Business News North Africa January 2024
Business
EGYPT – Shipping companies avoid the Suez Canal in fear of Houthi attacks
The recurring attacks on commercial vessels crossing the Red Sea by Yemen’s Houthi group have pushed several shipping companies to divert ships away from Egypt’s Suez Canal. The companies that announced this decision include the United Kingdom’s BP, Taiwan’s Evergreen, Germany’s Hapag Lloyd, South Korea’s HMM, France’s CMA-CGM, Denmark’s Maersk, and Switzerland’s MSC. This disruption in supply chains is expected to have an impact on global maritime transportation costs, as well as the revenue of the Suez Canal.
Dec. 19, 2023
EGYPT – Egypt’s central bank eliminates charges on digital transfers in EGP
The Central Bank of Egypt has issued decrees to exempt bank customers from all fees and commissions related to bank transfers in Egyptian Pound executed via digital channels, namely internet banking and mobile banking applications.
Dec. 31, 2023
MOROCCO – Pratt & Whitney to build a plane engine factory in Morocco
American plane engine manufacturer Pratt & Whitney has signed an agreement to build a factory near Casablanca. The company will allocate a budget of MAD 715 mn (EUR 65.1 mn) for the project. It is set to become operational at full capacity by 2030 and create between 200 and 250 direct jobs.
Dec. 8, 2023
MOROCCO – Dutch company Agro Care launches a greenhouse tomato production project in Agadir
Dutch horticulture company Agro Care has launched a greenhouse project for the production of tomatoes in Agadir, southern Morocco. The project extends over an area of 100 hectares. The company aims to increase the cultivated area to 200 hectares in the near future.
Dec. 8, 2023
MOROCCO – Ryanair to launch 24 new air routes with Morocco in summer 2024
Low-cost airline Ryanair has signed an agreement with Morocco’s tourism office to launch 35 new air routes in the summer of 2024, including 24 international routes with Germany, Spain, France, Italy, the Netherlands, Portugal, Sweden, and the United Kingdom, and 11 domestic routes within Morocco. The airline will also open a new hub for two of its airplanes in Tangier, increasing the total number of its Morocco-based airplanes to 14.
Dec. 12, 2023
MOROCCO – French cable manufacturer Nexans invests EUR 100 mn to build its 3rd Moroccan factory
French cable manufacturer Nexans has signed an agreement to build its third factory in Morocco with a global investment of EUR 100 mn. The production unit will specialize in manufacturing medium-voltage cables and is set to become operational by 2026. The project is set to generate 200 new direct jobs.
Dec. 14, 2023
TUNISIA – German company PSZ Electronic to launch its fourth Tunisian factory in January 2024
German company PSZ Electronic is set to open its fourth factory in Tunisia in January 2024. The production unit will specialize in manufacturing electric and telephone wires. Located in Bizerte, northern Tunisia, the project spans an area of 20,000 square meters and will allow the creation of 3,000 new jobs over the next three years.
Dec. 13, 2023
ALGERIA – Italian-Algerian joint venture to produce automotive components in Algeria
Italian automotive parts manufacturer SIGIT Group has signed an agreement with the Algeria Chemical Specialties Holding to launch a joint venture that specializes in the production of plastic- and rubber-made components for the automotive industry.
Dec. 10, 2023
ALGERIA – Fiat inaugurates its first factory in Algeria
Multinational car manufacturer Stellantis has inaugurated its first Fiat factory in Algeria. Located in Oran, northwestern Algeria, the assembly unit will have an initial production capacity of 60,000 vehicles per year. The factory will initially produce the Fiat 500 car model, before increasing its production to three different models by 2026 and to four by 2029. The project created 300 new jobs at its launch and is set to create 300 more during 2024.
Dec. 11, 2023
Politics
EGYPT – Egyptian President Abdel Fatah al-Sisi wins the 2024 presidential elections
Egyptian President Abdel Fatah al-Sisi has been reelected for a new six-year presidency term after winning the 2024 presidential elections. According to the National Elections Authority, al-Sisi received 89.6% of total valid votes. Candidate Hazem Omar came second with 4.5% of the votes, followed by Farid Zahra (4.0%) and Abdul-Sanad Yamama (1.9%). The number of voters reached over 44.7 million, with a turnout rate of 66.8%, the highest in the history of Egypt.
Dec. 18, 2023
EGYPT – Egypt’s membership in BRICS+ goes into effect
Egypt’s membership in the BRICS organization, henceforth called BRICS+, went into effect as of January 2024. Egypt was approved as a new member back in August 2023, along with five other countries: Argentina, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates.
Jan. 1, 2024
MOROCCO – Morocco and the UAE sign 12 cooperation agreements
Morocco and the UAE have signed 12 agreements during the state visit of King Mohammed VI to Abu Dhabi. The agreements cover a series of sectors, including infrastructure, high-speed train projects, phosphates, water, energy, data centers, tourism, real estate, financial markets, seaports, and gas pipelines.
Dec. 4, 2023
TUNISIA – Participation rate in the first round of Tunisia’s local elections reach 11.6%
Tunisia’s Higher Independent Authority for Elections has announced that the participation rate in the first round of the 2024 local elections has reached 11.66%, with a total of around 1.07 million participants. Around 1,348 candidates were elected to local councils from the first round. Meanwhile, 1,562 candidates will have to go through a second round of voting, set to take place before the end of January 2024.
Dec. 28, 2023
ALGERIA – Algerian public sector employees to receive salary raises from January 2024
The Algerian government has announced an increase in the salaries of all public servants, starting January 2024. The decision concerns around 2.8 million employees. The government has also announced it will review sectoral collective conventions to push for an increase in salaries in the private sector as well.
Dec. 12, 2023
Economy
EGYPT – Annual inflation rate in Egypt increases to 34.6% in November 2023
Egypt’s annual inflation rate dropped to 34.6% in November 2023, down from 35.8% in the previous month. The decline in inflation was driven by the decrease in the prices of food products, notably vegetables (4.7%), fruits (3.5%), and meat and poultry (1.5%). The prices of transportation services also declined by 2.3% over the month.
Dec. 10, 2023
MOROCCO – Morocco’s annual inflation rate declines to 3.6% in November 2023
Morocco’s annual inflation rate has declined for the second month in a row, dropping from 4.3% in October 2023 to 3.6% in November. The figure is attributed to a 7.6% increase in the prices of food products and a 0.7% increase for non-food products. The annual variation in the prices of non-food products ranges between -2.4% for transportation and +4.8% for restaurants and hotels.
Dec. 20, 2023
MOROCCO – Moroccan economy records a 2.8% annual growth rate in Q3-2023
The Moroccan economy recorded a 2.8% annual growth in the third quarter of 2023, up from 1.7% in the same period of 2022 and from 2.3% in the second quarter of 2023. The growth is mainly attributed to the primary sector, which recorded an 8.9% increase in added value in Q3-2023, compared to a 13.8% decline in Q3-2022. Meanwhile, the secondary sector recorded a 0.5% increase, up from -1.1% in Q3-2022, and the tertiary sector a 3.1% decline, up from -5.9%.
Dec. 29, 2023
TUNISIA – Tunisia’s annual inflation rate decreases to 8.3% in November 2023
The annual inflation rate in Tunisia has declined to 8.3% in November 2023, compared to 8.6% in October. Food products remain the most affected by inflation, with their prices increasing by 11.9% between November 2022 and 2023, notably coffee (35.0%), cooking oil (29.0%), sheep meat (28.0%), beef meat (17.1%), and fresh fruits (14.1%).
Dec. 12, 2023
ALGERIA – Annual inflation rate in Algeria increases to 8.4% in November 2023
Algeria’s annual inflation rate has increased from 8.2% in October 2023 to 8.4% in November. Food products are still the most affected by inflation, with their prices increasing by 11.0% between November 2022 and 2023, followed by health and hygiene products (8.6%), household items (6.8%), and clothing items (6.2%). Meanwhile, transportation and communication services are the least affected (0.6%).
Dec. 25, 2023
Key Economic Indicators
