North Africa News October 2022
Business
EGYPT – China’s OPPO signs an MoU to build a mobile phone factory in Egypt
Chinese electronics company OPPO has signed an MoU with the Egyptian Information Technology Industry Development Agency to establish a mobile phone factory in Egypt. The production unit will require an investment of USD 20.0 mn and its production capacity is expected to reach 4.5 million units annually. The factory is set to be built in the next three to five years and will generate around 900 job opportunities.
Sep. 13, 2022
EGYPT – UAE’s Tabreed earns a contract to build a power plant at the “Capital Med” project near Cairo
The Emirati National Central Cooling Company, known as “Tabreed”, has signed an agreement to provide energy services for the new “Capital Med” medical city project, northeast of Cairo. The contract has a value of around USD 83.4 mn. According to the agreement, the Emirati company will build and operate a power plant to generate energy for the entire medical city. The “Capital Med” project is planned to have a capacity of 4,000 beds, 700 intensive care units, 70 operating rooms, and around 15,000 medical staff.
Sep. 14, 2022
EGYPT – Abu Dhabi Ports acquires 70% stakes in two Egyptian logistics companies for USD 140 mn
Emirati port management company Abu Dhabi Ports Group has completed the acquisition of 70% stakes in Egyptian logistics companies Transmar International Shipping and Transcargo International. The total value of the deal amounted to USD 140.0 mn. The acquisition will allow Abu Dhabi Ports Group to increase its maritime transit operations in North Africa and the Red Sea region.
Sep. 14, 2022
EGYPT – Egypt increases transit tolls in Suez Canal
The Suez Canal Authority has decided to increase transit tolls in the canal, starting January 2023. The toll will increase by 10% for dry bulk ships and cruise ships and by 15% for all other types of vessels. The Suez Canal Authority explained that the increase comes in light of the current global inflation and the changes that the maritime transport sector has witnessed.
Sep. 17, 2022
MOROCCO – Royal Air Maroc resumes daily flights between Morocco and Qatar
Morocco’s national air carrier Royal Air Maroc has decided to resume its daily flights between Casablanca and Doha, Qatar. The flights have been suspended since March 2020 due to the COVID-19 pandemic. The route will be operated using a 302-seats Boeing 787-9. The resumption of the daily flights comes a few weeks before the beginning of the 2022 FIFA World Cup in Qatar. For this occasion, Royal Air Maroc has signed an agreement with Morocco’s Ministry of Sports and the Moroccan Royal Football Federation to offer two-way tickets between Casablanca and Doha for only MAD 5,000 (EUR 463) for the entire duration of the tournament.
Sep. 8, 2022
MOROCCO – Siemens Gamesa decides to close its wind turbine blades factory in Morocco in 2023
German multinational Siemens Gamesa has decided to close its factory in Tangier, northern Morocco, due to a decrease in global demand for the type of wind turbine blades produced in the factory. The closure will go into effect at the start of 2023 and it will affect 500 workers. The Tangier factory is one of many Siemens Gamesa production units that will get suspended around the world, globally affecting 2,900 workers. Despite closing the Tangier factory, Siemens Gamesa will maintain its regional headquarters in Casablanca.
Sep. 15, 2022
MOROCCO – Outsourcing multinationals Majorel and Kolibri to create 3,000 new jobs in Morocco
International outsourcing companies Majorel and Kolibri have signed two MoUs with Morocco’s Ministry of Digital Transition and Ministry of Industry to launch new investment projects in the country. According to the two agreements, Luxembourg-based Majorel and Canada-based Kolibri will invest MAD 375.0 mn (EUR 34.9 mn) in outsourcing offices in Morocco by 2027, generating around 3,000 new jobs.
Sep. 22, 2022
TUNISIA – DP World expands its wholesale e-commerce website Dubuy.com in Tunisia
Emirati logistics and global supply chain multinational DP World has expanded its e-commerce website, Dubuy.com, in Tunisia. The website is a global wholesale marketplace that offers various products and comprehensive logistics services, including storage and delivery. DP World intends to use this expansion into Tunisia as a hub to grow its business in North Africa and the entire African continent.
Sep. 5, 2022
TUNISIA – Germany’s Nexans Autoelectric Group inaugurates its fourth factory in Tunisia
German multinational Nexans Autoelectric Group has inaugurated a new factory in Nabeul, northeastern Tunisia. The production unit specializes in the assembly of cables for the automotive industry. The factory will initially employ 400 workers, before reaching 1,500 employees after a few months. The factory is Nexans Autoelectric Group’s fourth production unit in Tunisia. The German multinational already had three factories in Sousse and Monastir, eastern Tunisia, employing around 5,000 workers in total.
Sep. 9, 2022
TUNISIA – Tunisair resumes flights to London Heathrow and cancels flights to London Stansted Airport
Tunisia’s national air carrier Tunisair has announced the resumption of its flights to the London Heathrow Airport. Tunisair’s two weekly flights between Tunis and London have been transferred from the London Heathrow Airport to the London Stansted Airport since July 23, 2022.
Sep. 17, 2022
ALGERIA – Algeria reduces oil production to 1.055 million barrels per day in October
Algeria’s oil production will drop to 1.055 million barrels per day in October, according to the country’s Ministry of Energy. The decision to reduce oil production is in line with OPEC’s decision to reduce global oil production by 100,000 barrels per day in October.
Sep. 5, 2022
ALGERIA – Italy’s Eni acquires British Petroleum’s stakes in Algerian gas fields
Italian oil and gas company Eni has completed an acquisition of all the activity of British Petroleum in Algeria. The acquisition mainly concerns two gas fields in In Amenas and In Salah, in the Algerian desert. British Petroleum used to own 45.89% stakes in the In Amenas gas field and 33.15% stakes in the In Salah field. The two gas fields have jointly produced around 11 billion cubic meters of natural gas and 12 million barrels of liquefied propane gas in 2021.
Sep. 7, 2022
ALGERIA – UK’s Petrofac earns a EUR 300 mn contract for a gas field project in eastern Algeria
British engineering firm Petrofac has earned a contract to build a “separation and decarbonization unit” in the Tinrhert-Alrar gas field, eastern Algeria. The contract, financed by Algeria’s national oil and gas company Sonatrach, has a value of DZD 42.7 bn (EUR 309.3 mn) and a completion deadline of 36 months. The project will increase the production capacity of the Tinrhert-Alrar gas field by 10 million cubic meters per day, to reach a daily total production of 25 million cubic meters.
Sep. 29, 2022
Politics
EGYPT – Egyptian Senate approves a new draft labor law
The Egyptian Senate has approved a new draft labor law that brings several modifications to the legal regulations of the relationship between employers and employees. According to Egyptian media, the new legal text would establish the principle of linking wages to productivity in order to reassure investors and motivate workers to become more productive. The draft labor law also provides for severe fines against employers who discriminate between their employees or are involved in forced labor.
Sep. 20, 2022
MOROCCO – Morocco completely lifts COVID-19 entry requirements
Moroccan authorities have decided to fully cancel the requirements of PCR tests or vaccinations against the coronavirus to enter the country. Incoming passengers now have to only fill out a sanitary form to enter Morocco. Before the decision, visitors had to present either a full-vaccination certificate or a negative PCR test for the coronavirus in order to be eligible to enter the country.
Sep. 30, 2022
TUNISIA – Tunisian army kills three alleged terrorists in midwestern Tunisia
The Tunisian Ministry of Defense has announced that the army has killed three alleged terrorists in Mount Selloum, midwestern Tunisia. According to the press release issued by the Ministry of Defense, the three suspects were members of the ISIS terrorist organization.
Sep. 2, 2022
TUNISIA – Several Tunisian parties announce the decision to boycott the December 17 legislatives
At least six Tunisian political parties have announced their decision to boycott the legislative elections planned for December 17, 2022. The parties include Ennahdha (Islamist party), Al Joumhouri (Social-liberal party), Ettakatol (Social-democrat party), Attayar (Social-democrat party), the Labor Party (Communist party), and El Kotb (Socialist party).
Sep. 29, 2022
ALGERIA – Algerian President conducts a small government reshuffle
Algerian President Abdelmadjid Tebboune has conducted a small government reshuffle. Some of the ministers that were substituted include the Minister of Health, the Minister of Transport, the Minister of Higher Education, and the Minister of Public Works and Infrastructure. Meanwhile, the Prime Minister, the Minister of the Interior, the Minister of Foreign Affairs, and others have all maintained their positions.
Sep. 8, 2022
ALGERIA – Algeria and Mauritania sign 26 bilateral agreements during the 19th Joint Commission
Algeria and Mauritania signed 26 bilateral agreements during the 19th Algerian-Mauritanian Joint Commission meeting, held in Nouakchott. The agreements cover various sectors including trade, electricity, renewable energy, local administration, digitalization, maritime transport, agriculture, professional training, etc. One of the most important agreements signed by the two countries gives Algerian boats the right to fish off Mauritania’s Atlantic coast, according to an annual quota.
Sep. 14, 2022
ALGERIA – Russia and China support Algeria’s potential candidacy to join BRICS
Russia and China have expressed their support for Algeria’s potential candidacy to join the BRICS economic bloc. Russia’s support was expressed by the Russian Ambassador to Algiers during a press interview. Meanwhile, China’s support was expressed by the Chinese Minister of Foreign Affairs during a meeting with his Algerian counterpart in New York. Algerian President Abdelmadjid Tebboune announced in July 2022 that Algeria is interested in the BRICS economic bloc and is studying a potential candidacy to join it.
Sep. 25, 2022
Economy
EGYPT – Central Bank of Egypt increases the required reserve ratio to 18%
The Central Bank of Egypt has decided to increase the required reserve ratio for Egyptian banks from 14.0% to 18.0%. According to the central bank, the decision seeks to achieve price stability in the country over the medium term.
Sep. 22, 2022
EGYPT – Egypt’s LNG exports reach more than USD 8 bn in value in the 2021-2022 fiscal year
Egypt’s exports of liquefied natural gas have reached a total value of around USD 8.0 bn in the 2021-2022 fiscal year, between July 2021 and June 2022. In terms of volume, Egyptian liquefied natural gas exports increased by 7.2 million tonnes to reach a total volume of around 43.2 million tonnes. The increase is mainly attributed to the growing need for natural gas in Europe, due to the ongoing energy crisis.
Sep. 26, 2022
MOROCCO – Morocco’s inflation rate reaches 8% in August 2022
Morocco’s inflation rate reached 8.0% in August 2022, resulting from a 14.1% annual increase in the consumer price index for food products and a 4.0% rise for non-food products. The sector that witnessed the highest annual increase in prices is transportation, with a 12.8% increase. Compared to July 2022, the consumer price index grew by 0.3%, resulting from a 1.5% increase for food products and a 0.5% rise for non-food products.
Sep. 21, 2022
MOROCCO – Morocco’s central bank increases the key interest rate to 2%
Morocco’s central bank, Bank Al-Maghrib, has increased the country’s key interest rate from 1.5% to 2.0%. The decision seeks to counter the growing level of inflation in the country. It is the first time that Bank Al-Maghrib has increased the key interest rate since 2008. The financial institution expects Morocco’s inflation rate to reach a high level in 2022, before dropping in 2023.
Sep. 27, 2022
MOROCCO – Morocco records a 2% economic growth in the second quarter of 2022
Morocco’s economic activity has witnessed a growth of only 2.0% in the second quarter of 2022, compared to a 14.2% growth in the second quarter of the previous year. This is mainly attributed to a 15.5% decline in agricultural activity and a growth of only 4.2% in non-agricultural sectors.
Sep. 30, 2022
TUNISIA – Inflation rate in Tunisia reaches 8.6% in August 2022
The inflation rate in Tunisia has maintained its upward trend, reaching 8.6% in August 2022, after 8.2% in July, 8.1% in June, and 7.8% in May. According to the National Statistics Institute, the increase in the inflation rate is mainly attributed to a rise in the prices of food products by 11.9% between August 2021 and August 2022. Some of the products that witnessed the highest increase in prices include eggs (28.3%), poultry (22.1%), cooking oil (21.4%), fresh fruits (18.4%), fresh vegetables (15.8%), and cereals (12.7%).
Sep. 5, 2022
TUNISIA – National minimum wage in Tunisia increases by 7%
The Tunisian government and the Tunisian General Labor Union have signed an agreement to increase the country’s national minimum wage by 7.0%. According to the agreement, the monthly minimum wage for employees with 40-hour work weeks will become TND 416.7 (EUR 129.8), while employees working 48 hours per week will have a minimum wage of TND 489.2 (EUR 152.6) per month. The increase seeks to help workers cope with the growing inflation in the country.
Sep. 15, 2022
ALGERIA – Algeria’s inflation rate reaches 9.4% in July 2022
Algeria’s annual inflation rate reached 9.4% in July 2022, according to the country’s National Statistics Office. The inflation rate, however, is slightly below the one recorded in June 2022, when it reached 10.8%. Between July 2021 and July 2022, the prices of food products in Algeria increased by 13.4%, including an 11.9% rise in the prices of fresh food products and 14.8% for manufactured food products. Meanwhile, the prices of manufactured goods and services increased by 7.2% and 3.7%, respectively, between July 2021 and July 2022.
Sep. 13, 2022
Key Economic Indicators
