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Privatization revenues in the Middle East and North Africa declined from $1.6 billion in 1997 to $1.0 billion in 1998 (see Table 4), mainly resulting from the slowing of reform programs in several countries (rather than capital markets contagion).
Morocco’s privatization program slowed considerably, raising an estimated $92 million in 1998 compared to $716 million in 1997. Unlike previous years where privatization promoted much activity on the Casablanca Stock Exchange, divestitures in 1998 relied mainly on private sales and workers (purchases). In 1998, Morocco sold additional shares to a foreign investor and workers in two oil refineries—Société Anonyme de l’Industrie de Raffinage (SAMIR) and Société Chérifienne de Pétroles (SCP)—generating approximately $40 million. It also sold additional shares in steel producer SONASID to workers, raising $3 million. Furthermore, it raised $37 million with the sale of Wafa Insurance and over $12 million with the sale of hotels to local investors.
Tunisia’s privatization program was initiated in 1987 and accelerated its pace in 1998 to raise $364 million compared to an estimated $150 million from 1990 to 1997. Key divestitures included the private sale of two cement companies—Société Les Ciments Jebel Ouest and Société Les Ciments d’Enfidha—to foreign investors, raising $361 million. It also raised over $3 million by selling a stake in telecommunication company Sotetel.
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