Newsletter North Africa August 2019

Business

MOROCCO – Morocco Attends African Union Summit, Emphasizing its Stance on Polisario
The Minister for Foreign Affairs, Nasser Bourita attended the African Union summit in Niamey on July 7, for the launch of the operational phase of the African Continental Free Trade Area (AfCFTA). Bourita emphasized that Morocco’s signature of the AfCFTA agreement was separate from its stance on the self-proclaimed Sahrawi Democratic Republic (SADR): Morocco’s signature “cannot be interpreted as an acknowledgment of a situation, a fact, or an entity it does not recognize […],” he stated. Morocco has rejected any mediation by the African Union on the issue of Western Sahara.
July 7, 2019

TUNISIA – US Secretary Pompeo Meets With Tunisian Foreign Minister Khemaies
US Secretary Michael Pompeo met with Tunisian Foreign Minister Khemaies Jhinaoui in Washington, D.C. on July 16 as part of a US-Tunisia Strategic Dialogue. Pompeo and Khemaies discussed joint counter-terrorism objectives. Pompeo congratulated Tunisia’s election to the UN Security Council. Pompeo also expressed his support for Tunisia’s efforts to increase bilateral trade. At a meeting on June 14, Pompeo and Khemaies had discussed increasing opportunities for US investment in Tunisia, focusing on three sectors: renewable energy, manufacturing, and engineering and construction.
July 16, 2019

TUNISIA – ISIS Releases Video Calling for More Terrorist Attacks on Tunisia
The “media desk of the Islamic State (ISIS) in Tunisia” released a video on social media on July 16 showing masked and armed men calling for more terrorist attacks to target Tunisia. The video’s release comes at a time of heightened security concerns in the country. Two suicide bombing took place in Tunis on June 27. The attacks, claimed by ISIS and targeting Tunisian security forces, killed one policeman and injured several civilians. On July 3, the presumed mastermind of the attacks, Aymen Smiri, blew himself up in Tunis following a police chase.
July 17, 2019

TUNISIA – Uncertainty Around the Tunisian Election Date
Mohamed Ennaceur, the Speaker of the Tunisian Parliament, was sworn in as interim president of Tunisia following the death of 92 year old President Essebi on July 25. Under the constitution, the interim president must call an election within 45 to 90 days of appointment. Before Essebi’s death, the Tunisian presidential election was due to be held on November 17. It remains to be seen when and how the presidential election will unfold.
July 25, 2019

ALGERIA – Bensalah’s Interim Term Ends, No Presidential Election in Sight
On July 19, thousands protested in cities across Algeria, seeking the resignation of interim president Abdelkader Bensalah. Bensalah’s 90 day interim term officially expired on July 9. The presidential election was scheduled for July 4 but was cancelled because no candidates were presented. No date has been set for a future election. The protests continue despite Algerian lawmakers electing an opposition figure, Slimane Chenine, as new Chairman of Parliament on July 10.
July 19, 2019

Economy

MOROCCO – Morocco’s Public Debt Drops to USD 34.12 bn in March 2019
According to figures released by the Moroccan Ministry of Economy and Finance, Morocco’s external public debt in March 2019 was USD 34.12 bn, or 29.5% of Gross Domestic Product. The figures show a drop of 1.4% compared to March 2018. Nearly half of Morocco’s debt, 48.6%, comes from international institutions including the World Bank and the International Monetary Fund. Bilateral lending agreements make up 28% (of which 18.5% from European countries). 23.4% of the debt comes from banks.
July 1, 2019

MOROCCO – Morocco’s Budget Deficit Rises to USD 2.28 bn in June 2019
The Moroccan Treasury has announced a budget deficit of USD 2.28 bn in June 2019, up from USD 2.14 bn at the same time last year. The figures released by the Treasury also show gross tax revenue rose 4.5% to USD 11.6 bn in June, up from approximately USD 11.1 bn at the same time last year, and state spending came to approximately USD 19.1 bn in June 2019, up by 15.4%. The budget deficit would have been much greater had it not been for the government’s sale of 8% of its shares in the Moroccan telecommunication provider Maroc Telecom in June.
July 16, 2019

TUNISIA – National Statistics Body Announces a Drop in Foreign Trade Volumes in First Half of 2019
The National Institute of Statistics has released its June 2019 international trade figures. During the first half of 2019, Tunisia’s foreign trade volumes decreased, with a 5.1% decrease in export volumes and a 5.2% decrease in import volumes compared to the same period last year. By sector, export volumes dropped by 4.2% for the textile and leatherwear sector, 5.2% for the energy sector, and 20.2% for the agriculture sector. Phosphate exports saw a slight 0.4% increase. Import volumes dropped by 8.9% in the mechanical and electrical sector. Energy imports increased however by 6.2%.
July 16, 2019

TUNISIA – IMF Recommends that Tunisia Reduce its Budget Deficit and its Inflation Rates
The International Monetary Fund (IMF) was in Tunis from July 11 to 17 to discuss a reform program for Tunisia’s economy with Tunisian Ministers. The IMF found there had been an increase in the risks that could affect Tunisia’s 2019 economic situation. IMF identified the following risk factors: an increase in the value of the Tunisian dinar, an increase in the price of petrol, and a growth slow-down for Tunisia’s main economic partners. “Reaching the budget deficit objective of 3.9% of GDP is crucial in order to limit the accumulation of public debt, which has already reached 77% of GDP at the end of 2018,” warned the IMF.
July 17, 2019

 

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