Border
Control
Smuggling
Along the Algerian-Moroccan Border
The
Algerian border town of Maghnia is a busy place, but not as
intense as it used to be when border crossing was allowed.
This is the Algerian town nearest to the Moroccan territory.
Maghnia is also a poor region, where contraband and trafficking
account for a large share of the local economy. While there
is poverty, the land here is generous and generates some of
the best produce in the country. It is a potato-producing
zone, which has received awards for the quality of its output.
But potato farming is not enough to employ the local workforce
and contraband becomes the inevitable activity for the jobless
young men. [read
here]
Industrial
Development
The
Unusual Competition: Algerian Regions Compete for a New Oil
Refinery
Petroleum
refining is high on Sonatrach's agenda. The company ambitions
to spend $8 billion, in which $3 billion will be spent with
a Japanese partner on building a new refinery. The
refinery is a major project. When completed it will employ
3,000 workers, who will produce 15 million tons of refined
oil. Because of its size, it will rival the large-scale complex
of Skikda in eastern Algeria. But
that's not all. Sonatrach will also build four integrated
plants that will benefit one north-central province. The site
selection criteria include sites that cannot be used for urban
development or agricultural activity. The site must also be
close to a seaport, pipelines, rail link, and other conditions
based on infrastructure availability. [read
here]
Economy
Morocco
Faces Strong Likelihood of Economic Contraction
The latest
economic forecast for Morocco should worry the government.
This month, the High Planning Commission (Haut Commissariat
au Plan - HCP) lowered its estimated growth for 2005 to a
mere 1.2%, down from the 3% projected by the state budget
and the previous HCP calculation of 2.6%. And
this may still be an optimistic assessment. The likelihood
of an economic contraction is stronger than ever. This is
because the HCP report released in early June assumes the
price of a single barrel of oil to average $36 in 2005 and
predicts an average agricultural season. With the barrel of
oil reaching $60, the Moroccan economy could indeed produce
dismal results when this year ends. [read
here]
Economy
Algeria’s
Foreign Currency Stock Nears $50 billion
Algeria’s
foreign currency stock was $46 billion at the end of May 2005.
This stock grew 6.7% from its December 2004 level, and by
a strong 39.8% from December 2003. This
cushion of foreign currency reserve represents the equivalent
of three years of imports at current consumption levels. It
is essentially the high oil prices of between $47 and $50
per barrel of the past few months that helped Algeria boost
its reserve. [read
here]
Company/Industry
Moroccan
Rail Service Shows Strong Activity
With a
new CEO and a MAD 17 billion investment budget, the Moroccan
rail company ONCF appears invigorated. In 2004, the company
registered record results and ambitions to grow at a fast
rate to carry 30 million passengers and 10 million tons of
cargo (excluding phosphates) by 2009. [read
here]
Business
Lufthansa
to Announce New Algerian Destination
The German
airline carrier Lufthansa will inaugurate its first flight
to Algiers on July 15. The news was made public by the German
ambassador to Algiers, Wolf Kischlat, in the opening ceremony
last week of a conference on Algerian-German partnership in
technology, the environment, and water held in the Hilton
Hotel Algiers. Lufthansa has reportedly scheduled five weekly
flights from Frankfurt. [read
here]
