In order to assist startups in this difficult time, the Caisse Centrale de Garantie (CCG), which manages the Innov Invest fund, has set up exceptional additional financing for the benefit of startups.
“ It is a good initiative. This will allow these startups to cover some costs and also accelerate innovation. Startups are in a critical situation today like any other type of business. Startups are companies that are in the start-up phase, and in the current context, it’s really complicated, “says Zineb Rharrasse, Co-Founder and CEO of StartUp Morocco.
Here Is What You Need To Know
- This exceptional device by CCG should notably benefit startups that have received financing under the Innov Invest fund and are unable to obtain bank loans.
- It should be noted that startups eligible for this funding must be active and have order books, materialized by contracts concluded.
- It should be noted further that this funding is in the form of an honor loan that can be distributed by support structures labeled category 2 and intended to cover, within the limit of 500,000 DH ($53k), four months of current expenses that may be justified. by the startup concerned, and will be repayable over a period of 5 years.
- It should also be noted that the grant of these loans cannot exceed December 31, 2020.
“Startups are already a very fragile fabric in Morocco due to lack of funding, and the pandemic has come to reinforce this fragility. Unfortunately, we are going to register a lot of startup bankruptcies as a result of this situation. So this measure by the CCG remains important, but there are still a lot of measures to put in place today to save the situation “, concludes Zineb Rharrasse.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer