Finance/Banking
The
Algerian Banking Sector: The Long Road Ahead
Despite
their overwhelming position, the six state banks operating
in Algeria remain largely inefficient in stimulating productive
investment. Aware of this problem, the government has decided
to re-capitalize banks and has been lowering the interest
rates applied to various types of loans. The six banks BADR,
BNA, BEA, CNEP, BDL and CPA will witness an increase in their
own funds, allowing them to engage in loan practices that
are more in line with standard universal practices. This month
(October 2005) several state banks will lower their rates,
with a 0.25% reduction to 5.25% on investment loans. Two years
ago the rate was 7%. Mortgage loans for holders of savings
accounts will also carry a reduced rate of 5.75%, also down
one-quarter point. For non-holders of savings accounts the
mortgage rate will be 6.75%. But it will take some time before
these efforts create a positive momentum in the banking sector
and create a real credit culture. [read
here]
Finance/Banking
CDG of Morocco Expands its Scope with Larger
Equity Investments
When
it comes to the financial sector and the insurance industry
in particular, Morocco borrowed a great deal from the French
model. This is particularly striking in the case of Morocco’s
state controlled Caisse de Depot et de Gestion (CDG), which
even borrowed its name from France’s Caisse des Dépôts
et Consignations (CDC). CDG’s operating model is almost
entirely similar to its French peer and one can only read
the comments of the CDC CEO to understand what Morocco’s
CDG is all about. In an article published on September 19
in the French business newspaper Les Echos, the head of CDC
stated, "the Caisse des Dépôts is not just
an arm of the state. Instead, it (i.e.: CDC) intervenes as
a big equity investor with the objective of helping French
corporations by providing them with a stable equity partner.”
As such, CDC is a major shareholder in many of France’s
global corporations such as food giant Danone and hotel chain
Accor, companies that the French government determined as
being components of strategic industries. [read
here]
Corporate
Affairs
Honeywell
Wins a $10 Million Maintenance Contract in Algeria, Strengthens
Operations There
Honeywell
won in September a $10 million contract to deliver maintenance
services to four of Sonatrach's sites in Algeria over a five
year period. This service contract follows a $60 million contract
with Sonatrach Group's subsidiary, Naftec Spa late last year.
Honeywell also announced that it is expanding its presence
in North Africa with the opening of a new office in Algiers,
part of its strategy to drive growth and provide strong process
automation solutions to the oil and gas industry. As part
of its efforts to strengthen its position there, the company
has appointed Abdelilah Amalou as country business leader
and sales manager for its Algerian operations. [read
here]
Economy/Trade
North African Companies As Foreign Investors
in their Own Region
From
Morocco's Attijariwafa Acquiring A Third of Tunisia's Banque
du Sud, to Naftal of Algeria Bidding for Oil Distributor Agil:
North African companies are looking for ways to invest in
neighboring countries within their own region. For some of
these companies, it is a way of recycling some of the billions
of dollars earned in the lucrative oil and gas market, others
are re-channeling part of their profits into promising enterprises,
often through partnerships with European companies. Two of
the most current deals are the recent privatization of BDS
Bank and the pending sell sale of Agil. [read
here]
Industries/Markets
Prices
of Medicines in Morocco to Remain High
Short
takes:
-
Drug prices too high and unlikely to get lower
-
Annual consumption of drugs per capita in Morocco of just
MAD 275
-
The value of the drugs market in Morocco grew from MAD 4.5
billion in 2002 to only MAD 4.8 billion in 2004.
-
Positive outlook as Morocco implements universal drugs coverage
-
Low-priced drug makers, such as generic drug manufacturers
to benefit the most from government payout policy favoring
lowest priced medicines.
[read
here]
Energy/Mining
Gulf Keystone Gets Approval for Algerian
Exploration License
The
independent oil exploration company Gulf Keystone Petroleum,
Ltd. has received notifications from Algeria that two Production
Sharing Contracts ("PSC's") have now been ratified, having
both been approved by Presidential Decrees. These two PSC's
cover the blocks that Gulf Keystone was awarded in the sixth
Algerian international licensing round which was concluded
in Algiers on 23 April 2005. They are the Hassi Ba Hamou contract
perimeter comprising blocks 317b, 322b3, 347b, 348 and 349b
in the Bechar Oused Namous basin, and one block on the Bottena
perimeter in the South East Constantine Basin, block 129.
[read
here]
Energy/Mining
Eni’s
Strengthens its Position in North Africa’s Oil and Gas
Exploration Sector
North
Africa is not a far away territory for the Italian oil company
Eni and October 2005 began with good news in both Algeria
and Libya. Like all other oil and gas companies, Eni is benefiting
from a very lucrative environment as crude oil and gas prices
reached their highest levels ever. Just for the first half
of this year, the company’s operating profit exceeded the
euro 8 billion with a net profit of more than 4.3 billion
euros. These unprecedented results meant that operating profit
rose by 40.1% year on year, while net profit was up by a strong
29.1%. [read
here]
