Actis failure adds to project delays to pose stern questions of Morocco’s ability to deliver services

The refusal by a number of the local authorities of UK private equity investor Actis’ planned takeover of French operator Veolia Environnement’s electricity, water and sanitation concessions in Rabat-Salé, Tangier and Tetouan has highlighted problems of mounting investment projects in Morocco that run counter to the kingdom’s reputation as the region’s most attractive investment destination. Such is the perception of the kingdom’s strategic position that Actis says it remains interested in making Moroccan investments, either by eventually reviving the Veolia deal (if local authorities are unable to make their counterbid for the assets work) or looking for another project that might help to create a ‘hub business’ based around Morocco.