North Africa News June 2023
Business
EGYPT – US company Xylem inaugurates a water pump factory in Egypt
US-based water solutions supplier Xylem has inaugurated a factory for water pumps in Egypt. The project required an investment budget of EGP 300 mn (EUR 9.04 mn) and will have an annual production capacity of 2,000 to 4,000 water pumps. The factory will manufacture pumps for irrigation, central heating and air conditioning systems, construction and commercial services, as well as final suction pumps used in industry and agriculture.
May 23, 2023
EGYPT – Suez Canal Economic Zone secures USD 487 mn in new investments from Chinese companies
The Suez Canal Economic Zone has signed four agreements with a total value of USD 487 mn with Chinese companies to establish new projects in the Ain Sokhna Industrial Zone, off the coast of the Suez Canal. One of the agreements was signed with Chinese energy operator Hidier Group to build a USD 265 mn power station. Another agreement with Hidier Group concerns the establishment of a USD 100 mn factory for the manufacturing of coke-based construction materials. The third agreement was signed with the Shandong Tianyi Chemical Corporation for the construction of a petrochemicals factory with a budget of USD 110 mn. The final agreement, with Golden Springs Group, will establish a textile manufacturing unit for USD 12.0 mn.
May 26, 2023
EGYPT – Beko and Bosch obtain Golden Licenses to build factories in Egypt
Egypt’s General Authority for Investment and Free Zones (GAFI) has delivered Golden Licenses to two household appliance manufacturers, Turkey’s Beko and Germany’s Bosch, to establish production units in Egypt. The production unit built by Beko will have an investment budget of USD 107 mn and is set to become operational by the end of 2023. It will manufacture various household appliances. As for the Bosch factory, it will cost around EUR 50.0 mn and it is set to launch in the last quarter of 2024. It will specialize in the production of fridges and cookers.
May 27, 2023
MOROCCO – Morocco signs agreements to create new air routes with Sweden and Denmark
Morocco’s national tourism office has signed two agreements with Swedish airline SAS and Norwegian Air Shuttle to launch new weekly flights from Morocco to Sweden and Denmark. SAS will operate flights from Agadir to Stockholm and Copenhagen, while Norwegian Air Shuttle will operate flights from Marrakech to Stockholm and Copenhagen. The new routes are set to launch in November 2023.
May 8, 2023
MOROCCO – US-based Hexcel inaugurates an extension of its composite material factory in Morocco
Hexcel, an American manufacturer of composite materials for the aeronautical industry, has inaugurated an extension of its factory in Casablanca. The extension is 13,000 square meters large and required an investment of around USD 30.0 mn. It is set to increase Hexcel’s workforce in Morocco from 140 workers to 400 by 2026 and it will double the company’s production capacity.
May 10, 2023
MOROCCO – Portugal’s Valerius Texteis decides to launch a textile recycling project in Morocco
Portuguese textile operator Valerius Texteis has signed an agreement with Moroccan textile company SG3H to launch a joint project in Morocco for textile recycling. The two companies will allocate a budget of around MAD 1.0 bn (EUR 91.7 mn) for the project, which is expected to generate 1,500 new jobs.
May 12, 2023
MOROCCO – Chinese home appliances manufacturer Haier enters the Moroccan market
Chinese home appliances manufacturer Haier has officially entered the Moroccan market. The company will market its products through various resellers across Morocco. Haier is also studying the possibility of launching a local production unit in Morocco before 2030 to strengthen its supply chain in North Africa.
May 16, 2023
TUNISIA – Schneider Electric expands into the Tunisian market
French industrial group Schneider Electric has officially begun marketing its energy efficiency and electricity products in Tunisia through a partnership with local company Electro Diesel Tunisie. The French company will mainly target customers in the industry and the construction sectors.
May 11, 2023
ALGERIA – Belgian company Ninolac to build an infant food factory in Algeria
Belgian infant food manufacturer Ninolac has signed a partnership agreement with Algerian dairy products manufacturer Achir Lait to build the first factory in Algeria specializing in the production of formula milk and infant cereal. The production unit will be located in Ain Boucif, northern Algeria. The budget allocated for this investment was not disclosed.
May 15, 2023
ALGERIA – French supermarket chain Auchan to enter the Algerian market
French supermarket chain Auchan has announced the opening of its first supermarket in Algeria in the fourth quarter of 2023. The supermarket will have a total surface of 5,000 square meters. The French company intends to implement even more supermarkets in Algeria in the “near future.”
May 15, 2023
ALGERIA – British consortium earns a USD 1.5 bn contract to build a petrochemical complex in Algeria
British consortium Petrofac-HQC has earned a USD 1.5 bn contract to build a petrochemical complex for the production of polypropylene in Arzew, western Algeria. The contract is for engineering, procurement, and construction with a deadline of 42 months. The petrochemical complex will be under the management of STEP Polymers, a subsidiary of Algeria’s national oil and gas company Sonatrach. The project will have a production capacity of 550,000 tonnes of polypropylene per year.
May 18, 2023
Politics
EGYPT – Egypt and Oman sign a double tax agreement
Egypt and Oman have signed a double tax agreement to avoid double taxation and tax evasion. The agreement was signed during an official two-day visit of the Sultan of Oman, Haitham bin Tariq, to Egypt.
May 22, 2023
MOROCCO – Morocco and Portugal sign 12 cooperation agreements
Morocco and Portugal signed 12 cooperation agreements during the 14th Morocco-Portugal High-Level Meeting held in Lisbon. The agreements cover various sectors, including civil protection, judicial cooperation, rural development, cultural and scientific cooperation, youth, tourism, research and development, social security, handicrafts, and the environment.
May 12, 2023
TUNISIA – Tunisian President dismisses the Minister of Industry
Tunisian President Kais Saied has dismissed the Minister of Industry, Mines, and Energy, Neila Nouira Gonji, without specifying the reasons. The dismissal is the latest in a series of government changes made by the Tunisian President since the beginning of 2023, including changes of the ministers of education and agriculture in January, of foreign affairs in February, and of the interior in March.
May 4, 2023
TUNISIA – Terrorist shooting in Tunisia kills 5 and injures 10
A terrorist shooting in Tunisia has killed five people and injured 10 others. The attack targeted an annual Jewish pilgrimage at El Ghriba Synagogue in Djerba, southeastern Tunisia. The deceased victims include three security officers and two pilgrims, one from Tunisia and the second from France. The attacker, described by Tunisian authorities as a “lone wolf” was killed by security forces during the attack.
May 10, 2023
Economy
EGYPT – Annual inflation rate in Egypt declines to 31.5% in April 2023
Egypt’s annual inflation rate has declined from 33.9% in March 2023 to 31.5% in April 2023. This is the first time that the inflation rate in Egypt has decreased in nine months. In terms of their monthly evolution between March and April, the prices of food and beverages increased the most, at 2.3%, notably the prices of fish (+7.3%) and the prices of grains and bread (+7.0%). Meanwhile, the prices of transportation increased by 0.9% between March and April and those of housing, water, electricity, and fuel increased by 0.6%.
May 10, 2023
EGYPT – Egypt records a 7.1% unemployment rate in Q1-2023
Egypt’s unemployment rate has slightly decreased from 7.2% in the fourth quarter of 2022 to 7.1% in the first quarter of 2023. The unemployment rate among males in the first quarter of 2023 is reported at 4.5%, while the rate for females is significantly higher at 19.2%.
May 18, 2023
MOROCCO – Morocco’s annual inflation rate slightly declines to 7.8% in April 2023
Morocco’s annual inflation rate has slightly declined to 7.8% in April 2023, from 8.2% in March and 10.1% in February. This evolution is attributed to a 16.3% annual increase in the prices of food products between April 2022 and 2023, along with a lesser increase of only 2.0% in the prices of non-food products. In the latter category, the annual changes in prices vary between a 0.1% decline for transportation and a 6.7% increase for restaurants and hotels.
May 22, 2023
TUNISIA – Annual inflation rate in Tunisia decreases to 10.1% in April 2023
Tunisia’s annual inflation rate has slightly declined from 10.3% in March 2023 to 10.1% in April. Food products are the most affected by inflation, with their prices increasing by 15.6% between April 2022 and 2023, notably sheep meat (30.4%), eggs (29.8%), poultry meat (27.5%), cooking oils (23.8%), and beef meat (20.9%). Meanwhile, the prices of manufactured goods increased by 8.6% and those of services by 7.5% between April 2022 and 2023.
May 6, 2023
TUNISIA – Tunisia records a 2.1% economic growth in Q1-2023
Economic activity in Tunisia has recorded annual progress of 2.1% in the first quarter of 2023, up from a 1.8% growth in the last quarter of 2022. The growth is attributed to a 3.2% increase in the added value of the services sector and a 2.2% growth in the industry sector. Meanwhile, the agricultural sector recorded a recession of 3.1% between the first quarter of 2022 and 2023.
May 15, 2023
TUNISIA – Tunisia’s unemployment rate increases to 16.1% in Q1-2023
Tunisia’s unemployment rate has increased from 15.2% in the fourth quarter of 2022 to 16.1% in the first quarter of 2023. The unemployment rate increased for both genders: from 12.9% to 13.9% for males and from 20.1% to 21.2% for females.
May 15, 2023
ALGERIA – Algeria’s inflation rate slightly declines to 9.7% in April 2023
Algeria’s annual inflation rate has slightly decreased from 10.1% in March 2023 to 9.7% in April. The inflation rate varies between 1.0% for transportation and communication services and 15.7% for education, culture, and entertainment. Food products have recorded a 13.7% increase in prices between April 2022 and 2023.
May 25, 2023
Key Economic Indicators
