Arab countries of North Africa feel coronavirus’ economic pain

1 / 2
Impoverished Tunisian citizens gather outside Tunis on March 30 to claim the financial aid promised by the government. (AFP)
2 / 2
Short Url
Updated 12 August 2020
Follow

Arab countries of North Africa feel coronavirus’ economic pain

  • Maghreb countries urged to set aside their differences if they want their responses to the crisis to succeed
  • Projected drop in overall tourism revenue across the Maghreb region for 2020 is estimated at $34.1 billion

DUBAI: The peaceful demonstrations demanding political change in Algeria have been silenced. Another fight now keeps the country preoccupied — the coronavirus threat.

On March 17, President Abdelmadjid Tebboune announced that there would be a ban on all marches in order to combat the pandemic and, on March 24, the country officially began its lockdown.

Every Friday since Feb. 22, 2019, members of the Hirak movement had marched peacefully demanding regime change, social justice and popular sovereignty.

But today, Algeria’s streets are empty. The cries for change are ghosts of the recent past.

“Now the Hirak gathers digitally to discuss the country’s future through their computers and phones,” Algerian journalist Faycal Metaoui told Arab News.

“There is still desire for change and President Tebboune has said that there will be change. But we do not know when this coronavirus will end, or in what state the country will be in after the next three to four months.”

The crisis has hit oil-dependent Algeria, which also has strong ties with China, particularly hard. The collapse of crude oil prices could send the country reeling into economic and social turmoil.  

Algeria’s lockdown has been extended three times, with the current restrictions set to expire on May 30.

The socio-economic challenges confronting Algeria are emblematic of the situation in all the Maghreb countries as they grapple with the deadly coronavirus pandemic.

The precautionary measures taken so far are bound to exact a harsh toll on the already feeble economies of North Africa.

In Morocco and Tunisia, tourism contributes 19 percent and 15.9 percent respectively to GDP.

Algeria’s energy-dominated economy has never been dependent on tourism or trade, but the country is likely to take a major economic hit due to the collapse of oil prices.

“The differences between the Maghreb countries, especially between Algeria, Morocco and Tunisia, have long been known, but faced with this global crisis the challenges are the same for all of them,” said Slim Bahrini, executive director of the Maghreb Economic Forum (MEF).

“Few COVID-19 tests and few means, coupled with an economy that is likely to worsen in the coming months or collapse after the crisis, portend unprecedented social disruption.”

One clear takeaway from the crisis, according to Bahrini, is this: “Alone, each one of these countries cannot cope with this pandemic.”

On the political front, the lockdowns across North Africa have given the ruling elites a respite from anti-government protests, particularly in Algeria. But this is temporary, say analysts.

“Many North Africans don’t believe that the Arab Spring ever ended,” said an Algerian researcher who spoke to Arab News on condition of anonymity.

“As soon as the lockdown measures are eased, people will be out on the streets again, protesting for change. The authorities will now face a new opposition. We all hope it will remain peaceful.”

For his part, Bahrini says that Maghreb countries must set aside their differences if they want to succeed in their response to the coronavirus threat.

The differences between the Maghreb countries, especially between Algeria, Morocco and Tunisia, have long been known, but faced with this global crisis the challenges are the same for all of them.

Slim Bahrini, Executive Director of the Maghreb Economic Forum (MEF)

“These countries must embark on a radical transformation of their public policies and institutional priorities to cope with the immediate crisis and its long-term impact,” he told Arab News.

“Copy-pasting measures taken by the West saves us time, but our economies will suffer the consequences of this approach in the future.

“The handling of this crisis will undoubtedly lead to a social crisis more serious than the one we know now.”

Take Morocco, the North African country with the most extensive ties to Europe.

Although it has had a relatively low rate of case numbers in comparison with its European neighbors, the effects of the country’s lockdown have crippled tourism.

The National Tourism Confederation (CNT) estimates the projected losses across Morocco for 2020 to be about $34.1 billion in overall tourism revenue and $14 billion for the hotel industry alone.

CNT predicts a 98 percent drop in tourists visiting the country, which will put 500,000 jobs and 8,500 businesses at risk.

“The only hotels that are not closed in Morocco are those that have been given freely from their owners to the government to lodge either health care workers or those in quarantine after they have finished their treatment at the hospital,” said Jalil Benabbes-Taarji, president of the National Association of Tourism Investors.




Dar Ben-Gacem, a 17th-century boutique hotel in the heart of Tunis’s medina, has teamed up with Tunisia's Red Crescent. (Supplied)

There was already high unemployment in Morocco before the pandemic hit. At the end of 2019, close to 1.1 million people were unemployed. To address the crisis, the Moroccan government has created a fund that has now reached more than $3.5 billion.

“The state has indicated that it will support vulnerable sectors and has begun compensating some of the most defenseless affected citizens,” Bahrini said.

While not officially part of the Maghreb, Egypt is one of the North African countries most vulnerable to the pandemic’s fallout.




Egypt is one of the North African countries most vulnerable to the pandemic’s fallout. (Credit: Samy Iverson)

The World Bank will provide $50 million for Egypt as an emergency response under the World Bank Group’s new Fast Track COVID-19 Facility — a global effort to help strengthen the COVID-19 response and shorten the time of recovery.

“The socio-economic turmoil will continue to be a part of the politics of the region until some really systemic change can happen,” said Timothy Kaldas, a nonresident fellow at the Tahrir Institute for Middle East Policy.

“Poverty in Egypt has increased in the past decade. Millions of people have fallen into poverty since the 2016 bailout from the IMF. The tension is there but the question we are all asking is, what is the breaking point?”

The ability to “stay home” in North Africa, like in other parts of the world and even in North America, says Kaldas, is limited to the affluent and not the working class.

“One third of the population in Egypt lives in poverty. Many are getting up each day and going to work because they don’t have a choice.”

“I don’t have much hope,” he told Arab News. “Egypt is likely to continue to muddle along with no massive breakthroughs but no complete collapse either.”

Against this grim background, Tunisia offers a glimmer of hope.

The Tunisian government has put in place a $860 million fund to support businesses, using money previously earmarked for government projects under the 2019 national budget.

However, Tunisia’s already high unemployment level, unchecked public-sector spending and anemic GDP growth rate are likely to aggravate the economic situation.

On the bright side, as the lone surviving Arab Spring democracy, Tunisia can perhaps count on the resilience and capacity-building skills of civil society groups and individuals to cope with the fallout of the coronavirus shock.

A role model in this regard is Leila Ben-Gacem, who has founded Blue Fish, a consultancy firm that promotes cultural diversity through socio-economic development, and Dar Ben-Gacem, a 17th-century boutique hotel in the heart of Tunis’s medina.

“For the first time I had to close the hotel,” the social entrepreneur told Arab News from the capital.

“Instead we collaborated with the Red Crescent, which had a long list of people who had lost their jobs and were unable to feed their families.”

Ben-Gacem has transformed her house into a kitchen, with a team preparing up to 120 meals a day for suffering medina residents.

“I’ve told myself that this is not the year for business,” she told Arab News.

“This is the year to make sure everyone around me is in good health. And when business comes back, it will come back.”

@rebeccaaproctor


Alexandria bids farewell to historic tram in latest urban upheaval

Updated 7 sec ago
Follow

Alexandria bids farewell to historic tram in latest urban upheaval

  • For over 160 years, the tram has cut through Alexandria’s heart, in an 11-kilometer stretch that includes many of the city’s schools and main universities

ALEXANDRIA, Egypt: Along Egypt’s Mediterranean coast, the oldest tram in Africa and the Middle East rumbles for a final few weeks before its removal — the latest urban upheaval Alexandrians say is hollowing out their city’s identity.
Government plans to replace the colorful streetcars on one of the city’s routes with a partially elevated light rail line have angered Alexandrians, for whom the 163-year-old track is “heritage, not just a means of transport,” local urban researcher Nahla Saleh told AFP.
Inaugurated in 1863, the tram is one of the world’s oldest, and among only a few to operate double-decker cars.
In the 19th and 20th centuries, it helped the city become a bustling metropolis, home to sizable European diasporas and a distinct cosmopolitan culture.
Now, Egyptians young and old have flocked for farewell rides, before the streetcars come to a halt in April.
As one locomotive screeches into the old El-Raml Station, commuters and visitors crane their necks out of giant windows at the historic neo-Venetian buildings overhead.
“We’re not against progress,” psychologist and writer on culture Mona Lamloum told AFP.
She and other Alexandrians agree the tramway needs work: inside the hand-calligraphied blue exterior, grime covers every surface. Underfoot, the rubber flooring is torn and strewn with trash.
“We just have bad experiences of everything they call ‘progress’ becoming synonymous with destruction,” Lamloum said.
In recent years, development projects in Egypt’s second city have razed historic parks and — most egregiously to locals — privatised and obstructed much of its Mediterranean coastline.

- Heart of Alexandria -

For over 160 years, the tram has cut through Alexandria’s heart, in an 11-kilometer stretch that includes many of the city’s schools and main universities.
The new project, led by Egyptian and international companies including Systra, Hyundai and Hitachi, promises to double speed and triple capacity.
Over half of it will be elevated — a major concern for Alexandrians who fear the tree-lined track will be replaced by eyesore concrete stilts.
Ahead of the first phase of suspension, the transport ministry said the new project was the “only solution to the city’s traffic problems.”
Locals like Saleh and Lamloum disagree, saying government plans are making the city more car-dependent and worsening traffic.
Already, because so many students rely on the tram, the city has staggered school and university hours to pick up the slack of the partial shutdown.
“Traffic’s getting worse, people can’t get anywhere, when we’ve already lost the inner-city train,” said Saleh, referring to another project under construction for the past two years, the new Alexandria Metro Line.
“Besides, it being slow was always an advantage,” she added, making it safe for “the most vulnerable in society: children and the elderly.”
Retired science teacher Hisham Abdelwahab, 64, has been riding the tram since he was a child.
“I don’t want it to go fast, I like watching the world go by,” he told AFP on a station bench.
“Our parents never thought twice about sending us out on the tram alone. Now I have a car, I just like leaving it parked to come ride the tram.”
When the next streetcar rolls in, the upper deck fills with a gaggle of schoolgirls, squabbling over who gets the window seat closest to the sea breeze.

- The old tram and the sea -

“This tram is our heritage,” Abdelwahab said, his sentiment shared by those several decades younger.
Engineering student Mahmoud Bassam, 24, has visited Alexandria just to ride the streetcar “since our tram in Cairo was removed,” he told AFP.
With a controversial slew of bridges and widened streets completed in 2020, Cairo’s historic Heliopolis neighborhood lost its last tram tracks, along with many of its trees.
“Now the same is happening here,” Bassam lamented.
Many Alexandrians are feeling the loss, intermingled with their other most treasured heritage.
“It’s like the sea. We used to go for long scenic drives on the corniche, but now we’re losing both the sea and the tram,” Abdelwahab said.
Parallel to the tramway, much of Alexandria’s iconic corniche is now hidden behind overpasses, private businesses and beachside food courts.
By 2024, over half of the city’s Mediterranean coastline had disappeared from view, according to a study by the Human and the City for Social Research center.
Four-lane highways now dominate long stretches of the seaside, where the landmark sight of fishermen perched over the waves grows ever-rarer.
For many, the waterfront that Lebanese singer Fairouz immortalized in 1961 — crooning about “the coast of Alexandria, coast of love” — is no more.
“Now all you see is concrete,” said Lamloum.
Saleh calls it “short-sighted” that the city could lose its charm to sprawling concrete.
“Tourists used to love coming to see the tram and sit by the sea, why take away both?“