their sincere appreciation to Morocco CIC / Cluster
Solaire Chief Executive Officer, Mohamed Bernannou, the staff of the Cluster Solaire and Moroccan Agency for Sustainable Energy
(MASEN), Nadia Zeddou, Cluster Solaire Business Development Manager, and most notably Obaid Amrane, Member of the Board of
Directors of the Morocco Agency for Sustainable Energy (MASEN), for their partnership and cooperation during this diagnostic.
The team also wishes to thank the following colleagues for contributions, comments on initial drafts, general guidance, and inputs:
Maja Andjelkovic, Jonathan Coony, Philippe de Meneval, Nawal Filali, William Fellows, Marwa Kamel, Kenza Lahlou, Alexandre
Laure, Komal Mohindra, Sophia Muradyan, Ellen Olafsen, Jean-Louis Racine, Farid Tadros, and David Treguer.
Finally, heartfelt thanks go to the individuals in Morocco who were generous of their time, and shared insights during our interviews,
as well as the numerous entrepreneurs who responded to the online survey.
This research was made possible due to the contributions of the Ministry of the Environment and Protection of Land and Sea of Italy,
and was done in partnership with the Morocco Climate Innovation Center and Cluster Solaire.
9 Glossary TABLE OF
10 Executive Summary
CONTENTS
20 Introduction
26 Morocco’s Climate Challenge and

Economic Opportunity
4. Few Corporate and Private Foundation
Linkages to Boost Ecosystem
30 Main Findings 5. Funding for Startups Limited by
A. Morocco’s Green Entrepreneurs Risk-averse Investors
1. Solo Founders Lack Co-founders to Build 6. Market Access Not Widely Available for
High-growth Firms Entrepreneurs
2. Too Few Mentors Limit Entrepreneurial 7. Additional Market Information Necessary
Growth for Doing Business
3. Women Entrepreneurs Could Benefit from
Dedicated Support
B. Morocco’s Burgeoning Climate 62 Recommendations
Entrepreneurship Ecosystem
1. A Perceived Lack of Policy Support to 68 Endnotes & Bibliography
(Green) Entrepreneurs
2. A Growing, but Fragmented Ecosystem
3. Entrepreneurs Lack Later-stage Support
Figures
76 Annexes
Annex I: Report methodology Executive summary
Figure 1e. Climate Entrepreneurship and Innovation
1. Secondary Data Collection
Diagnostic Data Collection Channels
2. Indicator Assessment
Figure 2e. Mapping Startups and their Enablers by
3. Background Research
Entrepreneurial Stage
4. Qualitative In-country Data Collection
a. Semi-structured interviews Body
b. Online entrepreneurial attitudes and Figure 1. Babson Entrepreneurship Ecosystem
experts survey Model
c. Defining a population and distribution Figure 2. Climate Entrepreneurship and Innovation
d. Calculating confidence Diagnostic Data Collection Channels
e. Defining the sample Figure 3. Benchmarking Morocco’s Key Indicators
to Other Countries
Annex II: Why Climate Innovation? Figure 4. Profile of Morocco’s Green Entrepreneurs,
based on survey results
Figure 5. Top Client Countries for Morocco’s
Entrepreneurs
Case studies & Figures Figure 6. Top 5 Sources of Mentorship

Figure 7. The Entrepreneurial Process
Figure 8. Morocco’s Climate Entrepreneurship
Ecosystem, mapped by category
Case studies Figure 9. Morocco’s Climate Entrepreneurship
35 Case Study 1: eLum Ecosystem, mapped by connections
38 Case Study 2: Cleanzy Figure 10. Mapping Startups and their Enablers by
40 Case Study 3: Evaptainers Entrepreneurial Stage
44 Case Study 4: Biodome Figure 11. Top Source of Funding Connections for
55 Case Study 5: Kilimanjaro Entrepreneurs, based on survey results
58 Case Study 6: Farasha
Figures cont’ Boxes
Box 1.1 Entrepreneurship Macro-data Snapshot
Annex Box 1.2 Misconceptions of Green Entrepreneurs
Figure 1a. Babson Entrepreneurship Ecosystem Box 1.3 Women’s Support Programs Globally
Model Box 1.4 Acceleration Support Can Help Businesses
Figure 2a: Six Pillars of Babson’s Ecosystem Scale
Framework, as applied to an innovation and Box 1.5 French and British Investor Financial
entrepreneurship context Incentives
Figure 3a. Morocco’s CEED Benchmarking Box 1.6 GreenCape: Providing South Africa with
Rationalization
Green Market Intelligence
Figure 4a. Interviews by Stakeholder Group
Figure 5a. Defined Population of Morocco’s
Entrepreneurship Ecosystem
Figure 6a. Ecosystem Actors Survey and Response
Rate
Acronyms
AI Artificial Intelligence MENA Middle East and North Africa
AMIC Moroccan Association of Capital Investors MNF Maroc Numeric Fund
B2B Business-to-business MRE Ministry of Moroccans Living Abroad and
Migration Affairs
CEED Climate Entrepreneurship and Innovation NGO Non-governmental organization
Ecosystem Diagnostic
CO2 Carbon dioxide OECD Organisation for Economic Co-operation and
Development
CSP Concentrated solar power OS Operating system
CTIC Clean Tech Innovation Challenge, Morocco P2P Person-to-person
CSP Concentrated solar power PER Public Expenditure Review
DIV Development Innovation Ventures PV Photovoltaic
GEM Global Entrepreneurship Monitor R&D Research and development
GIZ German Agency for International Cooperation SEIS Seed Enterprise Investment Scheme (UK)
GDP Gross domestic product SME Small and medium enterprise
GES Global Entrepreneurship Summit USAID United States Agency for International
Development
HR Human resources VC Venture capital
IFC International Finance Corporation WBG World Bank Group
IT Information Technology
MAD Moroccan Dirham
MASEN Moroccan Agency for Sustainable Energy
MCIC Morocco Climate Innovation Center
mCISE Moroccan Center for Innovation and Social
Entrepreneurship
Glossary
Technologies that provide climate mitigation, adaptation benefits, or positive environmental
Green Technology benefits. Typical sectors include clean energy, energy efficiency, sustainable agriculture, food
(Greentech or production, forestry, resource management and conservation, sustainable consumption and
Cleantech)
production, and environmental sustainability.
Green Technology An entrepreneur whose business is based on utilizing green technology in some form. This covers
Entrepreneur both entrepreneurs wishing to commercialize indigenous/local technologies and those deploying
technologies and business models invented elsewhere.
Example. A person who initially deployed a green technology successfully in Country A, and is now
looking for new markets in Country B.
Green Technology Companies that base their business on green technology, whether existing or new. This includes
Company
companies that innovate with regard to their process/business model — whether or not their
technological solution is new.
Example. Many solar startups (for example, SolarCity, Mosaic) do not offer a new solar technology,
but are nevertheless innovating their delivery and business model aspects.
Note. Many ventures that the World Bank considers “greentech firms” do not actually regard
themselves as such.
A company’s method of creating value for the customers and capturing value for the company and
Business Model
its stakeholders.
Opportunity An opportunity entrepreneur leads, founds, organizes, and/or runs a business that aims to grow
Entrepreneurs beyond the scope of an individual’s needs. It ultimately provides jobs and income for others in
specific sectors.
9
Executive
summary
The environment in Morocco, like many other
low- to high-income countries, is particularly
vulnerable to climate change. However, unlike
other countries facing similar struggles, the
Moroccan government has responded to these
challenges and imbalances through a green
growth agenda. This agenda is firmly oriented
toward climate change mitigation and
adaptation. Further motivated by concerns not
only about energy security — but also about
economic development and poverty reduction —
the Moroccan government invested more than
US2 billion in clean energy technologies and
installed 166 megawatts (MW) of capacity
between the years 2009 and 2013.1 The primary
goal of this investment was to drastically reduce
the energy dependence on foreign sources and
become increasingly more energy self-sufficient.
However, self-sufficiency begins at home. It requires but specifically climate entrepreneurship, have
investment in localized technologies through reached a ‘start-up’ stage. Nonetheless, the overall
innovative entrepreneurs who can propel this growth support environment requires more targeted
in direct response to Morocco’s climate threats. The intervention, in particular, favorable policies,
primary way to combat these challenges is largely resources, and a resilient entrepreneurial-minded
through the creation and adaptation of green culture to inspire future growth.
technologies and climate solutions, such as small-scale
hydroelectric plants, photovoltaic solar installations, Research Approach
off-grid solar plants, and biomass treatment facilities.
Indeed, climate technology is an area in which The report takes a mixed-methods approach, and is
investments are expected to exceed US$23 trillion in based on four forms of data collection and analysis
emerging markets between now and 2030, according undertaken from August-November 2016. By using
to the International Finance Corporation (IFC).2 different data sources, the team was able to
triangulate the data and gain higher validity and
Although there are good opportunities for Moroccan consistency for the findings and recommendations
growth-oriented entrepreneurs, stronger (see figure 1e).
entrepreneurship-related policies and support to the
climate entrepreneurship ecosystem is necessary. Such
support would help improve the environment for
green entrepreneurs, and unlock the full potential of
Morocco’s green private sector development agenda.
In recent years, investment in the various facets of

Morocco’s entrepreneurship ecosystem has become
the focus of both the public and private sectors. The
foundation has been developed, and all the structures
necessary for nurturing not only entrepreneurship,
11 Morocco CEED • Executive Summary

for the Moroccan green entrepreneur,
while also bringing to light the
different factors that shape Morocco’s
current entrepreneurship ecosystem.
The following are a range of the

report’s findings that have been
organized into two interwoven
groups: (i) “Morocco’s green
entrepreneurs,” which details insights
about green entrepreneurs doing
business in Morocco; and (ii)
“Morocco’s burgeoning climate
entrepreneurship ecosystem,” which
explores and defines the various
strengths and limitations of the
Source: Authors environment for doing business in
Figure 1e. Climate Entrepreneurship and Morocco.
Innovation Diagnostic Data Collection Channels
Morocco’s Green Entrepreneurs
From the perspective of various Moroccan
Profile of Moroccan Green Entrepreneurs
stakeholders, the ecosystem suffers from structural
The Moroccan green entrepreneur (surveyed) is
barriers, a policy environment that could be
young, educated, and started their business because
strengthened, and gaps in knowledge and access. The
they wanted to be their own boss. These
research and analysis for this report delved deeper
entrepreneurs work in diverse sectors —from green
into these issues, and explored the current situation

information technology (IT) to energy efficiency — expert with a great idea, but less of the know-how to
and are creating and adapting technologies and run and operate a successful business —but also makes
solutions to solve some of Morocco’s greatest it more difficult to obtain funding.
environmental challenges. They are doing so at a
time when investment in solutions to combat the Too few mentors limit entrepreneurial growth.
country’s climate challenges is high, as well as a Finding solid vested mentors in Morocco to guide
public necessity. Case studies throughout the report entrepreneurs through all phases of the growth cycle
complete the profile of the Moroccan green is difficult. Not only do mentors tend to be more
entrepreneur, showing the different stages of business technically- than business-focused in nature, but
maturity and providing more context to the different because of a perceived lack of a “giving-back” culture
types of green IT, solar refrigeration, and other in the ecosystem, many mature entrepreneurs are
products and services being developed by local viewed as unwilling to mentor their younger
entrepreneurs. counterparts. This also promotes a lack of trust within
the broader community.
Solo founders lack co-founders to build high-
growth firms. The skills gap in Morocco limits most Women entrepreneurs could benefit from
businesses from reaching their full potential. While dedicated support. There are currently no focused
entrepreneurs are generally highly skilled, most of cleantech entrepreneurship programs for women. In
their value tends to lie in technical areas, for example, this context, women lack entrepreneurial role models
scientific and mathematical skills. However, they lack and mentors. Overarching inhibiting factors include:
the business savvy to advance their concepts and cultural expectations (including social and familial
technologies beyond the ideation and early stages. responsibilities); a lack of access to information,
Indeed, forty-three percent of surveyed Moroccan networks, financing — and by extension — markets
entrepreneur businesses are solo-run. This not only and inputs. Nonetheless, young women are
exacerbates the skills issue —as most of these climate increasingly prevalent and active at a young age in
technology startups tend to be started by a technical the field of social entrepreneurship.

Morocco’s Burgeoning Climate potential for impact; and investment from the
Entrepreneurship Ecosystem international community. However, as many
respondents suggested, there is a disconnect within
A perceived lack of policy support to green the ecosystem that is exacerbated by a lack of
entrepreneurs. The policy aspects of green communication among the key players (namely
entrepreneurship remain relatively new, and the roles government and the private sector), which results in
of all of the players in the ecosystem and government lack of sufficient support for entrepreneurial activities.
are slightly underdeveloped. Further, there are
misconceptions about the profile of entrepreneurs, Entrepreneurs lack later-stage support. The
and especially green entrepreneurs. These general consensus among interview respondents was
misconceptions hinder further development of the that early-stage support exists, but requires stronger
ecosystem. The government has taken steps toward connections in the ecosystem, as well as an
better serving entrepreneurs, centralizing information improvement of existing infrastructure and quality.
and providing incentives for investing in startups. There is a clear gap in later-stage support
However, knowledge of these efforts is not yet programming in Morocco for green
widespread among the community. In this context, entrepreneurs. It is evident that the support a green
62 percent of surveyed entrepreneurs said that overall entrepreneur can receive currently has its limits — in
government support is lacking. contrast to a digital entrepreneur, for example. With
an absence of financial support and acceleration
A growing, but fragmented ecosystem. Many of services, it is difficult for many green entrepreneurs,
the pieces necessary for building a healthy who are at this critical juncture to fully scale their
entrepreneurship ecosystem exist in Morocco. These businesses (figure 2e).
include: active support organizations; a willing
government; education and research centers with

Figure 2e. Mapping Startups and their Enablers by Entrepreneurial Stage
Source: Authors

Few corporate and private foundation linkages exist to Market access is not widely available for green
boost the ecosystem. Corporations and large private entrepreneurs. Green entrepreneurs commonly found the
foundations have few links to the Moroccan Moroccan market to be small and difficult to access. Almost
entrepreneurship ecosystem. There is little trace of financial 50 percent of surveyed entrepreneurs found the market size
support or other significant entrepreneurship programs, and demand unfavorable for doing business. Experts and
which are commonplace in more developed ecosystems. entrepreneurs agree that the public market is virtually
This is a missed opportunity, as corporations and private inaccessible. Opportunities are perceived to be reserved for
foundations could bring value to the ecosystem by simply larger, more established companies, and often international
working with a select number of startups. This would ones.
provide them with the opportunity to grow.
Additional market information is necessary for doing
Funding for start-ups is limited by risk-averse investors. business. Fifty-four percent of entrepreneurs said that there
Access to funding at every stage of enterprise development was a lack of access to market information, nothing that this
is difficult to attain in Morocco, and potential sources of is the biggest market barrier to doing business in Morocco.
financing are limited. Eighty-four percent of surveyed As a result, green entrepreneurs often start their businesses
entrepreneurs were self-funded at the early-stages. With in reverse. Rather than trying to solve a problem or fill a gap,
regard to later-stage support, 38 percent of entrepreneurs many Moroccan green entrepreneurs create a technology or
found it difficult to access (this includes loans, angel solution before sourcing demand or market fit. This, in turn,
investing, and venture capital funding) — indicating that it can stunt the development of a start-up business and its
as the biggest financial barrier to doing business in Morocco. potential to scale.
This financial barrier is also exacerbated by the lack of risk-
appetite among investors who are commonly viewed as
only seeking stable investments. In this regard, such
investors are more likely to invest in real estate than in a
new start-up venture. Likewise, they are more likely to
invest in digital than in cleantech ventures.

Recommendations

INTRODUCTION
Introduction
A World Bank Group (WBG) team, together with the support of Cluster Solaire’s and the
Moroccan Agency for Sustainable Energy (MASEN), undertook a climate entrepreneurship
ecosystem diagnostic in Morocco. The purpose was to shed light on the complexities of the
country’s climate entrepreneurship ecosystem. This was part of the preparation of an International
Finance Corporation (IFC) advisory service activity.
Climate-smart development is a rapidly growing area in Morocco, and indeed much of the world. It
has simultaneously been proven to boost economic development and contribute to more sustainable
economic development by reducing emissions and energy costs, creating jobs, and increasing
economic opportunity.1 Climate entrepreneurship2 offers a good opportunity to promote climate-
smart development and help countries transition to a green economy. Opportunity entrepreneurs,
who are the main focus of this report, and small and medium enterprises (SMEs) can play a key role in
propelling the industry through the creation and adaptation of green technologies and solutions, as
well as attendant job creation. However, there is currently a knowledge gap as to how to utilize
existing resources to design solutions to promote future entrepreneurial activity in the green sector.
21 Morocco CEED • Introduction

In order to substantially contribute to the knowledge in this entrepreneurs, as well as contribute substantively to the
area, as well as contribute to existing and planned WBG design of the aforementioned International Finance
activities, the team considered several questions to guide the Corporation (IFC)-supported activity.
research:
Methodology Overview
I. What are the strengths, weaknesses, and opportunities for
improvement in the existing climate entrepreneurship The report’s methodology and analytical process were
ecosystem? developed based on the Babson Entrepreneurship Ecosystem
II. What is the typical profile of potential high-growth, model (see Annex I for complete methodology). This model
green entrepreneurs in Morocco, and what do they require captures the most widely held understanding of
to scale their operations? entrepreneurial ecosystems, including the factors that
III. How are the current climate entrepreneurship constitute them and how they work. While the World Bank
ecosystem players in Morocco – mainly the network of Group has previously undertaken diagnostics in Bangladesh,
institutions in the public and private sectors whose activities Serbia, and Suriname for various sectors, the Morocco
and interactions initiate, import, modify, and diffuse new diagnostic is the first climate-focused Entrepreneurship
technologies – helping or hindering climate Diagnostic.
entrepreneurship in the country?
IV. How can the scaling up of emerging technologies be This report adopts a mixed-method approach. It is based on
better supported in Morocco? four forms of data collection and analysis undertaken from
V. How can Morocco’s existing entrepreneurship activity August-November 2016 (See figure 2). By using different
be more inclusive of women and youth? data sources, the team was able to triangulate the data and
gain higher validity and consistency for its findings and
The overarching aim of this report is to inform different recommendations.
ecosystem stakeholders in Morocco on how to spur and
sustain high-growth, green entrepreneurship and
innovation activity. At the same, this report also aims to
increase the awareness of and support to green
The structure of the report is as follows: Figure 1. Babson Entrepreneurship Ecosystem Model
I. A context section based on secondary data analysis seeks

to position Morocco’s current status in the entrepreneurship,
innovation, and climate-centered fields.
II. A findings section based entirely on primary data — both

survey and in-person interviews — presenting the main
outcomes of the assessment.
III. A recommendations section based on the findings and

analysis of the two preceding Sections.
Source: Authors

Figure 2. Climate Entrepreneurship and Innovation Diagnostic Data Collection Channels
Source: Authors

The city of Ouarzazate, located in the middle of a
bare plateau south of the High Atlas Mountains.
To the south of the town is the desert.
Photo: Arne Hoel / World Bank

Morocco’s Climate Challenge and
Economic Opportunity
The environment in Morocco is particularly vulnerable imperative. Indeed, it can have substantial lifetime effects
to climate change. From the sand dunes of Ouarzazate and benefits.
to the coast of Tangiers, Morocco faces many climate-
related challenges. These include: air pollution, solid In addition, Morocco is substantially energy dependent.
hazardous waste, soil degradation, and decreasing water About 90 percent of its energy comes from abroad. This
quantities and qualities. These conditions are slowly includes a combination of coal, oil, gas, and electricity6 —
intensifying — and have tremendous social and economic with a continuing strong reliance on petroleum.7 The
ramifications.3 government has responded to these challenges and
imbalances with a green-growth agenda. The government
Detrimental climate impacts, such as droughts, sea-level rise, has firmly oriented its policy toward climate change
and food scarcity could be limited through the reduction of mitigation, as well as the adaptation of multiple policy
emissions by 12 gigatons (Gt).4 Due to the substantial commitments to sustainable development.8,9
impact the recent drought had on agricultural production in
the early part of 2015, Morocco's real gross domestic In order to reduce its dependence on foreign energy sources,
product (GDP) growth declined nearly three-fold, that is, the government set a goal in 2008 of generating 42 percent
from 5 to 1.7 percent in 2016.5 It is clear that cutting the of its energy from renewables (mainly solar and wind) by
costs of climate change in countries like Morocco, which the year 2020.10 From 2009 to 2013 — further motivated by
has an economy reliant on positive climate trends, is concerns about energy security, economic development,
and poverty reduction — the government invested more

than US$2 billion in clean energy technologies and installed generation capacity in the country.16 Furthermore, as a
166 megawatts (MW) of capacity.11 result of the success of these investments, the renewable
energy target was increased to 52 percent. Although
Of the existing renewable energy, currently 90 percent government officials aim to create jobs through large-scale
comes from large-scale hydroelectric plants, with the renewable energy projects,17 further investment in the
remaining ten percent comprised largely of a mix of wind private sector will be key to attaining the country’s
parks, thermo-solar plants, photovoltaic solar installations, ambitious social, environmental, and economic goals.
micro-hydroelectric plants, and biomass treatment
facilities.12 In just under eight years, Morocco has made The private sector is the engine of economic growth with
substantial strides to reach its “green stimulus” goals. In this an important role in eradicating poverty and fostering
regard, it has been continuously recognized by the inclusivity.18 Increasingly, governments in developing
international community for its efforts. economies are realizing that in order to cultivate a
competitive, diverse, inclusive and thriving economy,
 In 2014, Ernst & Young ranked Morocco 4th of all investment in entrepreneurship and innovation will be
Middle East and North African (MENA) countries as the required.19
country with the highest level of potential in renewable
energy investment. By comparison, Jordan ranked 3rd.13 Climate entrepreneurshipwill be the driving force of the
 In 2015, the Pew Charitable Trusts ranked the country green economy. High-growth entrepreneurs and SMEs are
as the 7th best emerging market in clean energy propelling the industry and responding to climate threats
investment (and the only one in MENA). Kenya ranked through the creation and adaptation of green technologies
4th.14 and climate solutions, as well as through job creation.
 In 2015, according to WAMDA (a platform of programs Furthermore, according to the IFC, climate technology is
and networks that aims to accelerate entrepreneurship an area in which investments are expected to exceed nearly
ecosystems across MENA), Morocco had the most US$23 trillion for climate-smart investments in emerging
renewable energy projects in MENA, with an estimated markets between now and 2030.20
28 projects. By comparison, Jordan had 12 projects.15
In Egypt, Jordan, and Morocco, in particular, the total
By January 2016, state officials indicated that renewable climate-investment potential is estimated at US$265
energy accounted for 35 percent of the current electricity billion — with over one-third available for renewable
energy generation (US$97 billion); and 64 percent (US$169
billion) for climate-smart buildings, transportation,
industrial energy efficiency, electricity transmission and
distribution, and waste solutions. An earlier estimation of
the market (made before the 2016 Paris Agreement)
suggested that a quarter of this investment potential is
accessible to SMEs. This translates into a similar but
substantially larger opportunity for green entrepreneurs
operating in this space.21
Strengthening targeted support of the country’s climate

entrepreneurship ecosystem will boost job creation,
sustainability, and the formation of a stronger knowledge-
based economy.22 As the government already recognizes,
working with the private sector, civil society, and other
parts of the ecosystem is fundamental for climate-smart
development. Indeed, these partnerships could help mobilize
more investment to facilitate unique technology solutions
for the country.
Box 1.1 Entrepreneurship Macro-data Snapshot

This sampling of macro-level indicators measures various aspects of Morocco’s entrepreneurship ecosystem. It reveals
how the country compares to relevant regional and international counterparts in areas such as infrastructure, start-up
activity, and financing. Several trends emerge from these macro-level statistics and show Morocco’s comparability
with other strong regional players. For example, the ease of doing business is on par with the other middle-income
countries on the continent, such as South Africa. In fact, the statistics show that Morocco is considerably stronger
than other Middle East and North African countries. However, access to finance remains more problematic.
Figure 3. Benchmarking Morocco’s Key Indicators vis-a-vis Other Countries

MAIN
FINDINGS
The exact formula for what generates a “mature” or “thriving”
entrepreneurship ecosystem is conditional on the many
intersecting factors of its origin, and how they relate to each
other within a specified context. Thus, this diagnostic analysis is
rooted in the six-pronged Babson Entrepreneurship Ecosystem
model. It aims to reveal insights into the challenges that hamper
the creation, development, and existence of enterprises in any
given country.
Since the 2014 Global Entrepreneurship Summit in Morocco,

investment in the various facets of the country’s entrepreneurship
ecosystem have become a focal point of both the public and
private sectors. During this time, the foundation of Morocco’s
ecosystem solidified, and all the structures necessary for nurturing
climate entrepreneurship have reached a ‘start-up’ stage.
Nonetheless, the overall support environment requires more
targeted support. In particular, it will require favorable policies,
additional resources, and a resilient, entrepreneurial-minded
culture to inspire future growth.
There are a variety of reasons for the existence of these structural

barriers, as well as the fact that the gap in knowledge and access
persists. The following section aims to delve into these issues,
exploring the current situation of the Moroccan green
entrepreneur. It also brings to light the factors that have
contributed to Morocco’s current entrepreneurship ecosystem.
The holistic findings are based on the primary data collected,
including interviews with over 40 key stakeholders and a survey
of 334 individuals.
31 Morocco CEED • Main findings

Morocco’s Green
Entrepreneurs
The Moroccan green entrepreneur surveyed is young, educated, and started their business
because they wanted to be their own boss. These entrepreneurs are innovative and are
creating technologies and solutions to solve some of Morocco’s greatest environmental
challenges. This is occurring at a time when investment in solutions to combat the country’s climate
challenges is high — as well as a public necessity. Morocco is not their only target market, as many
have clients or customers in over 40 other countries (see figure 4 below). Indeed, many of these
entrepreneurs work in diverse sectors — from green IT to desalinization. Yet, broad recognition of
their ideas, and further participation in the field is limited due to a variety of social and operational
barriers common in a growing entrepreneurship ecosystem. These barriers include, among others, a
lack of mentors and/or market accessibility.

Figure 4. Profile of Morocco’s Green Entrepreneurs, based on survey results
Source: Authors

Case study 1: eLum
Product/Service Environmental impact
eLum offers a software-as-service product, dubbed the Energy OS  eLum supports reduction of carbon emissions by enabling solar
(Operating System). It employs artificial intelligence to help manage both energy (the electricity grid in Morocco is 700h/kWh).
on-grid and off-grid energy costs for industrial players. This solution  eLum also helps reduce losses linked to transportation of electricity
targets industrial and commercial customers seeking to gain insight and (estimated between 3 and 7 percent).
save money on their electricity bills and fuel consumption. In particular,  eLum’s product helps decrease dependence on polluting fossil energy
eLum is piloting an energy storage system coupled with a photovoltaic sources.
production unit that runs on their Energy OS.
Current and target customer market
Number of staff eLum’s first target customer is the automobile industry located in Tangier.
22 eLum aims to help the industry optimize production, storage and
consumption of renewable energy. Beyond that, the larger target is the off-
Location (national location and international if relevant) grid market in Africa, represented by the mines and the
Paris, France; Casablanca, Morocco telecommunications towers (with 400,000 towers off-grid).
Key value proposition
Year founded
eLum’s solution increases the value and profitability of both on-grid and
2016
off-grid energy projects, making it more attractive for industries to invest in
renewable energy production and storage. It helps its customers save at
Funding sources, amount
least 20 percent of their energy costs— and reduce their carbon emissions
Self-funded: 100,000 Moroccan Dirham (MAD)
by 30 percent.
Grants:
 AMICA: 50,000 MAD
 Banque Populaire: 50,000 MAD Competitive advantage
 Morocco Climate Innovation Center (MCIC): 50,000 MAD This solution represents a new opportunity for industries that relied on the
national energy costs to move off-grid, and potentially dramatically reduce
their energy costs. eLum has two strong competitive advantages:
Growth angle  Powerful algorithm based in artificial intelligence (AI) that forecasts
The market for energy management software has been growing by 30 the consumption of the plant coupled with the weather forecasts.
percent year-over-year, so a product that optimizes the yield for  The ability of the software to be plugged in any kind of photovoltaic
independent energy producers is well positioned. There is a large need for technology or brand.
effective energy management systems across the African continent,
especially in the telecommunications towers and the mining industry.

Box 1.2 Misconceptions about Green Entrepreneurs
There are several misconceptions about green entrepreneurs that limit the support they are currently receiving — and thus
their ability to scale up and make a lasting and larger impact on the green economy. First, green entrepreneurs do not always
identify themselves as such (nor do they necessarily receive support from “green”-focused incubators). As such, they not
being embraced by ‘green’-focused support organizations. They also sometimes lack the necessary recognition and
credibility for their pursuits.
A common misconception about green entrepreneurship is that the types of technologies or services they innovate are
mainly hardware in nature. However, based on the analysis for this report, more than 40 entrepreneurs claim to be
developing companies focused on Green IT, for example.
Second, of concern is the “new-to-the-world” or “cutting-edge” bias that currently exists in the Morocco’s climate
technology entrepreneurship ecosystem. Moroccan green entrepreneurs tend to be focused on creating new solutions to
climate challenges instead of using existing and proven technologies with clear models applied to a local country. The latter
can be an easier path to scale in developing contexts, not least because funders tend to be reassured when investing in these
types of businesses. Some support organizations are supporting entrepreneurs that have a new-to-the-world idea/technology
and an unproven business model — rather than actively plugging into global networks and resources for existing
technologies, and using validated and scalable business models that could then be replicated and adapted in Morocco by local
high-growth entrepreneurs.23
The final misconception is that all Moroccan green entrepreneurs are in the start-up stage. In fact, many existing mature
companies are also introducing new green products and spinning off new ventures. These have as much, if not more,
potential to grow green sectors overall. However, without recognition of green entrepreneurs beyond the start-up stage,
there has not been the kind of dedicated thought and calibration to the types of support needed beyond quite limited
initiatives, for the time being (such as those being undertaken by the Fast-Track-to-Market (FT2M) program of the Cluster
Solaire).

While there are no official statistics about the level of
entrepreneurship activity in Morocco, Startup Morocco, one of the
more influential stakeholders in the ecosystem, recently reported
that there are less than 200 active start-ups in the country, with the
bulk of activity concentrated in Casablanca and Rabat. This
compares to activity in more developed markets, such as in Paris,
France, where there are between 2,400 and 3,200 active tech start-
ups.24
Library at Mohammed V University at Agdal, Rabat. Photo: Arne Hoel/World Bank
1. Solo Founders Lack Co-founders to development of entrepreneurs’ soft skills, it is often blamed
Build High-growth Firms on Morocco’s educational system, and a culture that does
not value entrepreneurship. Reportedly, from primary to
college level education, students are encouraged to become
“[Students] are good in scientific skills and mathematics, employees with stable salaries, either working in the public
but they lack self-confidence and personal skills.” sector or for a major corporation. Although this limits the
- Adalia
available talent in the country willing to work for a start-up
firm, it also does not positively present entrepreneurship or
When asked to rank the skill level of entrepreneurs, 70
innovation as a viable career option.
percent of experts in Morocco found entrepreneurs to have
good technical skills, and 31 percent found them to have
business savvy. This exemplifies the skills gap that many As the Organization for Economic Co-operation and
entrepreneurs suggested may prevent businesses from Development (OECD) suggests, one of the Moroccan
reaching their full potential. While many respondents stated government’s key priorities should be to develop a
that support institutions are not sufficiently encouraging the comprehensive policy framework that ensures

Case study 2: Cleanzy
Product/Service Environmental impact
Cleanzy has created a new concept for an ecologically friendly, on- Cleanzy’s services significantly reduce water consumption per laundry
demand laundry service in Morocco. Cleanzy’s stores offer cleaning of cycle (50 to 70 liters in aqua cleaning versus 250 to 400 liters in dry
different types of textile products using biodegradable products. Their cleaning). Cleanzy does not use perchlorethylene (a classified
products do not use polluting solvents, such as perchlorethylene (a carcinogenic solvent banned in several countries); instead, it uses
classified carcinogen banned in several countries). The company’s biodegradable products in laundering.
premium quality and prices are competitive with those of traditional
cleaners, while also supporting environmental sustainability. Current and target customer market
Cleanzy currently has 400 direct customers in a premium neighborhood in
Number of staff Rabat, with a retention rate of 95 percent. Cleanzy is developing a
5; Near future: 8 employees as the store nears completion. business-to-business (B2B model to serve businesses (restaurants, hotels,
spas, and so on), and is preparing partnerships that will benefit their
Location (national location and international if relevant) franchisees.
Rabat
Year founded Cleanzy offers high-quality, eco-friendly laundry service for consumers,
2015 employees, and neighbors. More than 98 percent of laundry services in
Morocco use dry cleaning methods involving toxic perchlorethylene, which
Funding sources, amount have been banned in several countries. Cleanzy’s aqua cleaning
 Personal funds: 2.5 million MAD techniques avoid these toxic chemicals, and can prevent air and water
 Bank credit: 1.5 million MAD pollution. Furthermore, Cleanzy is currently building a brand in the
Moroccan laundry market, which lacks local brands. They will compete
Growth angle with existing global brands that are harmful for the environment and
This year, Cleanzy opened the first store in Rabat and is finalizing the public health, while still being well-positioned at the same price.
planning of three new stores in the coming months. Using a franchise
model, Cleanzy plans to open eight stores in the next two years, with the Competitive advantage
target of 20 stores in Morocco in the medium term. This expected growth Cleanzy has exclusive contracts with the suppliers who developed this
has the potential to create an additional 165 jobs. special aqua cleaning process. While consumers have the choice of
utilizing traditional cleaners, for the same price point, Cleanzy offers a
laundry service with best-in-class cleaning capabilities (keeping colors
vibrant and without deteriorating fibers), as well as environmental and
health benefits.
entrepreneurship is recognized and taught as a key 2. Too Few Mentors Limits
competency from the primary to the tertiary school levels.25 Entrepreneurial Growth
This would not only begin to transform the culture of
entrepreneurship, emphasizing more understanding and There are several sources of mentorship throughout the
respect for the field, but it would also inspire youth to ecosystem. These are either directly accessed through the
approach life with a more entrepreneurial attitude. In turn, Réseau Entreprendre Maroc network, using a variety of
more people will begin to start businesses, and provide structured mentor talks and training held by organizations
potential services and products that can contribute value- such as Secteur 21 and Startup Maroc. Alternatively,
added goods and services to the Moroccan economy. mentorship sources can be utilized through other ad-hoc
activities. However, entrepreneurs indicated that the ability
Furthermore, even with the current situation of uneven to find a solid, vested mentor who will support an
skills in the ecosystem, many entrepreneurs are not forming entrepreneur is difficult. Furthermore, many of the mentors
teams to overcome these gaps. While 46 percent of who do exist in the ecosystem tend to be more technically-
entrepreneurs are open to collaborating (forming teams and than business-focused in nature. Many are either foreign
partnerships), 43 percent of surveyed entrepreneur and do not understand the particular characteristics of the
businesses are solo-run. This not only exacerbates the skills Moroccan ecosystem, or are from corporations and have
issue, but also influences the amount and kinds of funding never acted as entrepreneurs themselves.
that entrepreneurs can access. These start-ups are often
founded by a technical expert (typically an engineer) with a “The most important [need] is not the investment itself,
great idea. Unfortunately, start-ups require much more than but more the coaching of the entrepreneurs.”
just technical savvy, including a range business skills, human - Maroc Numeric Fund
resource (HR), financial, and so on. These skills are typically
supplemented by a co-founder as a complementary skillset. “The problem is that bringing foreign mentors will help,
As financial experts emphasize, entrepreneurs who run solo but they won’t give the best advice, as they can’t understand
businesses rarely gain access to equity, venture capital (VC), the Moroccan problems.”26 There were a variety of reasons
or angel funding. It is considered to be a basic premise and suggested for this absence of available mentors, such as a
commonly held principle that investors look for teams lack of a “give-back” culture. As one stakeholder noted,
because no one person can build a high-growth business. “Entrepreneurship skills are hard to develop in Morocco

Case study 3: Evaptainers
Product/Service atmosphere due to food spoilage. The spoilage rate of fruits and
Evaptainers offers an electricity-free mobile refrigeration technology to vegetables grown in African countries is 45 percent. In high-temperature
keep food fresher, longer, using only sunlight and water. regions, produce typically spoils after only two days. With Evaptainers,
produce can stay fresh for two weeks with no energy consumption and
Number of staff minimal water usage.
7
Current and target customer market
Location (national location and international if relevant) The company has distributed 150 Evaptainers, mainly in the central region
Rabat, Morocco of Morocco (Ifrane). This first batch of units is intended as a proof of
Boston, USA concept. Once adjustments are made for a final prototype. Evaptainers will
start mass production and target small villages without access to
Year founded electricity. The ultimate target is to reach the 700 million people who live
2015 without refrigeration in the world.
Funding sources, amount Key value proposition

US$250,000+ in grants from the United States Agency for International Evaptainers creates dependable, cold-chain solutions without
Development (USAID): Development Innovation Ventures (DIV), the dependence on costly infrastructure, as their refrigeration solution runs on
National Geographic Society, the Massachusetts Clean Energy Center, and only sunlight and water. This enables small rural farmers to increase the
a sponsorship from the 3M company. percentage of their crops that go to market, thereby improving their
standard of living and putting fresher food in the hands of consumers.
Growth angle
Evaptainers is launching in Morocco as a pilot market. After a successful Competitive advantage
proof of concept in Morocco, Evaptainers plans to expand to other Evaptainers’ target market is people living off-grid who currently do not
countries in Africa, starting with Nigeria, where potential distributors have use refrigeration. Therefore, Evaptainers is not replacing another product.
already signaled interest. Most of the vegetables and fruits spoil quickly for these people living off-
grid. Evaptainer introduces a new, low-cost, transportable solution that
Environmental impact ensures they obtain the most value from their produce.
Evaptainers reduces greenhouse gas emissions related to conventional
refrigeration. It also reduces carbon dioxide (CO2) released into the

because there is a serious lack of mentors that are willing to 3. Women Entrepreneurs Could Benefit
give back.”27 This leads to weaker levels of trust between from Dedicated Support
entrepreneurs.
McKinsey Global Institute reported that by 2025, US$12
trillion could be added to the global GDP by advancing
Figure 6. Top 5 Sources of Mentorship
gender equality.30 Closing these inequality gaps and
encouraging equal opportunity is a clear objective for any
country. This is a fact his Majesty, the King Mohamed VI,
exemplified through a 2014 speech: “Female
entrepreneurship holds so much promise for our economies
and our societies that we all need to encourage it; otherwise,
we will be depriving ourselves of huge potential.”31
“Women need a dedicated program to empower them.”

- Espace Bidaya
The current situation for women entrepreneurs in Morocco

Source: Authors is multifaceted and complex. The interview respondents —
of whom 34 percent were women —were unable to express
“Young entrepreneurs are not trusted by the market,” was a a single cause to explain the difficulties women
statement consistently heard during interview. Indeed, the entrepreneurs face. In fact, many did not think there was an
lack of trust is often viewed as ageist.28 In fact, while serial issue at all. In this regard, it is important to note that only 25
entrepreneurs were the highest rated mentorship source by percent of surveyed entrepreneurs were women, and only
surveyed young entrepreneurs, the same serial entrepreneurs 33 percent of entrepreneurs found there to be an uneven
were reported as not investing in helping new, younger playing field for women active in entrepreneurship. While
entrepreneurs navigate the ecosystem. As noted in the many noted the visibility of a high number of women
interviews, “There is a critical lack of entrepreneurs that operating in positions of power, in reality, only about 10
want to share their experiences.”29 percent of Moroccan women are active in entrepreneurship,

and very few of them are beyond the proof of concept Women entrepreneurs are commonly viewed as only
stage.32 When compared to the data of the Global concentrating in industries with lower capital intensities and
Entrepreneurship Monitor (GEM) regarding entrepreneurial lower average returns to capital. Many experts maintain that
intentions33 in the broader Middle East (innovation-driven) this tendency lowers financial performance.36 However, the
region, where 41 percent of women (and 46 percent of men) opportunity for women entrepreneurs to claim a stake in the
expressed an interest in starting a business, it is clear that climate technology entrepreneurship market is high.37
more dedicated initiatives and a focus on the lessening Furthermore, women’s involvement in entrepreneurship is
various cultural barriers are essential if policy-makers and becoming more lucrative, according to recent first round
other stakeholders are to provide better support for women data from the United States. Investments in companies with
entrepreneurs.34 at least one female founder outperformed investments in all-
male teams by 63 percent; in their own words “women are
Cultural expectations (social and familial responsibilities) winning.”38
were commonly stated as a reality, but not necessarily a
barrier for women entrepreneurs. Nonetheless, young Yet, there are several constraints for women to overcome
women are most active in social entrepreneurship. before they can sufficiently participate as economic actors in
International entrepreneurial education non-profit, Enactus, Morocco. These include the lack of access to information,
has a high participation rate of at least 90 percent among networks, financing, and by extension, markets and inputs.39
women in social entrepreneurship, with heavily-attended Although women said that they face the same legal barriers
training and activities. CEED Morocco, which operates in as men, they have a particular difficulty in accessing funds,
the early-stage incubation space, reported that of the 200 and often experience other forms of implicit bias.
entrepreneurs in their program, nearly 30 percent are
women.35 Further, several women-focused hackathons and Moroccan women stated one of the biggest barriers to
competitions are increasingly being hosted by organizations doing business was the lack of local mentors (specifically
such as the World Bank. However, beyond these few women mentors) to help guide and shape their ideas,
examples, there are not many other existing programs in the operations, and businesses as a whole. A major barrier to
ecosystem to support women entrepreneurs. women operating in the realm of entrepreneurship is the
lack of dedicated support programs and mentors to help

quell insecurities, educate, and support women’s particular
needs throughout the business growth stages. As one
respondent stated, “There are great women managers from
large corporations, but they are not inspiring role models in
entrepreneurship: a woman [who] built something from
scratch.”40
Box 1.3 Women’s Support Programs around the World

Of all the existing incubator-type programs available
globally, only a small percentage have a women-centric
focus. However, existing programs from Colorado, US
(MergeLane) to Lagos, Nigeria (She Leads Africa), and the
mentorship/network-focused Pan-African (Graca Machel
Trust Women’s Rights or Economic Advancement Program)
equally suggest that women-focused programs can provide
the right environment to nurture ideas, collaborate, mentor,
and teach women how to navigate traditionally male-
dominated industries. For example, from 2014 to the present,
MergeLane’s accelerator cohorts of high-growth Soukaina and Mouna work in the marketing department at Label Vie
entrepreneurs have raised US$20.2 million in funding, and headquarters in Rabat. Photo: Arne Hoel/World Bank
created 231 jobs — including 38 leadership roles for women.

Case study 4: Biodôme du Maroc
Product/Service
Biodôme is the first Moroccan company specialized in developing bio-gas Environmental impact
facilities for farms. These facilities take organic waste from agricultural  Recycling waste decreases carbon emissions from agriculture waste.
activities and transform it into bio-gas and compost. The farms can then  Production of organic fertilizer offers an alternative to chemical
use the bio-gas for their energy needs, helping secure energy fertilizers, and lowers pesticide use.
independence. The compost can be sold as fertilizer to other users or back  Using compost fixes the carbon in the soil, which helps water
to Biodôme. The methanation process is accomplished via a cave where retention and decreases runoff into waterways.
farmers deposit daily animal waste, organic waste and used water.
Biodôme is also working on a compost solution for urban users. Current and target customer market
Biodôme’s current customer is a local farm in the region of Khouribga.
Number of staff Biodôme built a biogas unit for the farm’s animal waste as a proof of
6 concept. With this successful demonstration, Biodôme is planning to
develop biogas facilities for other regional farmers. Concurrently, Biodôme
Location (national location and international if relevant) targets hotels in urban areas for their compost production unit.
Khouribga
Year founded Biodôme’s technology will reduce household waste, which accounts for
2013 over 70 percent of total waste, and costs cities over 400 MAD/ton to collect
and destroy. For farms and rural operators, Biodôme offers a way to self-
Funding sources, amount generate energy safely, as well as to reduce agricultural waste.
Morocco Climate Innovation Center (MCIC): 500K MAD (through the fast-
track-to-market program) Competitive advantage
Biodôme’s bio-gas facility can produce enough energy to replace all of the
Growth angle industrial gas currently being purchased by the farmers for heating,
Biodôme is developing two solutions for rural and urban usage: lighting, pumping water, and other uses. For example, in the pilot farm,
 A unit for bio-gas production from animal waste or organic waste, to bio-gas production replaced around 10 bottles of gas used for energy
be used in farms and rural areas. (which costs ~400MAD /month, or 4800 MAD/year).
 A unit for compost production in urban areas, for users such as hotels.
Biodôme also has future goals to build a distribution network for
compost within the cities.

“The most important [need] is
not the investment itself, but
more the coaching of the
entrepreneurs.”
- Maroc Numeric Fund
Photo: Arne Hoel / World Bank
Morocco’s Burgeoning
Climate Entrepreneurship
Ecosystem
1. A Perceived Lack of Policy Support to
The lifecycle of an entrepreneur, from the proof of
(Green) Entrepreneurs
concept stage to high-growth, requires specialized and
“The government […] is not involved in entrepreneur- tailored support, and funding and knowledge. These
ship. They don’t understand it and don’t value its elements are key to spurring entrepreneurial activity and
impact.” cultivating the ecosystem that supports it. This can include:
(i) an educational structure that embeds entrepreneurial
His majesty King Mohammed VI has described attitudes and practices into its curriculum from the primary
entrepreneurship and innovation as “the twin values that level through university; (ii) available financing
are both stepping stones towards freedom, social mobility mechanisms for each phase of product/idea development;
and prosperity...”41 Nonetheless, entrepreneurship is still a (iii) market information to accurately assess supply and
relatively new field in Morocco. In reality, the role of demand; (iv) a favorable culture that emphasizes the need
policy is underdeveloped, and the misconceptions about for and importance of entrepreneurship; and (v) support
this burgeoning field have resulted in an ecosystem that for institutions to provide for the needs of entrepreneurs
could benefit from high-level policy support. from incubation to acceleration through growth.
The Moroccan government is acutely aware of its Currently, from the entrepreneurs’ perspective, there is a
potential to increase economic opportunities through the lack of knowledge about existing government initiatives
green sector. However, its awareness of the opportunities (64 percent of entrepreneurs found communication with
and potential gains from (climate) entrepreneurship have the government difficult). While individuals and
yet to be harnessed in terms of an overarching policy. This institutions who work more closely with the government
is a fact not lost on the entrepreneurial community. In this are aware of these initiatives (and others in the pipeline),
context, 62 percent of surveyed entrepreneurs stated that the majority of entrepreneurs see a fragmented,
overall government support is lacking. uncoordinated government role in entrepreneurship. They
also find that there is a lack of support from private
Nonetheless, it should be noted that since 2014, the institutions in general. As many entrepreneurs stated,
government has made notable strides in centralizing “Government agencies, incubators and the financial
information and providing incentives, including: (i) auto- industry [need to] work together to support
entrepreneurship status42; (ii) various tax benefits for hiring entrepreneurs.”43 The Italian Startup Act, or the draft
staff at young companies; and (iii) a one-stop investment Tunisian Startup Act, are examples of policies aiming to
shop spearheaded by the Centre Régional d’Investissement; clarify government support to the entrepreneurial space.
and so on. Current initiatives for climate entrepreneurs are
fragmented between ministries (including the Ministry of
Environment, and the Ministry of Industry), as well as
other organizations with weak overarching support for
entrepreneurs.

Figure 7. The Entrepreneurial Process
Source: Authors
Moreover, there is work to be done to improve the overall doing business in Morocco. This may be due to the fact that,
environment for doing business. This starts with although overall doing business is not unfavorable, doing
streamlining administrative processes (paperwork, permits, business as a start-up--which is a very particular type of
and so on)44 across ministries. Although Morocco ranks 40 business is. Even with the online one-stop shop improving
out of 190 countries in the World Bank’s Doing Business Morocco’s rankings in 2017, many entrepreneurs still find
rankings — compared to Egypt (39) and France (27) — the government support of entrepreneurship falling short of
nearly 50 percent of surveyed entrepreneurs for this report potential, with 37 percent of entrepreneurs ranking this as
found these administrative processes to be inconvenient to the biggest policy barrier in Morocco.

2. A Growing, but Fragmented private player (for example, the Office Chérifien des
Ecosystem Phosphates [OCP] Entrepreneurship Network), or external
donor program-related financing, which poses a larger
Many of the pieces necessary for a healthy entrepreneurship sustainability issue.
ecosystem to thrive are in place in Morocco. This includes
active support organizations, a willing government, Also, although there are quite some active players in these
education and research centers with potential for impact, ecosystem roles, and while each occupies areas essential to
and investment from the international community. entrepreneurship promotion and support, they are
disconnected. As such, they operate insufficiently as an
Morocco’s ecosystem is comprised of a number of local and ecosystem. As one interview respondent stated, “The
international support organizations, with all mostly ecosystem is still young. Every player is [still] trying to find
concentrated in the early-stage support space (that is, Impact his space.”45
Lab; Startup Maroc; Espace Bidaya; Dare inc.). Many of
these organizations have been set up recently and, in Most respondents suggested that there is a disconnect within
particular, after the Global Entrepreneurship Summit (GES) the ecosystem that is exacerbated by a lack of
summit. The ecosystem also includes government ministries, communication among the key players, namely the
financial institutions, and educational institutions. A few of government and the private sector, but also among the
these programs have a partial-to-entirely-based climate private sector stakeholders. This results in insufficient
technology focus (that is, MCIC/Cluster Solaire,). support for entrepreneurial activities. Based on primary data
collected, there are several robust connections within
Furthermore, there are few providers for a variety of support individual silos. However, as a whole, each stakeholder
services, such as training or financing. Also, most of the largely operates in isolation. One entrepreneur ‘wishes,’
ecosystem is either highly dependent on funding from one “[for] the ecosystem [to] be less isolated, [with] players
working together” (Figures 8 and 9).46

Figure 8. Morocco’s Climate Entrepreneurship Ecosystem, mapped by category
Source: Authors

Figure 9. Morocco’s Climate Entrepreneurship Ecosystem, mapped by connections
Source: Authors

This reality is exemplified by the relatively low linkages in 3. Entrepreneurs Lack Later-stage
the ecosystem dedicated to research/academia and Support
technology transfer. If these aspects were better connected,
it could boost the commercialization of green technologies, The general consensus among interview respondents was
but most particularly to financiers, which most support that early-stage support exists. However, the quality and
organizations seem to be quite disconnected from, which is professionalism of services is somewhat lacking. Further,
problematic from a growth standpoint. beyond the need to connect and improve existing
infrastructure, there is a clear gap in later-stage support
Furthermore, with a range of incubator offerings, programs. This lack of later-stage support is symptomatic of
international interventions, and government actions the larger issue; as one stakeholder noted, “The ecosystem is
occurring with little co-ordination, basic service gaps are growing, but the pipeline is not.”48
not being filled. Therefore, the forward momentum of the
field is hindered, and entrepreneurs are not being optimally As many interview respondents stated, competitions, grants,
supported. As the Kauffman Foundation suggests, an and other forms of seed funding are accessible through
entrepreneurship ecosystem is like a rainforest, and the enablers, such as Réseau Entreprendre Maroc (Morocco
challenge is facilitating connections between all parts of the Entrepreneurship Network) and Startup Maroc. However,
ecosystem so that they are working together and reinforcing without later-stage sources of financial support and
each other's efforts.47 There are a few enablers, such as InJaz, acceleration services, it is difficult for many entrepreneurs,
Enactus and mCISE, which offer educational options, (or who are at this critical juncture, to fully scale their
Startup Weekend with competitions). However, businesses. This is also linked to the fact that entrepreneurs
overarching and structured support in acceleration beyond are not being optimally prepared for acceleration by current
the seed stage, as it is internationally recognized, is currently incubation support, including matchmaking efforts for solo
lacking (beyond ad-hoc programs). founders. There are a lack of services focused on support
beyond the early stages, as can be seen from figure 10.
“Support in Morocco has developed a lot at the seed
stage, but beyond [this stage] it just stops.”
- Evaptainers

Figure 10. Mapping Startups and their Enablers by Entrepreneurial Stage
Source: Authors

Box 1.4 Acceleration Support can Help Businesses Scale
While acceleration programs often provide funding, mentorship, and other essential services to help entrepreneurs scale their
businesses beyond the startup stage, it is not a guaranteed ticket to success. Whether an entrepreneur works in the
technology, fashion, or food science field, the core benefit of acceleration is the boost it can provide, initially for funding —
and, over time, in terms of exposure to relevant influential players, mentoring, and knowledge in an ecosystem. There are
various types of acceleration programs in countries around the world, each consisting of the same central tenets of support.
However, each are uniquely designed to the contexts in which they provide support.
Climate KIC Accelerator, the European Union’s only acceleration program focused on climate impact and clean technology
commercialization, offers a three step, 18-month program to provide cleantech entrepreneurs/startups with the knowledge,
resources, tools and coaching necessary for success, including:
Step 1: Fundamentals, that is, finding a market niche, and developing a financial model to scale a business.
Step 2: Validation in terms of grant funding, often up to €25,000 to talk to customers and verify any business assumptions.
Step 3: Take-off in which entrepreneurs can receive up to €50,000 in seed funding; find launch customers, development
partners, and investors; and form partnerships that can help an entrepreneur scale.
In addition, KIC requires an equity percentage in return for grants and all other services received through the program.
Finally, this sort of acceleration program can be applied in more developing country contexts. For example, the Ghana
Climate Innovation Center applied innovation models from Silicon Valley to encourage the growth of firms working in the
green technology space in the country, and in the developing world more broadly.
Sources:
http://www.climate-kic.org/for-entrepreneurs/accelerator/
Climate Technology Program In Brief: No. 4

Case study 5: Kilimanjaro
Product/Service  One ton of bio-diesel reduces CO2 by 2.6 tons compared to traditional
Kilimanjaro collects used cooking oil from restaurants and hotels in diesel.
Morocco, which it then processes to sell to traders and bio-diesel  Reduction of wasted oils and fatty acids in discharge pipes will lessen
manufacturers internationally. It also supplies fatty acid products. water pollution that can impact both human and ecological health.
Number of staff Current and target customer market

70  Customers of Kilimanjaro are global traders mainly in Europe. It is
currently focused on developing the suppliers.
Location (national location and international if relevant)  Kilimanjaro collects from around 2500 locations. They target growth
Casablanca (HQ) to 10500 locations. Of these suppliers, there are around 65 large
Ain Sebaa (Warehouse and production unit) accounts (e.g. McDonald’s, KFC), with the rest local shops and
businesses.
Year founded  Kilimanjaro plans to develop large industries that produce fatty acids
2008 such as olive oil fatty acid or fish acids. Kilimanjaro also plans to
develop slaughterhouses. These three products (used oils, fatty acids
Funding sources, amount and animal fat) can then be inputs for biodiesel.
Personal funds and credit (2008-2015)
20 million MAD debt for investment (2016) Key value proposition
Kilimanjaro collects a waste product from a large network of suppliers.
Growth angle These are waste products that would otherwise pollute water channels.
Kilimanjaro is looking to grow its collection of oil, as well as fatty acids. It The company then repurposes it for bio-diesel production. By expanding
also plans to develop animal fat supplies from slaughterhouses. Beyond its reach to household consumers, Kilimanjaro aims to raise
finding more suppliers, the company plans to develop its production of environmental awareness, and create value from ordinary kitchen waste
bio-diesel and distribute it locally to the industry sector. Kilimanjaro as well.
currently works with businesses, but plans to target households for oil
collection by raising awareness on sustainable waste management. Competitive advantage
Households can donate plastic, cartons and used oil. Kilimanjaro’s competitive advantage is its large network of suppliers. It has
secured supplies from some of the largest restaurant chains in Morocco,
Environmental impact which ensures a sustainable supply source for the company.
 Bio-diesel emits 88 percent less carbon than traditional diesel.

4. Few Corporate and Private entrepreneurship programs, which are commonplace in
Foundation Linkages to Boost more developed ecosystems.
Ecosystem
A benefit of the ecosystem would be for corporations and
Corporations and large private foundations have few links private foundations to work with a select number of startups
to the Moroccan entrepreneurship ecosystem. Apart from to give them the opportunity to grow. For example, the
OCP Foundation, several banks making small corporate Shell Foundation supports green entrepreneurs who are
social responsibility-type contributions to the ecosystem, working to provide access to clean energy services for low-
and some mentors who work in the corporate world, there income communities in developing countries. Programs like
is little trace of financial support or other significant Shell’s have been fundamental in East Africa and India.
They help to fill crucial gaps in ecosystems like Morocco’s
that have yet to fully embrace and bolster
green entrepreneurship.
Figure 11. Top sources of funding connections for entrepreneurs, based
on survey
5. Funding for Start-ups
Which of the following actors have given you funding connections?
Limited by Risk-averse
Investors
Seventy-seven percent of entrepreneurs

found the strongest financial support
channel to be family and friends. While
this is a common occurrence in nearly
every start-up ecosystem, almost every
other Moroccan ecosystem actor received
an extremely low favorability rating vis-
a-vis financing and most other forms of
financial support (figure 11).
Source: Authors
Eighty-four percent of surveyed entrepreneurs were self- ventures. This pivot was suggested to have been influenced
funded in the early-stages. With regard to later-stage by several recent failures in the ecosystem and a general
support, 38 percent of entrepreneurs found it difficult to disappointment in its own early returns on investment.
access funding, including loans, angel investing, and As a result of these early trials, many investors also do not
venture capital funding. This indicates that it is the biggest fully embrace the common mindset of an investor: someone
financial barrier to doing business in Morocco. As one whose knowledge, experience, and guidance play an
respondent stated, "There is a critical need [for] structures essential role as capital in their investment. The World Bank
[such as] VCs (venture capital firms) that will [help] start- Group has finalized a program aimed at boosting equity
ups reach a critical development level.”49 investments to entrepreneurs, and this should help to
somewhat fill this gap.
Beyond the difficulty of accessing funding, entrepreneurs
found the risk-appetite among investors to be the biggest The Morocco Piloting Equity Financing for SMEs project is
cultural barrier to doing business in Morocco. It was an integrated approach to building early-stage risk finance
commonly stated that investors, including (potential) angel in Morocco, particularly by crowding in private sector
investors, seek stable investments. They are more likely to investors. It has three key elements. First, it aims to establish
invest in real estate than a new start-up venture. Some think a seed co-investment fund that will match investments from
this harkens back to the lack of a “give-back culture” in the local investors on a deal-by-deal basis for young innovative
ecosystem. As one stakeholder suggested, “some rich people firms. Second, it will support the establishment of several
invest in start-ups for their own public relations [PR] and co-investment venture capital companies combining
for their image.”50 government and private investment funds. These would be
Only 12 percent of surveyed entrepreneurs found it “easy” run by private sector fund managers. Third, it will provide
to access investors with valuable expertise and support. some support to strengthen the entrepreneurship ecosystem.
Maroc Numeric Fund (MNF) is one of the country’s only However, beyond this, the question remains of how to
operational VC-type institutions. MNF’s initial focus was further channel funds and/or de-risk investments into green
on supporting early-stage tech startups. However, in recent businesses, which continue to be perceived as more risky by
years, it has shifted to more innovative growth-centered investors.

Case study 6: Farasha
Product/Service  In 5 years, Farasha plans to grow to 110 employees (10
Farasha offers solar field diagnostic services for improving performance administrative and commercial staff, 20 in R&D, and 80 in
and reducing operation and maintenance costs of large-scale solar plants. sixteen solar power plants).
Farasha can help concentrated solar power (CSP) and photovoltaic (PV)
plants to detect and measure thermal leakages, as well as the need for Environmental impact
cleaning through a mobile unit (vehicle or drone). Farasha helps improve solar power’s return on investment, making the
clean energy source more attractive to businesses and investors. Its
Number of staff product also reduces water consumption in the solar field cleaning
5 process.
Location (national location and international if relevant) Current and target customer market
Rabat Farasha’s targeted customers are large-scale CSP and PV operators in
Middle East and Africa region.
Year founded
2016 (incubated in the MCIC since 2014) Key value proposition
Farasha improves the performance and reduces the costs of large-scale
Funding sources, amount solar fields. Its diagnostic services can help plants avoid an environmental
 ~ 650,000 MAD disaster. For example, it can detect if there is a leakage of heat transfer
 Equity: 100,000 MAD fluid (by tracking hundreds of kilometers of oil piping).
 PACEIM Prize 2014: 35,000 €
 MVP22 Prize 2016: 50,000 MAD Competitive advantage
 MEETAfrica Prize 2016: 15,000 € To date, the cleaning of solar power plants is done periodically, without
optimization, and there is no specific method to measure the heat
Growth angle produced. Checking is done visually by the operators. Farasha’s solution
 Farasha plans to have a first project validated with Noor 1, and enables plants to measure their statistics automatically, with real-time
expand with other projects in Morocco and in the Middle East alerts if there is an issue.
and Africa region.
 In 3 years, Farasha plans to grow to 35 employees (5
administrative and commercial staff, 10 in research and
development [R&D], and 20 in four solar power plants).

Box 1.5 French and British Investor Financial Incentives
French Tax incentives for Investment in Start-ups
 Deductions on income tax (Impot sur le Revenu): deduction of up to 18 percent of the amount subscribed to the capital
of unlisted companies.
 Deductions on the solidarity tax on wealth (ISF): deduction of up to 50 percent of the in-kind or cash contributions
made toward the initial capital or capital increases of an unlisted company.
British Seed Enterprise Investment Scheme (SEIS)

In order to stimulate entrepreneurship and kick-start economic growth, the British Seed Enterprise Scheme was
implemented in 2011 by Chancellor George Osborne. It offers tax efficient benefits to investors in return for investment in
small and early stage star-tup businesses in the United Kingdom. A few details about the scheme include:
 SEIS investors can place a maximum of 拢 100,000 in a single tax year, which can be spread over a number of companies.
 Investors can receive up to 50 percent tax relief in the tax year the investment is made, regardless of their marginal rate.
Some countries, including France and the United Kingdom, 6. Market Access Not Widely Available
have investment incentives for individuals to invest in start- for Entrepreneurs
ups (Box 1.5). Tapping into international sources of
financing for green entrepreneurs and working on novel
Entrepreneurs commonly deemed the Moroccan market to
financing mechanisms (such as blended finance / results-
be small and difficult to access, with almost 50 percent of
based funds) can be an alternative way to boost funding to
surveyed entrepreneurs finding the market size and demand
this sector.
unfavorable for doing business. Experts and entrepreneurs
agree that the public market is virtually inaccessible, with
opportunities reserved for larger, more established, and
often international companies. Moroccan entrepreneurs
who are seeking funding and attempting to procure public
projects are often plagued by a perceived lack of maturity.

7. Additional Market Information
“Startups are automatically excluded from public Necessary for Doing Business
bidding where they should be prioritized.”
-mCISE Fifty-four percent of entrepreneurs noted there was a lack of
access to market information, viewing this as the biggest
Between 2009-2013, the Moroccan government invested $2 market barrier to doing business in Morocco. As a result,
billion.51 Yet, few of those funds have gone to local entrepreneurs often start their businesses in reverse. Rather
entrepreneurs. As one entrepreneur noted, “Large projects than trying to solve a problem or fill a gap, many Moroccan
are developed by large foreign companies, [and] the entrepreneurs create a technology or solution before
environment is not adapted for small Moroccan companies sourcing demand or determining market fit. This can
to be included.”52 While the government has recently potentially stunt the development of a start-up, as well
increased its investment in clean energy, local green hinder its potential to scale.
entrepreneurs are not yet receiving significant opportunities
to play a role. There are a few organizations that aim to address this issue.
For example, the International Youth Foundation, which
Agencies like MASEN encourage the growth of the green conducts research into agricultural industries, helps to find
economy, and entrepreneurs and SMEs by creating biddable opportunities in the market for associated entrepreneurs.
projects, for example, for green mosques or public lighting The Moroccan Center for Innovation and Social
in Marrakech. Further encouraging small and growing Entrepreneurship (mCISE) trains entrepreneurs to develop
companies to be involved in these bids would help them market-oriented products and services. Official networks,
grow. It would also help validate new technologies, as is such as Réseau Entreprendre Maroc, aim to use their
done in South Africa, with regard to many public sector international reach to open potential markets to
renewable energy tenders.53 The capacity and desire to take entrepreneurs and guide them along the way. Yet, these
on larger-scale projects will also increase over time. initiatives are few and far between. In this context, there is a
lack of available ecosystem players that can multiply the
necessary guidance and support to entrepreneurs wishing to
navigate and operate in these markets.

Ecosystem actors and local and foreign investors are also information is largely inaccessible to the ecosystem and
handicapped by a lack of available market information, as anyone interested in it. As a result of the missing context
they require similar information when navigating the about the level of entrepreneurial activity, the outcomes of
Moroccan market. Twenty-four percent of surveyed experts past and current investments, as well as unfavorable policies
expressed the view that information about the market was toward foreign investment, “international investors are not
lacking. Experts interviewed repeatedly stated that market very interested in Morocco.”54
Box 1.6 GreenCape: Providing South Africa with Green Market Intelligence
GreenCape, a South African non-governmental organization (NGO) mandated by the Western Cape Government with
working in the green technology space, produces market intelligence reports about the green economy. This includes
sector-focused information, market opportunities and challenges, and a general overview of investment opportunities for
both investors and businesses interested in, or already operating in, the green space.55 This information is accumulated
through engagement with various facets within the country’s ecosystem, including businesses, investors, government, and
academia. GreenCape aims to play a key role in removing barriers to the growth of green entrepreneurs and the green
economy as a whole.
Over the past three years, GreenCape has written annual market intelligence reports about: utility-scale renewable energy;
energy services; sustainable agriculture; the waste economy; and water.
Source: http://www.green-cape.co.za/

RECOMMENDATIONS
Morocco’s potential for climate
entrepreneurship is high, and the country’s
dynamic high-growth entrepreneurs are helping
lead Morocco toward its green growth goals. By
scaling innovative business solutions to local
climate challenges, these entrepreneurs are
benefiting not only Moroccans, but Africans across
the continent as well.
Morocco has a young and highly educated

workforce, and bountiful natural assets. It has a
potentially big economic opportunity to play a
leading role in climate change adaptation and
mitigation both in Morocco, as well as abroad.
Moreover, many young Moroccan entrepreneurs
have already started their businesses with an
international mindset, and are working in various
countries throughout the world.
Although the potential for climate

entrepreneurship is high, as the findings in the
report demonstrate, there are various constraints
weakening the momentum for entrepreneurship.
These constraints hamper Morocco’s potential to
create jobs and increase overall economic growth.
However, these are not unsurmountable
challenges.
63
Recommendations
Improving the overall ecosystem will require investment in several key areas, such as policy,
financing, markets, and culture. In particular, a coherent and pro-active national entrepreneurship
policy would set the tone for dynamism throughout the sector. Furthermore, this would help lay the
official foundation for entrepreneurship, while ideally easing the culture of risk around securing funding
for the earliest stages of activity. Executing a well-crafted policy is often a lengthy and difficult cross-
governmental process. However, the benefits of achieving this would have a lasting effect across all
entrepreneurial sectors, especially with regard to green entrepreneurship. For example, countries such as
Italy have been pioneering entrepreneurship policy, through the Start-Up Act.56
Pending this reform, Morocco may wish to explore the following pragmatic areas of thematic focus,
some of which are being explored as part of IFC project implementation.
64 Morocco CEED • Recommendations

ENDNOTES &
BIBLIOGRAPHY
Endnotes
[1] “Climate-smart development: adding up the benefits of actions that help build prosperity, end poverty and combat
climate change.” World Bank, 2014.
[2] The team defines climate/green entrepreneurship as the process of developing a new business or a new product line from
an existing business for purposes of climate mitigation, adaptation, or other positive environmental benefits.
[3] Energy and Development at a Glance: Country Fact Sheet Morocco, German Watch, 2016,
[4] Green to Scale: Low-carbon success stories to inspire the world. Sitra, 2015.
[5] Global Economic Prospects: Divergences and Risks. World Bank, 2016.
[6] Morocco. International Energy Agency, 2014.
[7] 100% Renewable Energy: Boosting Development in Morocco. World Future Council, 2015.
[8] The Green Economy in Morocco, United Nations Economic Commission for Africa, 2014.
[9] This includes: the Plan Maroc Vert (green growth) for agriculture, water resource management, Vision 2020 for
ecotourism, and a National Energy Policy, which was adopted in 2009. The energy policy comprises five main strands to
provide support for energy efficiency and renewable energy programs. Additionally, as a key component of Morocco’s
National Sustainable Development Strategy, a National Charter for Environment and Sustainable Development was adopted
in 2012. The Charter strengthens integration of the environment in all public and sectoral strategies, and a framework law
(99-12 Model Law on the Environment and Sustainable Development Charter) was enacted in 2014 to help operationalize
the Charter’s efforts.
[10] National Sustainable Development Strategy, Kingdom of Morocco, 2012.
[11] Power Shifts: Emerging Clean Energy Markets. Pew Charitable Trusts, 2015.
[12] Morocco Country Commercial Guide. U.S. Export Agency, 2016.
[13] Cleantech Survey Report: Middle East and North Africa, 4th edition. Ernst & Young, 2014.
[14] Pew Charitable Trusts, 2015.
[15] “MENA’s Cleantech startups: unlocking the path to scale and solve environmental challenges”, WAMDA, 2016.
[16] Office National de Electricité et de l'Eau Potable (ONEE), 2016.
69 Morocco CEED • Endnotes & Bibliography

[17] Report: Morocco, “Morocco sets bold targets to boost renewable energy generation capacity,” Oxford Business Group,
2015.
[18] “A Thriving Private Sector at The Heart of an Inclusive Society,” The European Commission, 2016.
[19] High-Growth Entrepreneurship, a Preliminary Literature Review. infoDev, 2016.
[20] “Climate Investment Opportunities in Emerging Markets: An IFC analysis.” IFC, 2016.
[21] Building Competitive Green Industries, infoDev, 2014.
[22] WAMDA, 2016.
[23] The World Bank Group’s Innovation and Entrepreneurship Unit is currently working on a program, “Market
Connect”, with different local partners in Ethiopia, Kenya and South Africa, as well as global corporate partners such as the
Shell Foundation. The program aims to forge B2B technology and knowledge matchmaking on a larger scale.
[24] L’usine Nouvelle “Startup Maroc, l'usine 脿 fabriquer des jeunes pousses”. http://www.usinenouvelle.com/article/maroc-
l-ete-des-startups-1-10-startup-maroc-l-usine-a-fabriquer-des-jeunes-pousses.N342781
[25] Implementation of the “Small Business Act” for Europe in the Mediterranean Middle East and North Africa. OECD,
2014.
[26] Secteur 21 Interview.
[27] OCP Foundation Interview.
[28] mCise Interview.
[30] “The power of parity: How advancing women’s equality can add $12 trillion to global growth.” Mckinsey Global
Institute, 2015.
[31] Royal Message to The 4th Global Entrepreneurship Summit, His Majesty King Mohammed VI, Marrakech, 2014.
[32] Association of Women Entrepreneurs in Morocco (AFEM), 2015.
[33] Entrepreneurial intentions refers to the percentage of the adult population between 18-64 years of age (excluding
individuals already engaged in any stage of entrepreneurial activity) who intend to start a business within the next three
years.
[34] Women’s Report, Global Entrepreneurship Monitor, 2015.
[35] http://ceed-morocco.org/

[36] “Gender and the Business Environment for New Firm Creation.” Leora Klapper, Simon Parker, World Bank Research
Observer, 2011.
[37] http://10years.firstround.com/
[38] Klapper, Parker, 2011.
[39] Klapper, Parker, 2011.
[40] New Work Lab Interview.
[41] His Majesty King Mohammed VI, 2014.
[42] Any individual carrying out an individual industrial, commercial or craft activity, or service provider, whose annual
turnover (CA) received does not exceed 500,000 MAD for industrial/commercial/crafts and 200,000 MAD for services.
[43] Entrepreneur with the Morocco Climate Innovation Center. Interview.
[44] There are currently four procedures required to start a business in Morocco: 1) Obtain a "Certificat Négatif" to register
the company name; 2) Pay stamp duty; 3) Register for patent tax, the Tribunal of Commerce, social security and taxation;
and 4) Make a company stamp. It takes 9.5 days, and costs 7.9 percent of income per capita for both men and women.
[45] International Youth Foundation Interview.
[46] Adalia Interview.
[47] Enabling Entrepreneurial Ecosystems: Insights from Ecology to Inform Effective Entrepreneurship Policy, Kauffman
Foundation, 2015.
[48] Espace Bidaya Interview.
[50] Maroc Numeric Fund Interview.
[51] Pew Charitable Trusts, 2015.
[52] Rawa Services Interview.
[53] Renewable Energy Auctions, International Renewable Energy Agency, 2016.
[54] New Work Lab Interview.
[55] http://www.green-cape.co.za/
[56] http://www.mise.gov.it/images/stories/documenti/italian_startup_act_annual_report_to_parliament_2016.pdf

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ANNEXES
Annex I: Report methodology
The diagnostic was developed based on the Babson Several diagnostics have already been undertaken by the
Entrepreneurship Ecosystem model, which captures the World Bank in Bangladesh, Serbia, Sri Lanka, and Suriname.
most widely held understanding of entrepreneurial Although some have focused specifically on the digital
ecosystems, including what factors they consist of, and how sector, the Morocco diagnostic is the first climate-focused
they work. (See figure 1a) iteration.
There are a variety of external and internal factors at each

Figure 1a. Babson Entrepreneurship Ecosystem Model stage of enterprise development that affect the livelihood of
a business. This can include the culture and attitudes to
entrepreneurship that one is exposed to, and the policies that
can help, hinder, or even halt activity. These factors
influence everything from the concept to the start-up stage,
and from there to growth, optimization, and eventually
innovation.
The Babson model consists of six domains, each with several

sub-components (see figure 2a).It captures the most
important dimensions of an ecosystem that are (initially)
interdependent of each other. These six domains are meant
Source: Authors to determine the overall entrepreneurial strengths,
weaknesses, and opportunities that ultimately drive
entrepreneurship in any city or country.
77 Morocco CEED • Annexes

Figure 2a: Six Pillars of Babson’s Ecosystem Framework, applied to an innovation and entrepreneurship context
Policy Financial Capital Markets Culture Human Capital Support
 R&D environment  Debt finance  Key product  Business activity  State of youth  Support to
& institutions  Foreign direct markets and  Startup activity employment entrepreneurs and
 Regulation investments their demand  Risk tolerance  Skilled workforce startups
 Taxation  Equity for innovation  Confidence  Management  Business networks
 Venture-friendly Investments  State of  Role models quality  Diaspora
legislation and Internet Access  Availability of  Incubators/
processes  Role of large management accelerators
 Foreign business companies as training  Cluster
friendliness buyers of local initiatives/supply
 Industry policy, products chain development
support and  Overall  Business
incentives financial development services
inclusion
Source: Authors
By conducting a comprehensive and holistic diagnostic that Secondary Data Collection

uses an advanced analytical approach to identify existing
gaps and challenges in the ecosystem, one can gauge the The report is based on the collection and analysis of four
need for future support programs that can be designed to sources of data:
address identifiable gaps. These interventions, in turn, could
be expected to move the ecosystem toward greater synergy Two primary sources: 1) 44 semi-structured interviews
among the domains, leading to non-linear, catalytic effects. conducted from August-October 2016 throughout
Morocco, 2) a targeted national online survey of 334
ecosystem actors in Morocco; and
Two secondary sources: 1) 42 national-level quantitative
indicators, 2) a review of more than 40 existing reports on
entrepreneurship and clean technology.

Morocco Jordan South Africa Egypt France
Country of Analysis Comparable country Comparable country Regional comparator Global comparator
along the units of: along the units of:
GDP: $107b GDP: $35.8b GDP: $287b GDP: $2.3t
Population: 34.4m Population 6.74m GDP: $313b Population: 91.5m Population: 66.5m
Governance: Constitutional Governance: Population: 54.8m Governance: Republic Governance: Republic
Monarchy Constitutional Governance: Republic Unemployment 13.2% Unemployment 9.9%
Unemployment: 10.2% Monarchy Unemployment 25.1%
Unemployment: 11.1%
Figure 3a. Morocco CEED Benchmarking Rationalization Source: World Bank, World Development Indicators
For each data collection method, the team designed Indicator Assessment
complementary analytical instruments to capture data along
each of the six ecosystem domains and their sub- The indicator assessment started from a list of 109 potential
components. Specifically, the team performed extensive indicators. These were subsequently distilled by relevance to
background research of relevant publications about climate the objectives of the diagnostic. Several countries were
sectors, entrepreneurship, access to finance, innovation and included in the analysis to benchmark the data and compare
more. The team also selected suitable country-level Morocco to countries relative in composition (see figure 3a
indicators, and developed an interview guide for each below). Often serving as regional benchmarks or places of
stakeholder group in the ecosystem. Finally, the team comparison for Moroccan policymakers and ecosystem
designed and distributed a survey to a defined population of actors, Egypt and Jordan were included. As one of the
stakeholders. By using different data sources to assess the strongest economies on the African continent, South Africa
same ecosystem dimensions and reflecting sources against was also incorporated. Finally, France was included largely
each other, the team triangulated the data to gain higher because of the historical connection that continues between
validity and consistency for the findings. the countries — socially, economically, and linguistically.

The preliminary indicator selection was further refined
following the in-country data collection. Data was Figure 4a. Interviews by Stakeholder Group
ultimately collected through desk research on 43 indicators. Segment #
Interviews
Entrepreneurs and SMEs 14
Qualitative In-country Data Collection Ecosystem enablers (incubators, accelerators,
10
mentors, co-working spaces, etc.)
Government officials 2
Semi-structured interviews
Financial representatives 4
The qualitative in-country data collection component Corporate Stakeholders 3
represented the basis for all report findings. It encompassed a Business Associations and Chambers 8
series of semi-structured interviews with stakeholders from Academia 3
multiple sectors. An initial informant list was established
Total 44
based on desk research, and local and in-country contacts. It
was reviewed and updated by several strong ecosystem
influencers in Morocco. Online entrepreneurial attitudes and experts
survey
The focus was on meeting with a wide array of ecosystem The team conducted a survey of ecosystem actors in
actors and entrepreneurs who were all uniquely positioned Morocco during September 2016. The survey was intended
to speak to one or more of the six ecosystem domains. This to further corroborate and quantify the findings from the
included, but was not limited to 1) entrepreneurs and SMEs; qualitative stage of analysis.
2) managers of ecosystem enabler organizations; 3)
government officials and policymakers; 4) financiers; 5) Defining a population and distribution
NGOs; 6) academic institutions and scholars; as well as 7) There are no known official statistics regarding the exact
leaders of business associations and chambers. Figure 4a number of entrepreneurs in Morocco, including green
shows the breakdown of interviews and group consultations entrepreneurs. However, in an effort to ensure accuracy of
by segment. results, the team did a wide review of existing literature on
related topics in the region to find an estimation of the
number of active entrepreneurs in Morocco.

Figure 5a. Defined Population of Morocco’s selection approach brought with it a potential bias in the
Entrepreneurship Ecosystem results. However, based on the (albeit limited) available data
to estimate the size of the entrepreneurial community in
Name Estimate Size of Network
Morocco, and the number of responses received, it can be
7ay 30 assumed that the results are representative of the population.
AMIC/LixCap 16
Amina Investment Network 75
Calculating confidence
Cluster Solaire / MCIC 80
From the survey of 603 ecosystem actors in Morocco —
Enactus Maroc 84 with a margin of error of plus or minus five percentage
Espace Bidaya 13 points at 95 percent level of confidence — a sample size of
Ministére des MRE 100 219 actors was required. With a large sample size of 334, it
MOWGLI Morocco 168
can be inferred that the data collected is representative.
However, considering the green-focus of the survey, it
Réseau Entreprendre Maroc 52
cannot be claimed that the findings are representative of all
Secteur 21 15 entrepreneurs in Morocco. Furthermore, as the survey was
Total: 603 taken by self-selection, the team acknowledges the potential
bias associated with the data.
Startup Morocco, one of the biggest and most influential

stakeholders in the ecosystem, recently stated that Morocco Defining the sample
has less than 200 start-ups. This is the only known source to The survey was designed to capture the “ecosystem
help validate the sample. Based on this information the only identity” of each respondent by having them self-select the
way to determine any sort of sample was to distribute the classification that best described their current situation (See
survey through various known green and entrepreneurship- Figure 6a for list of actors). Since the survey ultimately
related networks in the country. This ultimately served to aimed to gather insights about green entrepreneurial
estimate the population size: 603 (see figure 5a for details), attitudes and experiences in Morocco, the term
for which the team received 334 responses. This self- “entrepreneur” was broadly defined. Four classifications
were used to encompass entrepreneurship and innovation-
related activities from the ideation stage to market-ready Morocco and many do not self-identify as green
established businesses. entrepreneurs, of the total entrepreneurs surveyed, an
estimated 22 percent would consider themselves to be green
The classifications include: 1) Entrepreneur; 2) Researcher; 3) entrepreneurs.This number is based on Question 29
Startup; and 4) Existing company creating or adapting a (optional) of the survey, which received 45 responses. It
climate technology or business model. From this group of asked respondents to indicate: “What clean technology do
stakeholders, 205 responses were received. Additionally, as you develop and/or commercialize? (if relevant).”
the green/climate technology field is still emergent in
Figure 6a. Ecosystem Actors Survey and Response Rate

Response
Ecosystem Actors Rate
Entrepreneur 118
Researcher (e.g. R&D person in a university) 31
Startup 38
Existing Company creating or adapting a climate technology or business
18
model
Total number of entrepreneurs 205
Government Official 7
Association 28
Incubator/Accelerator 14
Investor/Banker 3
Journalist 2
Private Sector 29
Other 46
Total Survey Responses 334

Annex II: Why Climate Innovation?
The need to discover innovative solutions for mitigating the recognition from commercial sources about the
effects of climate change is at the forefront of almost every importance of “social impact investing.” Multinationals
nation’s policies. Morocco, like many other countries has continue to make climate change a centerpiece of their
invested in renewable energy, and begun to develop more strategies, and have emphasized the global need to ‘go
sustainably-driven policies. However, Morocco has yet to cleaner.’ As a result of these developments, there is now
realize the greater industrial competitiveness and economic a wide-range of financing sources for climate-related
growth that can accompany investment in climate sectors. This includes public sources, such as the Green
innovation. A pivotal part of this potential growth is Climate Fund, which is scaling to its target of US$100
through the promotion of climate entrepreneurship, which billion per year, and the World Bank, which will
can lead to greater economic development in emerging increase its share of overall investments in climate to 28
markets. percent by 2020.
 Large sector growth rates: Political pressure,  Transformation favors new entrants: Climate sectors
technological advances, and falling prices lead to high have traits that allow new entrants to gain market share
expected growth rates for climate-related sectors. This is against incumbents. These traits include the expansion
particularly true for emerging economies and of markets, technological advancement and disruption,
developing countries, which must make large and immense growth in demand (particularly in
infrastructure investments (for example, in power sector emerging/developing countries), which goes beyond
supply and transmission). On the adaptation side, the supply capacity of existing firm capability. In general,
increase in climate change will also force countries to whereas developed country firms hold dominant
invest in sectors such as clean water supply and climate- incumbency positions in most sectors, firms from
smart agriculture. developing countries are the new entrants in climate
sectors.
 Availability of Financing: There has been increase in
national government policy support, and a growing

 Local knowledge needed for entrance into local markets. Firms are innovating rather than relying on the
markets: Climate technology requirements for often imperfect, technology-transfer model. While some
developing countries differ from developed countries components of clean products have been commoditized
due to local market, social, and natural circumstances. (for example, photovoltaic cells), most require
Greater participation by developing country firms to knowledge of local market conditions. This gives local
innovate relevant technologies and related business firms a distinct advantage vis-à-vis competition from
models can develop solutions appropriate for local foreign firms.

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Authors: Kalyah Ford, Ayoub Derdabi, Rosa Lin, and

Design and Graphics: Rosa Lin

26 Morocco’s Climate Challenge and

Case studies & Figures Figure 6. Top 5 Sources of Mentorship

In recent years, investment in the various facets of

11 Morocco CEED • Executive Summary

The following are a range of the

12 Morocco CEED • Executive Summary

13 Morocco CEED • Executive Summary

14 Morocco CEED • Executive Summary

15 Morocco CEED • Executive Summary

16 Morocco CEED • Executive Summary

17 Morocco CEED • Executive Summary

21 Morocco CEED • Introduction

I. A context section based on secondary data analysis seeks

II. A findings section based entirely on primary data — both

III. A recommendations section based on the findings and

23 Morocco CEED • Introduction

24 Morocco CEED • Introduction

Photo: Arne Hoel / World Bank

26 Morocco CEED • Introduction

Strengthening targeted support of the country’s climate

Box 1.1 Entrepreneurship Macro-data Snapshot

29 Morocco CEED • Introduction

Since the 2014 Global Entrepreneurship Summit in Morocco,

There are a variety of reasons for the existence of these structural

31 Morocco CEED • Main findings

32 Morocco CEED • Main findings

33 Morocco CEED • Main findings

35 Morocco CEED • Main findings

36 Morocco CEED • Main findings

Library at Mohammed V University at Agdal, Rabat. Photo: Arne Hoel/World Bank

37 Morocco CEED • Main findings

39 Morocco CEED • Main findings

Funding sources, amount Key value proposition

40 Morocco CEED • Main findings

“Women need a dedicated program to empower them.”

The current situation for women entrepreneurs in Morocco

41 Morocco CEED • Main findings

42 Morocco CEED • Main findings

Box 1.3 Women’s Support Programs around the World

43 Morocco CEED • Main findings

44 Morocco CEED • Main findings

47 Morocco CEED • Main findings

48 Morocco CEED • Main findings

49 Morocco CEED • Main findings

50 Morocco CEED • Main findings

51 Morocco CEED • Main findings

52 Morocco CEED • Main findings

53 Morocco CEED • Main findings

54 Morocco CEED • Main findings

Number of staff Current and target customer market

55 Morocco CEED • Main findings

Seventy-seven percent of entrepreneurs

57 Morocco CEED • Main findings

58 Morocco CEED • Main findings

British Seed Enterprise Investment Scheme (SEIS)