MC II Concrete: An equity investment to support the construction sector in Morocco

MC II Concrete is the holding company whose underlying company is TGCC. The General Construction Company of Casablanca ("TGCC”) is one of Morocco’s leaders in industrial, public and building works. The group has built several reference facilities in Morocco, such as the extension of the Mohamed V Airport, the Casablanca Train Station, and a number of hotels and shopping centers in Tangiers and Casablanca.

This EUR 10m equity investment is part of a total investment of EUR 45m, alongside the manager Mediterrania Capital Partners via its MC III fund, DEG, PROPARCO’s German counterpart, and South Suez. 

The objective is to support the company towards a new stage in growth in Morocco, but also in Sub-Saharan Africa, where it already has two subsidiaries in Gabon and Côte d'Ivoire.

The technical assistance provided to TGCC aims to help the company to streamline its governance, in particular its internal audit function.

This project will support:

• Employment and training: Proparco’s investment will allow TGCC to implement an ambitious development plan which provides for the recruitment of 4,500 additional employees over the next 5 years, and will support indirect employment with its suppliers (+2,300 indirect jobs expected over the next 5 years). TGCC will double its training budget for non-executives in 2017.
• The emergence of regional economic actors in Africa, by participating in the development of the Gabonese and Ivorian subsidiaries.

 

As the construction sector is the lifeblood of Morocco’s growth, this investment also addresses structural challenges for the country, such as access to transport and housing. TGCC also operates in the hotel and hospital sectors.

Finally, Proparco’s Technical Assistance, which targets the company’s governance, will strengthen these internal processes and thereby support its long-term strength.