Industry
Profile
The Moroccan Cement Sector Facing Globalization
Attijariwafa Bank has recently released a special report
on the Moroccan cement industry. Titled "The Moroccan Cement Industry
and the Challenges of Globalization," the report indicates that there
are four companies involved in the sector, three of which are listed
in the Casablanca Stock Exchange. Over the past years, the cement sector
witnessed significant growth but today it is facing mounting challenges
as the Moroccan economy opens up given the country's requirements with
its various international and bilateral trade agreements.
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Economic Reforms
Algeria Rescucitates Plan to Liberalize the Petroleum
Sector, to Privatize Three State Banks
It was from Paris, France that the Algerian finance minister Abdelatif
Benachenhou announced this week his government's intention to amend
Algeria's energy and mining laws and to opene three state banks to private
investors.
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Finance
Lydec Expected to Enter the Casablanca Bourse in 2005
Lydec of Morocco, the private operator of water and power services
in Greater Casablanca, has recently attracted attention when 18% of
its capital was purchased by the CDG bank. The stock was previously
controlled by the Spanish firm Endesa International. CDG joins three
key shareholders in Lydec, Aguas of Barcelona, which has 5%, and the
insurance firm Al Wataniya, which invested MAD 400 million for the 18%
formerly owned by Electricité de France.
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Construction
Market
Public Sector in Algeria to Fund Construction of 1
Million Housing Units by 2009
The construction sector in Algeria has been on the overdrive mode and
expanding fast. Hundreds of thousands of social housing units are planned
to be built over the next five years, making the sector even more attractive
to construction firms and others involved in that market. Entirely funded
by the state, this program is meant to alleviate some of the tension
in the Algerian housing market, characterized by serious shortages.
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Business
and Currencies
Impact of a Weak Dollar on Moroccan Businesses
The record-breaking value of the European currency the Euro against
the U.S. dollar has not been without an impact on Moroccan businesses.
While the weakening of the greenback has been a source of worry to European
firms, in particular the ones that do business in the United States,
Moroccan companies, in contrast, should benefit substantially from this
trend given their exports are heavily focused on the European market.
European absorbs some 76% of Morocco's exports and is the origin of
65% of the North African country's imports.
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Energy Sector
Proposed Petroleum Law in Algeria in Debate Again
The Algerian government is seeking to introduce changes in the hydrocarbon
laws, aiming at liberalizing the sector and eventually opening the capital
of Sonatrach to private investors. The news was made recently by Prime
Minister Ahmed Ouyahia at the fall opening session of the Senate.
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Business Activity
Sluggish summer for Moroccan Businesses
Business activity was down sequentially in Morocco in the third
quarter this year, according to the CGEM business federation. The number
of companies that have reported in the second quarter an increase in
production, sales and exports with respectively 35%, 43% and 29% of
survey respondents, fell to 31%, 40% and 20% in the third quarter.
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Economic
Activity
The Moroccan State Ownership of Business Entities
The state ownership of business assets in Morocco is still significant
despite the existence of a privatization program and an outlook calling
for a lower role for the state in the national economy. The state is
still not fully disengaged yet from some of the economic activity that
is generally seen as being the domain of the private sector. According
to data from the privatization and state participation division (Direction
des Entreprises Publiques et de la Privatisation - DEPP), despite a
privatization program that was launched in 1993, only 66 companies were
actually transferred to the private sector. The program began with 114
entities for sale.
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Pharmaceuticals
High Insulin Prices in Morocco
Moroccan diabetics spend a great deal of money on insulin. This is
because pharmacists charge exorbitant prices to protect their high margins.
Their pricse are three times or more what drug manufacturers charge. In
Morocco, a sizeable portion of the insulin market is subject of government
regulation as drugs makers sell more than half of their products to the
state through a tender process. As part of this process, public hospital
inpatients are fully covered and do not pay for the insulin, but as soon
as they walk out, they face a supply chain where prices make no sense.
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Insurance