SOCIAL
AND LABOR AFFAIRS
When Globalization Hurts Western Economies:
Anxiety over French Business Relocations to North Africa
Two cases this week have highlighted the difficult topic
of business relocation from France to North Africa with
their implications on job losses. The first concerns the
lingerie maker Aubade, which announced the transfer of its
activities to Tunisia, a move characterized by French observers
and trade union as “falling victim of maximum corporate
profit.”
[read
here]
ECONOMY AND TRADE
Central
Bank of Tunisia Raises Key Rate by 25 Basis Points to 5.25%
The Tunisian Central Bank decided to raise the
key rate by one quarter point to 5.25%, effective September
26, 2006. Details of the bank’s decision follows...
[read
here]
AGRICULTURE
Soaring Meat Import in Algeria with End of
Import Ban
Two
Latin American nations, Brazil and Uruguay, have been the
primary sources of Algeria’s red meat imports as the
heavy consumption month of Ramadan continuous. In the month
of July alone, Algeria purchased 20,000 tons of frozen red
meat. The imports were conducted by some forty private importers
who hold a government license, in an operation aimed at covering
demand in Ramadan.
[read
here]
TOURISM
Morocco and Tunisia: Europe's Next Retirement
Hubs
An
increasing number of foreigners, mostly budget-sensitive Europeans,
in particular French speaking, are selecting to retire in
Morocco and Tunisia.
[read
here] [or
listen to the audio file here]
ECONOMY
Inside Algeria's Informal Currency Exchange Market
Since
the 1970s, the informal currency exchange market in Algeria
has been continuously growing in scope and value, becoming
a sizeable commercial activity across the entire nation. Several
millions of dollars, euros, yens and other hard currencies
are exchanged daily, though transactions that go unrecorded
and unchecked by financial authorities. In the capital city
Algiers, the main exchange center is Port Saïd Square with
its affiliated mini-centers of Bab El Oued, Laakiba and elsewhere.
In the other populated cities of Annaba, Constantine, Oran,
Setif or Tebessa, the euro and the dollar are sold like any
other product through networks that are difficult to crackdown
or even penetrate, but which operate without any fear of law
enforcement.
[read
here]
FINANCIAL
SECTOR
State of the Insurance Market in Algeria and
Morocco
The insurance industry in Morocco has been undergoing an important
consolidation phase, which is expected to accelerate in 2007
with the possible disruptive entry of American insurers. Today,
only five companies operate in that sector as the number of
players could continue to shrink. In neighboring Algeria,
the insurance sector opened
to the private sector a decade ago but has failed to take
off as initially hoped. While the insurance market there is
displaying some pattern of positive growth, it remains largely
inconsequential given the size of the economy and the expected
role of insurance in general.
[read
here]
FINANCIAL
SECTOR
Algeria’s Assets Abroad
With
a foreign currency reserves in the billions and counting,
Algeria has no choice but to invest some of its money oversees.
It has been using state-owned oil company Sonatrach to place
and manage a sizeable share of its assets abroad. The oil
giant is present in Peru’s Camisea gas fields, in Spain through
an investment in a polypropylene plant in partnership with
the German BASF, in a re-gasification terminal in Ferrot,
as well as in the cogeneration installations with the Spanish
Cepsa. It has also invested in the Transmed gas pipeline linking
Algeria to Italy and operated by TMPC.
[read
here]
INDUSTRIES
AND MARKETS: Steel Industry:
A Good 2005 for Morocco’s Steel Makers
Demand
for steel in Morocco and worldwide in general has been a boon
for Moroccan steel makers. Not only large infrastructure projects
in Morocco stimulated demand domestically, but China’s strong
consumption of steel has further exacerbated tension in the
international markets helping prices increase. So much so
that the Moroccan companies operating in that industry, such
as Sonasid have recorded strong results last year. The question
today is whether such performance can be maintained this year.
[read
here]
More
on North Africa Steel:
Steel
Industry: Sonasid and Arcelor
Steel
Industry: Mittal Steel in Algeria- Short Profile
AUDIO.NAJ