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Al Qaeda Gets Sophisticated with Intelligence Gathering, While Algeria Maintains Hard Stance Against Militant Salafists

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Al Qaeda Gets Sophisticated with Intelligence Gathering, While Algeria Maintains Hard Stance Against Militant Salafists ANALYSIS Issue 233 July 12, 2013 July 2013 ISSN: 1097-884 Boston, MA, USA Sahara | Sahel: Mailing Address: 740 SE Greenville Blvd Al Qaeda Gets Ste. 400-108 #1080 Greenville, NC 27858, USA Sophisticated with +508-981-6937 North-Africa.com Intelligence Gathering INSIDE THIS ISSUE From the Editor : Persistent Insecurity in North Africa, Wherever You Look Tens of Thousands of Troops and Unmanned Drones Working to Secure the Sahel/Sahara Egypt on the Brink of Economic Collapse, GCC [Minus Qatar] to the Rescue Sonelgaz Rocked by Corruption Scandal, Reports US$ 1 Billion Losses Morocco: The Cost of Running Government And More The North Africa Journal Issue 233 . July 12, 2013 Contents FROM THE EDITOR 4 Persistent Insecurity in North Africa, Wherever You Look ............................................................ 4 ENERGY & MINING 12 North Africa Oil and Gas Industry Review ...........................................................................................12 SECURITY & POLITICS 16 Tens of Thousands of Troops and Unmanned Drones Working to Secure the Sahel/Sahara ...................................................................................................................................................16 Back from the Dead: Belmokhtar Launches Daring Attacks in the Sahel, Warns of More to Come ...................................................................................................................................................................21 Al Qaeda Gets Sophisticated with Intelligence Gathering, While Algeria Maintains Hard Stance Against Militant Salafists ..............................................................................................................23 US Troops Deployed in the Amchach Military Base in Northern Mali ......................................26 Tunisia's Islamist Party Ennahda: United No More .........................................................................27 INDUSTRIES & MARKETS 29 Michelin Algeria Shuts Down Plant , Hundreds of Workers with no Jobs ...............................29 Algeria's Healthcare and Drugs Market: Inneficient and Addicted to Foreign Imports ....30 New Tunisia-Europe Submarine Cable in the Offing .......................................................................38 Market Watch: Rail and Urban Transport in Algeria .......................................................................39 Market Monitor: Tough Times for the Moroccan Real Estate Market .....................................40 CORPORATE AFFAIRS 41 Algeria Utility Monopoly Sonelgaz Rocked by Corruption Scandal, Reports US$ 1 Billion Losses .................................................................................................................................................................41 ECONOMY & TRADE 46 Egypt on the Brink of Economic Collapse, GCC [Minus Qatar] to the Rescue ........................46 Weakness Persists in the Moroccan Economy ...................................................................................50 Morocco: The Cost of Running Government .......................................................................................51 Tunisian Lawmakers Seek New Investment Code as Investors Are Unwilling to Commit54 While Tunisian Economy Faces Slow Growth, Investments in Electrical Industry Expand in Double Digits ..............................................................................................................................................55 US+1-508-981-6937 • Fax+1-413-383-9817 • www.north-africa.com • Page 2 The North Africa Journal Issue 233 . July 12, 2013 AGRICULTURE 57 Tunisian Farmers Battling Fire Blight and Poor Grain Harvest ..................................................57 Copyright Notice 58 Contact Information 58 Subscription Information 59 BROUGHT TO YOU BY Visit http://bit.ly/18qV98 for fresh career opportunities US+1-508-981-6937 • Fax+1-413-383-9817 • www.north-africa.com • Page 3 The North Africa Journal Issue 233 . July 12, 2013 FROM THE EDITOR Persistent Insecurity in North Africa, Wherever You Look As we have warned for months and even years, the ongoing, and easily predictable political evolution of North Africa and the Sahel was inevitably leading to a substantial security erosion. Chaos is dangerously settling in and it will take decades, billions of dollars, and substantial efforts to fix the multi-faceted problems the region is facing. While Egypt has descended into chaos, the political landscape in Libya is no better, and dominated by a low- intensity civil war. Towns from Kufra to Benghazi are witnessing heightened tension. In Tunisia, there is now an open conflict between secularists and Islamists on one hand, and the Islamist Ennahda party in power against the ultra-conservatives and often violent Salafists. The secular movement is fighting back but is facing huge resistance from the conservatives, with pro-democracy activists, from the feminists to artists being sent to prison. In Algeria, the health of the President, who is severely ill has created a major political vacuum with the future of the country in question and fear of instability looming. Despite the Prime Minister acting as a caretaker of sort, big political decisions are frozen or made through a process that observers call unconstitutional. That country continues to struggle with bad politicians and corporate leaders, with a few having been caught practicing corruption and abuse of power. Further south, the French intervention in Mali did not necessarily solve the crisis in the Sahelian nation as more problems are emerging both within Mali and outside of it. Terrorist leader Mokhtar Belmokhtar is alive and busy harassing the French in the region. Although Morocco remains seemingly a beacon of stability, with the turmoil surrounding it, the Kingdom will US+1-508-981-6937 • Fax+1-413-383-9817 • www.north-africa.com • Page 4 The North Africa Journal Issue 233 . July 12, 2013 have to be extra vigilant not to fall victim of the instability in the region. Domestically however, the governing coalition headed by the Islamists of the PJD is struggling to keep the economy afloat. Meanwhile, at the top of governance in Morocco, a political crisis has been brewing for months pitting parties that have been in the governing coalition against one another. The latest from Rabat is the withdrawal of the secular but conservative Istiqlal party from the government. Many voices are calling on the King to intervene to halt the crisis, but King Mohamed VI is showing restrain, although some are suggesting that the monarchy is behind the Istiqlal's decision to quit the government in an effort to discredit the Islamists in government. Here's a brief roundup of the latest: Libya : While Libya no longer has a dictator, and freedom from the Gaddafi clan has been won with countless lives, the transition to a stable nation, let alone a prosperous one, is turning out to be more difficult to reach. Toppling the dictator was the easiest part of a long process of stabilization that could take decades to achieve. Unwilling to consider a Federal and decentralized governance model, and without the typical established institutions in the executive, legislative, judiciary and law enforcement worlds to help pilot the transition, Libya finds itself in a very complex web of difficulties and challenges. Today, while the country has some financial resources to deal with the physicality of the reconstruction, lack of political institutions and cohesion forces the country to face heightened insecurity in a multi-faceted crisis, magnified by the fact that Libya and its Western partners insist on controlling the nation from Tripoli. The net picture of the collection of events does suggest a country at war with itself and only creative politics and courageous decisions will save that nation. Security issues continue to dominate the Libyan landscape, and that has affected the perceptions and stances of many stakeholders in the broad Libyan economic and political life. So much so that it took a great deal of lobbying to convince a reluctant world football association FIFA to allow Libya to host soccer games in its own stadiums. Libya, a country where soccer US+1-508-981-6937 • Fax+1-413-383-9817 • www.north-africa.com • Page 5 The North Africa Journal Issue 233 . July 12, 2013 rules, has been waiting for a change in position, but FIFA has long resisted and for a while it remained adamant to keep Libya out of the football circuits, considering the heightened risk factor. A change of heart happened in the second half of April but that does not mean the security risk is any lesser. While FIFA decided to ease its stance, many in the business community remain entrenched in their perception of the high risk in Libya. An example of such reluctance is French oil subcontractor Ponticelli which decided to leave Libya for the time being due to "lack of security" and the risk its employees face. The company ordered its 40 workers based on an oil field in the Sirte Basin to leave Libya at the end of March, essentially abandoning what would have been a lucrative contract with Mabrouk oil company. The departure of Ponticelli may not have hit the front pages of the global media because the company is not so known from the general public. But when oil giant BP decides to scale down its presence, the news gets a lot of attention. The company has decided to withdraw its foreign employees, given the warnings from the British government on the state of security in the country. Although the
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