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Business News North Africa May 2024

Business

EGYPT – Turkish company DNM-Eroglu Group to open a jeans factory in Egypt

Turkish company DNM-Eroglu Group has signed an agreement to build a jeans factory in the Qantara West Industrial Area, northeastern Egypt. The Turkish company will invest USD 40.0 mn in the project, which is set to produce 7.2 million units per year, including 70% for export. The factory, set to become operational in early 2025, will cover an area of 62,000 square meters and generate around 2,750 job opportunities.

Apr. 8, 2024

EGYPT – Chinese company Wu’an Xin Feng to build an iron factory in Egypt

Chinese iron producer Wu’an Xin Feng has signed an agreement with the Suez Canal Economic Zone to establish a factory in Egypt. The project involves a total investment of USD 297 mn and will specialize in the production of hot-rolled iron coils. The factory will cover a total area of 750,000 square meters and aims to export 70% of its production.

Apr. 22, 2024

MOROCCO – Chinese e-commerce platform Temu launches in Morocco

Chinese e-commerce platform Temu has launched its services in Morocco. The platform offers products from 30 different categories and allows customers to get in direct contact with manufacturers, without going through sellers.

Apr. 2, 2024

MOROCCO – Turkish company Arçelik acquires Whilpool’s subsidiary in Morocco

Turkish household appliances manufacturer Arçelik has acquired Whirlpool’s subsidiary in Morocco. Through this acquisition, Arçelik will commercialize several household appliance brands in the Moroccan market, notably Whirlpool, Ariston, Indesit, Hotpoint, Hotpoint-Ariston, Bauknecht, and Ignis.

Apr. 4, 2024

MOROCCO – Sweden’s Stena Line acquires a 49% stake in shipping company Africa Morocco Link

Swedish shipping company Stena Line has acquired a 49% stake in Moroccan company Africa Morocco Link from the Greek Attica Holdings. The deal between Stena Line and Attica Holdings also includes the purchase of two ferries, Morocco Star and Highspeed 3. The deal is valued at around EUR 49.0 mn. The remaining 51% stake in the Moroccan shipping company belongs to the Bank of Africa.

Apr. 8, 2024

MOROCCO – Emirati company Alucop inaugurates an aluminum and copper foundry in Morocco

Emirati industrial company Alucop has inaugurated an aluminum and copper foundry in Berrechid, near Casablanca. The project had a budget of MAD 95.0 mn (EUR 8.75 mn) and will generate 110 new jobs. The foundry has several production units, allowing a production capacity of over 60,000 tonnes of copper and aluminum in various forms.

Apr. 30, 2024

TUNISIA – American company Visteon opens a factory in northern Tunisia

American automotive equipment manufacturer Visteon has inaugurated a production unit in Ben Arous, northern Tunisia. The factory will manufacture electronic components for the automotive industry with a production capacity of 20,000 units per day. The project required an investment of USD 65.0 mn and is expected to generate 400 new jobs at launch and 1,000 jobs in total by 2028.

Apr. 12, 2024

ALGERIA – Algerian-American factory to produce components for high-voltage electric substations

Algerian energy company Sonelgaz and its American counterpart General Electric have signed an agreement to expand the activity of their joint venture General Electric Algeria Turbines. According to the agreement, the joint venture will begin producing components for high-voltage electric substations. Launched in 2014, the joint venture was specialized in manufacturing components for gas and steam turbines.

Apr. 17, 2024

ALGERIA – Qatari company Baladna to lead a USD 3.5 bn dairy project in Algeria

Qatari agroindustry company Baladna has signed an agreement with the Algerian Ministry of Agriculture to launch “the world’s largest integrated dairy farming and production project” in the country. The project has a global investment budget of USD 3.5 bn and will be co-owned at a 51/49 split between Baladna (majority owner) and the Algerian state. The project, which will span a total area of 117,000 hectares and generate 5,000 jobs, includes three large farms for raising cows and producing meat and milk, as well as a factory for the production of powdered milk.

Apr. 24, 2024

ALGERIA – Algerian-Turkish company Cirta Automotive launches a factory in northeastern Algeria

A new Algerian-Turkish factory, Cirta Automotive, has been inaugurated near Constantine, in northeastern Algeria. The factory will specialize in the production of rubber components for the automotive industry. It will have a production capacity of 2.5 million units per year and it is set to generate 180 new jobs.

Apr. 24, 2024

Politics

EGYPT – Egyptian President Abdel Fatah El-Sisi takes the oath for his 2024-2030 presidential term

Egyptian President Abdel Fatah El-Sisi has taken the oath for his third presidential term, spanning from 2024 to 2030. In his inauguration speech, President El-Sisi promised to achieve seven priorities during this term, namely maintaining national security, maximizing economic capabilities, increasing agricultural area, implementing comprehensive institutional reform, improving the quality of education and health services, and completing the country’s plan for urban development.

Apr. 2, 2024

MOROCCO – France authorizes public investments in Moroccan projects in Western Sahara

France has authorized its public financial institutions to finance Moroccan projects in Western Sahara. The announcement was made by the French minister for trade during an official visit to Morocco. The decision was considered by observers as a de facto recognition by the French government of Morocco’s sovereignty over the Western Sahara territory.

Apr. 4, 2024

TUNISIA – Tunisia, Algeria and Libya agree to boost trilateral cooperation through joint working groups

Tunisia has hosted a trilateral consultative meeting between Tunisia President Kais Saied, Algerian President Abdelmadjid Tebboune, and President of the Presidential Council of Libya Mohamed Younes al-Manfi. The three leaders agreed to create joint working groups in order to protect their common borders from threats, facilitate the movement of people and goods, and establish joint economic zones between the three countries.

Apr. 22, 2024

ALGERIA – Algeria and The Bahamas establish diplomatic relations

Algeria and The Bahamas have decided to establish bilateral diplomatic relations. The two countries signed the agreement through their ambassadors to the UN in New York. According to a joint statement, the two countries pledged to “develop friendly relations on the basis of peaceful coexistence and international law.”

May 2, 2024

Economy

EGYPT – Egypt increases the private sector’s minimum wage to EUR 117 per month

Egyptian authorities have decided to increase the country’s minimum monthly gross wage in the private sector from EGP 3,500 (EUR 68.2) to EGP 6,000 (EUR 117). This is the fourth increase in the national minimum wage since January 2023 when it stood at EGP 2,700 (EUR 52.6). Micro-businesses with less than 10 employees, however, are exempt from this decision.

Apr. 7, 2024

EGYPT – Egypt’s annual inflation rate decreases to 33.3% in March 2024

Egypt’s annual inflation rate has decreased from 35.7% in February 2024 to 33.3% in March. The decline is mainly attributed to a drop in the inflation rate of fruits and vegetables, which went from 62.7% in February to 41.1% in March.

Apr. 8, 2024

EGYPT – Daily cash withdrawal limit in Egyptian banks increases to over EUR 4,800

The Central Bank of Egypt has issued new instructions to increase the daily cash withdrawal limit for individuals and companies from EGP 150,000 (EUR 2,926) to EGP 250,000 (EUR 4,879). The withdrawal limit from ATMs has also been increased from EGP 20,000 (EUR 390) to EGP 30,000 (EUR 585). The decision aims to improve liquidity in the country.

Apr. 15, 2024

MOROCCO – Annual inflation rate in Morocco rises to 0.9% in March 2024

Morocco’s annual inflation rate has increased from 0.3% in February 2024 to 0.9% in March. The rise is attributed to a 0.9% increase in the prices of food products and a 1.1% increase for non-food products. For the latter, price variations over the year have ranged from -1.1% for health services to +3.8% for restaurants and hotels.

Apr. 22, 2024

MOROCCO – Morocco to issue a 10% increase in the private sector’s minimum wage by 2026

The Moroccan government has decided to increase the monthly minimum wage in the private sector by 10%, from MAD 3,111 (EUR 286) to MAD 3,422 (EUR 315). The raise will be acted over two stages: a first increase of 5% in January 2025 and a second 5% increase in January 2026. Public sector employees, meanwhile, will receive a MAD 1,000 (EUR 92.2) increase in wages: MAD 500 (EUR 46.1) in July 2024 and MAD 500 in July 2025.

Apr. 29, 2024

MOROCCO – Morocco’s unemployment rate rises to 13.7% in Q1-2024

The unemployment rate in Morocco has increased from 13.0% in the last quarter of 2023 to 13.7% in the first quarter of 2024. The figure is higher in urban areas (17.6%) than in rural ones (6.8%). Some of the social categories most affected by unemployment are youth aged 15 to 24 (35.9%), university graduates (20.3%), and women (20.1%).

May 3, 2024

TUNISIA – Tunisia maintains a 7.5% annual inflation rate in March 2024

The annual inflation rate in Tunisia has remained stable at 7.5% in March 2024. Food products are the most affected by inflation, having their prices increase by 10.2% between March 2023 and 2024, notably coffee (35.0%), cooking oils (22.2%), lamb meat (22.0%), spices and condiments (18.0%), and fresh vegetables (17.7%). Meanwhile, eggs are the only food products that witnessed a decrease in prices over the year, at -0.2%.

Apr. 5, 2024

Key Economic Indicators

NA May 24