North Africa News July 2022
Business
EGYPT – Japan’s Sumitomo to build its largest wire harness factory worldwide in Egypt
Japanese industrial corporation Sumitomo has signed an MoU with the Egyptian General Authority for Investment and Free Zones to establish its largest factory worldwide in Egypt. The production unit will manufacture automotive wire harnesses and will be built over an area of 150,000 square meters in the 10th of Ramadan City, 60 kilometers northeast of Cairo. The planned investment budget was not disclosed. The production unit is set to begin operating by the end of 2023.
June 8, 2022
EGYPT – Saudi Arabia’s ACWA Power to build a 1.1-gigawatt wind farm in Egypt
Saudi energy corporation ACWA Power has signed an agreement with the Egyptian Ministry of Electricity and Renewable Energy to build a 1.1-gigawatt wind project in Egypt. The project will require an investment of USD 1.5 bn and is expected to be the largest wind farm in the Middle East upon completion. The onshore project will be located in the Gulf of Suez region and will use wind turbines with blade heights of up to 220 meters. When operational, the wind farm will provide electricity to 1.08 million households and will mitigate the impact of 2.4 million tons of carbon dioxide emissions per year. The project is set to become operational by the end of 2026.
June 21, 2022
EGYPT – German-Arab Chamber of Industry and Commerce to open an office in Cairo
The German-Arab Chamber of Industry and Commerce has signed an MoU with the Egyptian Ministry of Trade and Industry to open an office in Cairo. The opening of the office in Egypt seeks to increase partnership and cooperation between the private sectors of Germany and Egypt, as well as surrounding countries. Through its Cairo office, the chamber will facilitate communication between German and Egyptian companies and organize meetings and conferences to create new partnerships.
June 23, 2022
EGYPT – Emirati real estate group ALQAMZI launches a new project on Egypt’s Mediterranean coast
Emirati real estate development group ALQAMZI has launched a new residential project, SeaZen, in Egypt. The real estate project is located in the city of El-Dabaa, on Egypt’s Mediterranean coast. The project will have a total surface area of more than 820,000 square meters and will require a global investment of EGP 14.0 bn (EUR 713.8 mn). SeaZen will offer around 2,000 residential units, including chalets and villas. Construction works are set to begin in October 2022 and the first phase of residential units will be completed in 2025.
June 29, 2022
MOROCCO – Emirates Logistics launches a new logistics center in Tangier
The Emirates Logistics group has inaugurated a new logistics center in the Tangier Automotive City, on Morocco’s Mediterranean coast. The new center has a total surface of 14,500 square meters and is expected to generate 100 jobs. The center is located less than two kilometers away from the Renault Tangier Med factory and less than 25 kilometers from the factories of automotive parts manufacturers based in the Tangier Free Zone. It will allow rapid delivery in less than two hours between production units and the logistics center.
June 10, 2022
MOROCCO – Morocco imposes an import tax on all products purchased online
Morocco’s Tax and Customs Administration has decided to impose an import tax starting July 1, 2022, on all products purchased on foreign e-commerce websites. Before the decision, products purchased online were exempt from an import tax if their value was below MAD 1,250 (EUR 120). The decision seeks to encourage Moroccans to purchase local products.
June 16, 2022
MOROCCO – French manufacturer Safran inaugurates the extension of its factory in Casablanca
French aeronautics manufacturer Safran has inaugurated the extension of its production plant in Casablanca. The extension, which required an investment of EUR 12.0 mn, will specialize in the production of nacelles – the bodies containing plane engines – for the Airbus A320neo aircraft. With the new extension, Safran will have 60% of its global chain of value produced in Casablanca.
June 21, 2022
MOROCCO – Spirit AeroSystems begins production of Airbus A220 components in Casablanca
American company Spirit AeroSystems has officially launched the production of fuselage components for Airbus A220 planes in its Moroccan factory in Casablanca. The fuselage components will be produced in a production line with a surface of 25,000 square meters and will be directly exported to the assembly site of Spirit AeroSystems in Belfast, Northern Ireland.
June 27, 2022
TUNISIA – Volkswagen partners with a French factory in Tunisia to produce electromechanical valves
Volkswagen has selected the Tunisian factory of Bontaz, a French automotive components manufacturer, to launch a project for the production of electromechanical valves. The production unit is located in Fouchana, 20 kilometers south of Tunis. The partnership between Volkswagen and Bontaz seeks to respond locally to the growing demand of the automotive industry in Tunisia.
June 18, 2022
TUNISIA – Tourist arrivals in Tunisia increased by 104% in the first half of 2022
Tunisia has received more than 2.1 million tourists in the first six months of 2022, marking a 104% increase in comparison with the first half of 2021, according to the Tunisian National Tourism Office. The office expects around 4.8 million tourists to visit Tunisia in 2022. Tourism revenue has also increased in the first half of 2022, reaching EUR 378 mn, up from EUR 242 mn in the previous year, a 56.2% increase.
June 30, 2022
ALGERIA – CMA CGM launches a new Turkey-Spain-France-Algeria maritime route
French maritime freight company CMA CGM has launched a new route between Turkey and Algeria that also runs through Spain and France. The new route, named Turkey Med Express 1.2 (TMX 1.2) departs from Istanbul-Ambarli and serves Gebze, Aliaga (Turkey), Barcelona (Spain), Marseille (France), Bejaia, and Annaba (Algeria) over three weeks.
June 8, 2022
ALGERIA – Algeria inaugurates a new terminal in the Oran International Airport
Algerian President Abdelmadjid Tebboune has inaugurated a new terminal in the Oran International Airport, northwestern Algeria. The new terminal was built over a surface area of 4,000 square meters and has a capacity of 3.5 million passengers per year, which can be extended in the future to 6 million passengers per year. The terminal also has a public car parking with a capacity of 1,200 vehicles.
June 23, 2022
ALGERIA – Algeria’s Tassili Airlines resumes international flights after a two-year suspension
Algerian airline Tassili Airlines, a subsidiary of the national oil and gas company Sonatrach, has resumed its international flights after a suspension of more than two years due to the COVID-19 pandemic. The airline offers flights between the Algerian cities of Algiers, Oran, and Constantine and the French cities of Paris, Strasbourg, and Nantes. Tassili Airlines operates its flights using the Boeing 737-800NG aircraft.
June 27, 2022
Politics
EGYPT – Egypt, EU, and Israel sign a tripartite natural gas export agreement
Egypt, the European Union, and Israel have signed a tripartite natural gas export deal on the sidelines of the East Mediterranean Regional Energy Conference in Cairo. According to the agreement, Israeli gas will be brought via a pipeline to Egypt’s liquefied natural gas terminal on the Mediterranean, where some will be liquefied and transported on tankers to European shores. The deal comes as the European Union is trying to diversify away from Russian gas.
June 15, 2022
EGYPT – Egyptian President concludes visits to Oman and Bahrain
Egyptian President Abdel Fattah El Sisi has concluded a Gulf tour that took him to Oman and Bahrain. During the visits, President El Sisi met with his Omani and Bahraini counterparts and discussed the means of enhancing bilateral cooperation. On the sidelines of the visits, Egypt and Oman signed 11 agreements in the fields of combating monopolies, promoting investment, developing exports, establishing and managing industrial zones, and protecting the environment. Meanwhile, Egypt signed with Bahrain 10 agreements in the fields of economy, science and technology, law and justice, logistics, urban development, trade and investment, tourism, education, and the environment.
June 29, 2022
MOROCCO – Morocco launches e-visas for citizens of 49 countries
Morocco has decided to replace physical visas with electronic visas starting July 10, 2022, for citizens of 49 different countries. Three categories of visitors will benefit from e-visas: (i) citizens of countries that are subject to visas but have been residing in the European Union, the United States, Australia, the United Kingdom, Canada, New Zealand, Switzerland, and Japan for more than 180 days; (ii) foreigners who have obtained a visa that is at least 90 days long for the Schengen Area, the United States, Australia, Canada, the United Kingdom, Ireland, and New Zealand; and (iii) citizens of countries benefiting from relaxed entry requirements to the United States and the Schengen Area, namely Thailand and Israel. The new measure will allow visitors to receive their e-visas for Morocco within 24 to 72 hours and without traveling to Moroccan consulates abroad.
June 23, 2022
MOROCCO – Morocco begins administration of the fourth dose of COVID-19 vaccines for senior citizens
The Moroccan Ministry of Health has decided to begin administering the fourth dose of COVID-19 vaccines to senior citizens aged over 60 and vulnerable people aged over 18. The fourth dose can be taken six months after the third dose.
July 1, 2022
TUNISIA – Tunisian security services foil the attempt of an attack against the Presidential Residence
The Tunisian Ministry of Interior announced that it has managed to foil a terrorist attack near the Presidential Residence in Tunis. The ministry said it has arrested an individual involved in planning an attack against the life of President Kais Saied. The suspect was arrested at a police checkpoint in the street leading to the Presidential Residence and he injured two policemen during his arrest. The Ministry of Interior qualified the suspect as “a lone wolf.”
June 24, 2022
TUNISIA – Over 9.2 million Tunisians can participate in the July 25 Constitutional Referendum
Over 9.2 million registered voters are eligible to participate in the July 25 Constitutional Referendum, Tunisia’s Independent Higher Authority for Elections has announced. Ballots during the day of the referendum will be open until 10 p.m. in order to encourage a maximum number of Tunisian citizens to participate.
June 30, 2022
ALGERIA – Algeria suspends Friendship Treaty with Spain over Western Sahara
Algeria has decided to “immediately” suspend the Friendship and Cooperation Treaty it had concluded in 2002 with Spain due to the new Spanish position regarding the Western Sahara issue, which sides with Morocco. Algeria accused Spain of “violating its legal, moral, and political obligations” regarding the Western Sahara region by supporting the Moroccan Autonomy Plan proposition. Spain had declared its full support of Morocco’s position on the issue in March 2022, putting an end to a one-year-long Moroccan-Spanish diplomatic crisis.
June 8, 2022
ALGERIA – Algeria and Venezuela announce the future opening of a direct air route
Algerian President Abdelmadjid Tebboune has announced that his country will soon sign an agreement with Venezuela to open a direct air liaison between Algiers and Caracas. President Tebboune made the announcement during a state visit of Venezuelan President Nicolas Maduro to Algeria.
June 9, 2022
Economy
EGYPT – World Bank raises its GDP growth forecast for Egypt to 6.1% in 2022
The World Bank has raised its forecast for the growth of the Egyptian economy during 2022 to 6.1%, up from 5.9% in the previous forecast in April 2022. The financial institution also expects Egypt’s GDP to grow by 4.8% in 2023 and by 5.0% in 2024. The World Bank explained that Egypt’s economic performance has improved thanks to the country’s good management of the COVID-19 pandemic, noting that Egypt is the only oil-importing country that was able to maintain positive growth despite the pandemic.
June 7, 2022
EGYPT – Egypt’s budget deficit reaches 5.5% of the GDP in the first 11 months of the 2021-2022 fiscal year
Egypt’s general budget deficit amounted to EGP 436.6 bn (EUR 22.3 bn), equivalent to 5.5% of the GDP, in the first 11 months of the 2021-2022 fiscal year – July 2021 to May 2022, compared to EGP 412.9 bn (EUR 21.1 bn), equivalent to 5.9% of the GDP, during the same period of the 2020-2021 fiscal year. The Egyptian Ministry of Finance announced that total state revenues increased by 12.3%, standing at EGP 1.03 tn (EUR 52.5 bn), while total expenditures rose by 11.2%, reaching EGP 1.47 tn (EUR 74.9 bn).
June 27, 2022
MOROCCO – Morocco revises the 2021 GDP growth to 7.9% instead of 7.4%
Morocco’s High Commission for Planning has revised the country’s GDP growth in 2021 to 7.9%, up from 7.4%. The institution also revised the recession recorded in 2020 to -7.2%, down from -7.0%. The 2021 growth is mainly due to a 17.8% increase in agricultural activity, as well as a 6.6% rise in non-agricultural activities. Morocco’s primary sector recorded a 17.6% growth in 2021. Meanwhile, the secondary sector increased by 6.8% and the tertiary sector reached 6.4%.
June 2, 2022
MOROCCO – Moroccan economy records a 0.3% growth in Q1-2022
The Moroccan economy has witnessed a growth of only 0.3% in the first quarter of 2022, compared to the 2.0% growth recorded in the first quarter of 2021, according to Morocco’s High Commission for Planning. Morocco’s primary sector recorded a 13.9% contraction in the first quarter of 2022, compared to an 18.7% growth in the same period of the previous year. The secondary sector also witnessed a 0.9% decline in activity, compared to a 1.1% growth in the previous year. Meanwhile, the tertiary sector recorded a 4.4% growth in the first quarter of 2022, compared to a 0.8% decline in the same period of 2021.
June 30, 2022
TUNISIA – World Bank predicts a 3.0% GDP growth in Tunisia in 2022
The World Bank has forecast the Tunisian economy to record a 3.0% growth in 2022. The financial institution also expects Tunisia’s GDP to grow by 3.5% in 2023 and by 3.3% in 2024. According to the World Bank, the “modest” recovery of the Tunisian economy is due to “the difficult economic conditions, along with the great political uncertainty.”
June 8, 2022
TUNISIA – Tunisia’s trade balance deficit exceeds EUR 3 bn in the first five months of 2022
Tunisia’s trade balance deficit has reached TND 9.93 bn (EUR 3.10 bn) in the first five months of 2022, compared to TND 5.94 bn (EUR 1.86 bn) in the same period of the previous year. The figure is due to a 35.3% increase in imports in the first five months of 2022, alongside an increase of 25.1% in exports. These figures put Tunisia’s foreign trade coverage ratio at 70.1%, down from 75.8% in the same period of 2021.
June 11, 2022
ALGERIA – Algeria announces a 3.5% GDP growth in 2021
Algeria’s National Statistics Office has announced that the country recorded a 3.5% GDP growth in 2021, compared to a 5.1% recession in 2020. The value of Algeria’s GDP reached DZD 22,021.5 bn (EUR 144.0 bn) in 2021, according to initial estimations. The hydrocarbons sector witnessed the highest increase in revenue (10.3%), followed by industry (5.7%), construction (5.0%), commerce (4.4%), and services (1.5%). Meanwhile, the sector of agriculture and fisheries recorded a 1.3% decline in activity between 2020 and 2021.
June 5, 2022
Key Economic Indicators
