Arab countries of North Africa feel coronavirus’ economic pain

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


Israel to abolish free trade deal with Turkiye in retaliation

Updated 17 May 2024
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Israel to abolish free trade deal with Turkiye in retaliation

  • Earlier this month, Turkiye said it was stopping exports to Israel during the duration of the Israel-Hamas war

JERUSALEM: Israeli Finance Minister Bezalel Smotrich on Thursday said Israel would abolish its free trade agreement with Turkiye and also impose a 100 percent tariff on other imports from Turkiye in retaliation for Turkish President Tayyip Erdogan’s decision to halt exports to Israel.
The plan, he said, would be submitted to the cabinet for approval.
Earlier this month, Turkiye said it was stopping exports to Israel during the duration of the Israel-Hamas war, citing “worsening humanitarian tragedy” in the Palestinian territories. But the Turkish Trade Ministry has said that companies have three months to fulfil existing orders via third countries.
“His (Erdogan’s) announcement of the stoppage of imports to Israel constitutes a declaration of an economic boycott and a serious violation of international trade agreements to which Turkiye has committed,” Smotrich said in a statement.
He noted that Israel’s actions would only last as long as Erdogan remained in power.
“If at the end of Erdogan’s term the citizens of Turkiye elect a leader who is sane and not a hater of Israel, it would be possible to return the trade route with Turkiye,” Smotrich said.
Under Smotrich’s plan, all the reduced customs rates applicable to goods imported from Turkiye to Israel according to an agreement to the free trade deal would be abolished. At the same time, a duty would be imposed on any product imported from Turkiye to Israel at a rate of 100 percent of the value of the goods in addition to the existing duty rate.
The finance, economy and foreign ministries, the statement said, would also take steps to strengthen Israel’s manufacturing while diversifying sources of import to reduce the dependency on Turkiye.
Israel’s Manufacturers’ Association called Smotrich’s plan “an appropriate response” for not allowing Erdogan to damage the economy without a response.


Measured support for end of UN mission in Iraq

Updated 17 May 2024
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Measured support for end of UN mission in Iraq

UNITED NATIONS: Several members of the UN Security Council, including Russia and China, on Thursday backed Baghdad’s request for the world body’s political mission in Iraq to shut down by next year — but Washington did not immediately offer its support.
Last week, in a letter to the council, Iraqi Prime Minister Mohamed Shia Al-Sudani called for the United Nations Assistance Mission for Iraq (UNAMI), which has been operational since 2003, to end by December 31, 2025.
Iraq’s deputy UN envoy Abbas Kadhom Obaid Al-Fatlawi reiterated the request before the council on Thursday, saying: “The mission has achieved its goals.”
Russian envoy Vasily Nebenzia shared that view, saying “Iraqis are ready to take responsibility for the political future of their country.”
“The remaining problems should not become an excuse for UNAMI to stay in the country indefinitely,” he added.
Within the framework of the mission’s annual renewal, due at the end of May, the council should “propose a plan... in order to ensure its gradual drawdown and smooth transition toward an ultimate withdrawal,” noted China’s deputy UN envoy Geng Shuang.
Given that UN missions can only operate with the host nation’s consent, Britain and France also voiced support for a transition in the partnership between Iraq and the UN.
The US was more vague, with ambassador Linda Thomas-Greenfield saying UNAMI still had “important work to do,” and making no mention of Baghdad’s request.
She emphasized the mission’s key role on several important political issues, such as support for organizing elections and promoting human rights, even though Iraq has clearly asked that the mission focus more squarely on economic issues.
In an evaluation requested by the council, German diplomat Volker Perthes said in March that UNAMI, which had more than 700 staff as of late 2023, “in its present form, appears too big.”
Perthes called on the mission to “begin to transition its tasks to national institutions and the United Nations country team in a responsible, orderly and gradual manner within an agreed time frame.”
Without commenting on Baghdad’s request, mission chief Jeanine Hennis-Plasschaert painted a picture of an Iraq that “looks different to the country to which UNAMI was first deployed some 20 years ago.”
“Today we are, so to speak, witnessing an Iraq on the rise,” she said, while noting multiple challenges yet unresolved, such as corruption and armed groups operating outside state control.
But she added: “I do believe it is high time to judge the country on progress made, and to turn the page on the darker images of Iraq’s past.”


ICRC officials to meet UK Foreign Office over plan for Palestinian detainees

Updated 17 May 2024
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ICRC officials to meet UK Foreign Office over plan for Palestinian detainees

  • David Cameron reportedly negotiated deal with Israel’s government to allow two British legal observers and Israeli judge to visit some prisoners

LONDON: Officials from the International Committee of the Red Cross will hold talks with the UK Foreign Office over concerns about British plans to visit Palestinian detainees in Israeli jails.

Foreign Secretary David Cameron has reportedly negotiated a deal with Israel’s government to allow two British legal observers and an Israeli judge to visit some prisoners being held in Israeli prisons amid reports of “inhumane treatment,” The Guardian reported on Thursday.

In an interview with the BBC at the weekend, Cameron said he had spoken to Israeli Prime Minister Benjamin Netanyahu about the issue.

“It’s not all bleak ... I said it (the lack of access to detainees) was not good enough, that we needed to have a proper independent system for inspecting and regulating, and the Israelis have announced they are now doing that,” he said.

Netanyahu’s government has blocked ICRC staff from having any access to Palestinian detainees since the Hamas-led attack on Oct. 7. It has said the block will remain until Hamas allows access to Israeli hostages taken during the attack.

Critics say this stance could constitute a breach of the Geneva Conventions, with the ICRC having made repeated requests to both sides in the conflict to allow access to all those detained, as set out in the conventions.

Observers have also raised concerns that the UK plan will “weaken the rule of law” and could set a “dangerous precedent” for how detainees are treated in other conflict zones, The Guardian report added.

The ICRC’s director for the Middle East region, Fabrizio Carboni, is in London to hold talks with Foreign Office officials.

In a statement to The Guardian, the aid organization said Palestinian detainees must be treated as protected persons with access to the ICRC, as proscribed under the Geneva rules.

The statement added: “We have seen the reports of a government of Israel decision to allow observers to visit some places of detention. The ICRC remains hopeful that suitable steps are taken that could protect the health and welfare of detainees, which remains paramount. We reiterate our readiness to resume our mandated detention activities.”

Arab News columnist and director of the Council for Arab-British Understanding, Chris Doyle, said the Foreign Office plan risked establishing a system that bypassed the ICRC and internationally accepted regulations.

“There is no transparency about Cameron’s alternative … I very much doubt that two Foreign Office-appointed lawyers in the company of a judge from the occupying power are going to have the expertise of the ICRC, but will instead be taken around sanitised prisons,” he said.

“What has happened to the thousands of Palestinians taken from Gaza to Israel is a huge issue. (Neither) we nor their families know where they are, whether they are combatants or children, or why in some cases they are being stripped to their underpants. We have heard nothing from the UK government about this,” he added.

During a week-long truce between Hamas and Israeli forces in November, the ICRC played an active role in facilitating the swap of 105 Israeli hostages held by Hamas and 240 Palestinian prisoners from Israeli jails.


Residents cower as fighting picks up in Sudan’s Al-Fashir

Updated 16 May 2024
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Residents cower as fighting picks up in Sudan’s Al-Fashir

CAIRO/DUBAI: Residents are fleeing missile fire and sheltering without food and water amid escalating fighting in the Sudanese city of Al-Fashir, witnesses and aid workers said, adding to fears of an all-out battle.
The city is the Sudanese army’s last stronghold in the western Darfur region. Its capture would be a major boost for the rival Rapid Support Forces (RSF) as regional and international powers try to push the sides to negotiate an end to a 13-month war.
Locals and aid workers fear the clashes could also lead to a new round of bloodletting after ethnically-driven violence blamed on the RSF and its allies elsewhere in Darfur last year.
Many of Al-Fashir’s 1.6 million residents arrived during the violence between Arabs and non-Arabs that killed hundreds of thousands of people in the early-2000s. The RSF’s origins lie in the Arab janjaweed militias accused of ethnic cleansing and genocide then.
In recent weeks the RSF has almost surrounded Al-Fashir, capital of North Darfur state, while soldiers from the army and allied non-Arab armed groups fill the city.
In a sign of mounting ethnic tensions, Mini Minnawi, head of one of the groups, said on X he had made a wide call for fighters to come and defend Al-Fashir, in response to what he said was a similar call by the RSF.
Al-Fashir residents report snipers, stray missiles and army air strikes causing fires in the east and north of the city. Many civilians have taken up arms.
“The situation in the city has been difficult the past few days. Missiles from both sides are falling inside neighborhoods and homes, and getting to hospitals is dangerous,” said 38-year-old resident Hussein Adam.
Medical aid agency MSF said on Thursday that the city’s South Hospital had seen 489 casualties since May 10, including 64 deaths, though it said the real toll was far higher.
Another hospital it supports, which saw 27 people killed last weekend, was forced to shut down after an army air strike 50 meters away, MSF said.
The RSF and army blame each other for the violence.
On Wednesday, the United States imposed sanctions on two top RSF commanders, including the force’s head of operations, for the attacks on Al-Fashir.
“We are prepared to take further action against those who actively escalate this war – including any offensive actions on El Fasher – create barriers to humanitarian access, or commit atrocities,” US ambassador to the United Nations Linda Thomas-Greenfield posted on X.
Experts have raised warnings of impending famine in the displacement camps that dot Al-Fashir. The city also suffers from water shortages, network outages, and high prices.
In one of those camps, Abu Shouk in the north of the city, nine people were killed by stray missiles, camp leaders said on Sunday.
Residents say displaced people from eastern neighborhoods are sheltering under trees and in open squares.
“Most families have moved west, women and children with nothing to eat or drink,” said resident Mohamed Jamal, a volunteer with the local emergency response room.
The army has so far insisted that international aid delivered via Chad for other parts of Darfur pass through Al-Fashir, something that the escalating violence prevents.
Carl Skau, Chief Operating Officer of the World Food Programme, said the agency had trucks ready in the Chadian border town of Tina, but they needed to be able to move soon.
“The window is closing, the rains are coming and we need action in the next couple of weeks,” he told Reuters after a trip to Port Sudan where he tried to negotiate with the army for better access this week.
The UN’s World Food Programme expects more people are being driven to the brink of starvation in other parts of Sudan worst affected by the war including the capital Khartoum, El Gezira state and the Kordofan regions.
“We really need to step up a concerted effort to avoid an even worse catastrophe,” Skau said.


US military says aid pier anchored to Gaza beach

Updated 16 May 2024
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US military says aid pier anchored to Gaza beach

  • The US Central Command said the pier was “successfully affixed to the beach in Gaza” with around 500 tons of aid expected to enter the Palestinian territory in the coming days
  • “It’s a pretty substantial amount, and it’s spread out over multiple ships right now,” Vice Admiral Brad Cooper, deputy CENTCOM commander, told reporters

JERUSALEM: US troops on Thursday anchored a long-awaited temporary pier aimed at ramping up emergency aid to a beach in the war-ravaged Gaza Strip, the US military and Israel said.
The US Central Command said the pier was “successfully affixed to the beach in Gaza” with around 500 tons of aid expected to enter the Palestinian territory in the coming days.
“It’s a pretty substantial amount, and it’s spread out over multiple ships right now,” Vice Admiral Brad Cooper, deputy CENTCOM commander, told reporters in Washington.
Israel’s military also said in a statement that the connection was “successfully completed.”
But Farhan Haq, a spokesman for UN Secretary-General Antonio Guterres, said negotiations remained ongoing on distribution of the aid — particularly on the safety of workers.
“We are finalizing our operational plans to make sure that we’re ready to handle it once the floating dock is properly functioning, while ensuring the safety of our staff,” he said.
The Gaza war has been devastating for aid workers. The UN agency for Palestinian refugees, UNRWA, which Israel accuses of bias, has alone lost 188 Gaza staff, according to UN figures.
Asked about the concerns, State Department spokesman Vedant Patel said the United States was working with the United Nations on practicalities but added: “From our point of view, we believe that this is ready to go and for aid to start flowing as soon as possible.”
US President Joe Biden announced the emergency pier in March to address the humanitarian crisis in Gaza, where the United Nations has warned of famine with virtually the entire population of 2.4 million displaced by the Israeli military action in response to the October 7 Hamas attack.
Built at a cost of at least $320 million, the project is extraordinary in that such massive humanitarian efforts by the United States are usually in response to actions by hostile countries, not a US ally.
The humanitarian assistance is being screened in Cyprus and loaded by truck. Once on land, it will “move quickly,” being offloaded from the coast into Gaza within hours, Cooper said, adding that “thousands of tons of aid are in the pipeline.”
He said that around 1,000 US soldiers and sailors were involved in the operation but that they would not take part in delivery, which will be led by the UN.
The war began after Hamas’s October 7 attack on southern Israel, which resulted in the deaths of more than 1,170 people, mostly civilians, according to an AFP tally of Israeli official figures.
Israel’s military retaliation has killed at least 35,272 people, also mostly civilians, according to the health ministry in the Hamas-run Gaza Strip.
The UN has argued that opening up land crossing points and allowing more trucks convoys into Gaza is the only way to stem the spiralling humanitarian crisis.
But the primary crossing into Gaza, on the territory’s border with Egypt, has been closed for days.
Israeli troops took over the Palestinian side of the crossing last week as the military threatened a wider assault on the southern city, defying warnings from the United States and others over the fate of some 1.4 million civilians who had been sheltering there.
“Of course we’re thankful to the US for all the work they’ve done in creating the floating dock. However, getting aid to people in need into and across Gaza cannot and should not depend on a floating dock far from where needs are most acute,” Haq said.
Cyprus, the Mediterranean island nation that is the departure point for aid on the planned maritime corridor, said US ship James A. Loux left Wednesday, carrying relief supplies and technical equipment.
Government spokesman Konstantinos Letymbiotis said that “new departures are expected, transporting humanitarian aid including food items, medical supplies, hygiene and temporary shelter.”
Britain, meanwhile, said its initial contribution of nearly 100 tons of “shelter coverage kits” figured in the first shipment.
The pier will begin with facilitating the delivery of around 90 truckloads of international aid into Gaza each day, before volumes are scaled up to 150 truckloads daily, a British statement said.