The Moroccan producer and distributor of bedding products, Dolidol, announced plans to acquire Nigerian mattress producer Mouka.
The acquisition, supported by a €20 million loan from World Bank (WB) Group institution, the International Finance Corporation (IFC), and Proparco, will see Dolidol expand their operations in Nigeria through an existing key player in the Nigerian mattress market.
Dolidol received a funding package comprising €13.5 million from ICF and €6.5 million from Proparco, a French development institute.
Using Dolidol’s expertise in manufacturing and Mouka’s market route, the group is banking on consolidating its presence in West Africa.
Employing over 1000 people in Morocco and the Ivory Coast, the expansion is forecasted to create an additional 200 jobs directly and 600 jobs indirectly in Morocco and Nigeria.
Already a household name in the mattress market in Morocco, Dolidol started expanding in Francophone Africa in 2018 after becoming part of the Development Partners International (DPI), one of Africa’s largest private equity funds.
As of 2021, Dolidal is present in five African countries, including the Ivory Coast, where it has the largest market share.
Dolidol is not the first or alone in eyeing African markets. For over a decade, Moroccan banks cultivated a strong presence in African marketsthrough acquisitions.
Morocco’s largest bank, Attijariwafa bank, currently runs operations in 15 African countries through multiple subsidies. Morocco’s second-largest bank, BCP banking group, holds a large portfolio of subsidiaries across 18 African countries.
The expansion strategy is largely supported by the creation of the world’s largest Free Trade Area, AfCFTA covering 54 African countries.
Moroccan companies’ expansion strategy may be linguistically constrained, as most Moroccan companies and banks seem to only target Francophone Africa.