ECONOMY
& TRADE
Free-Trade Agreements Not Yet in Favor of
Morocco
It has been seven years since Morocco signed the Arab free-trade
zone agreement, its first, and the results are disappointing.
In all, six trade zones have been established since 1999
and all but one resulted in a trade deficit for Morocco.
The only market where Morocco exports more is Jordan, but
with in Arab zone, the total deficit reached the record
of MAD 16.77 billion in 2005, compared to MAD 11.45 billion
in 2001.
[read
here]
BANKING & FINANCE
CPA: First Algerian Bank to be Privatized
Foreign
banks interested in the privatization of the Algerian state-owned
Credit Populaire d’Algerie (CPA) had until November 7, 2006
to submit their letter of interest. Those that met the deadline
have received the detailed requirement and transaction documents,
according to the procedures established by Algeria’s privatization
authority.
[read
here]
ECONOMY
Morocco's Foreign Debt Down, Domestic One on
the Rise
Despite
a slight decrease in the first quarter of this year, the Moroccan
public debt remains elevated. As of mid year 2006, Morocco’s
debt reached MAD 380.15 billion. That is a whopping 83% of
the country’s 2005 GDP.
[read
here]
INVESTING
Kuwaiti Investors Look at North African Opportunities
Kuwaiti
asset management firm Kipco Asset Management Company (Kamco)
is eyeing growth opportunities in North Africa, while independent
oil firm PetroGulf, a unit of International Investment Group
is reportedly planning to invest $500 million on a new North
Africa oil exploration unit.
[read
here]
SECTOR
REVIEW
The Moroccan Construction And PublicWorks Sector:
Industry Analysis
The
construction and public works sector (CPW) in Morocco \is
in good health, thanks to various economic projects, with
a building segment boosted by social housing and growth in
property loans. The economic climate favors the construction
and public works sector, with a return to GDP growth (expected
to reach nearly 7% in 2006). Furthermore, despite a steep
rise in the price of input materials, inflation is broadly
under control. We also note the positive effect of growth
in tourism (an average increase in revenues of 14% between
2002 and 2005) and the various economic mega-projects that
have either been launched or are in their final stages.
[read
here]
INDUSTRIES
AND MARKETS
Weak
Port Infrastructure Challenges Algeria's Trade Competitiveness
“The port of Algiers has reached its limits.” This is the
conclusion reached by the country’s transport minister to
emphasize the looming problem of saturation the port of Algiers
is facing. Both the port authority Epal and the customs service
agree with this conclusion, emphasizing that the port’s facilities
cannot cope with even today’s demands. And the consensus that
decisions have to be made soon to change both the port’s organizational
structure, and the legislation that would open the door to
investments.
[read
here]
TRADE & ECONOMY
Are Slowing Imports Bad for the Economy?
While
most praise Algeria for its reduction of global import spending,
few economists are warning bells that such trend does not
bode well for the North African country’s economy. In the
first half of 2006, Algeria’s import bill fell sharply from
its year-ago level. Looking at sectoral results, one cannot
ignore the fact that the value of imports for agricultural
machinery, such as tractors and other mechanical equipment
fell by a massive 27.5% year on year in 1H06. In all, spending
for this category of equipment dropped to $87 million.
[read
here]
INDUSTRIES
AND MARKETS
No-Guarantee
Mortgage Loans Make their Debut in the MoroccanMarket
Consumer
credit and other forms of loan are expanding and growing in
scope in Morocco to the point that alarm bells are ringing
loud. Over a nine-month period this year, the CCG’s Fogarim
(Fonds de Garantie pour Crédits Immobiliers), the state
fund that guarantees mortgage loans for individuals with unstable
incomes, received 7,000 applications that have already been
accepted by banks. Although the volume is not massive, the
quick ramp up in applications for mortgage loans among low
and unstable wage earners is indicative of a trend that private
and state banks hope to leverage given the guarantees that
the state provides.
[read
here]
