Experts weigh in on economic repercussions of Algeria's boycott of Moroccan ports

The Maritime Executive magazine, specializing in maritime industry news, shed light on the Algerian economic crisis caused by the decision to ban transactions for goods transshipped through Moroccan ports.

The hasty decision led to critical import shortages, including meats and cereals, noted the same source.

Analysts warned about the repercussions of Algeria’s decision to bypass Moroccan ports since it would detrimentally affect its economy by skyrocketing transportation costs and prolonging delivery times.

However, with increasing consumer pressure, Algeria’s Professional Association of Banks and Financial Institutions (ABEF) was compelled to issue a revised directive less than a month after the previous one, which permits direct debit transactions for essential goods, focusing on fresh produce and meat.

ABEF received a letter from the Ministry of Transport urging members to resume services and domicile all import operations, particularly for perishable products shipped before January 10, 2024, according to a letter dated January 29.

Jeune Afrique, a French magazine specializing in African issues and featuring insights from experts in Algerian affairs, published a new report commenting on the Algerian regime’s hasty decision.

It described the ban decision as a “miscalculation that failed to consider the economic ramifications for the country.”

Experts, according to the same report, observed a dual effect of Algeria’s decision, impacting both importers and the purchasing power of Algerian citizens, especially since global freight prices have experienced an upward trend due to instability in the Red Sea region.

The readjustment of the instructions implies that the previous decision was purely political and economically thoughtless, said an expert, in a statement Jeune Afrique.

He drew a parallel between these developments and the dispute between Algiers and Madrid, where the gas agreement was suspended, and the ambassador was recalled due to Spain’s shift in stance on the Moroccan Sahara issue.

However, Algeria eventually found itself compelled to retract its decision and re-establish ties with Spain, even if the latter remained steadfast in recognizing Morocco’s sovereignty over the Sahara.

Algeria’s decision to ban transactions for goods transshipped through Moroccan ports coincided with Morocco launching an initiative to grant an “Atlantic Gateway” to countries in the African coastal region.