The Diplomatic Dispute Between Algeria and France Impacts Potential Port Investment

The ongoing diplomatic dispute between Algeria and France has cast a shadow over a potential investment by the French shipping company CMA CGM in the Algerian port sector. The company, through its subsidiary CMA Terminals, had been in negotiations for a concession at the port of Oran, but the deal has hit a roadblock amidst escalating tensions between the two countries.

CEO Rodolphe Saadé of CMA CGM was slated to visit Algeria for a business trip earlier this week to finalize the port investment deal. However, the visit was postponed as relations between Algeria and France took a turn for the worse. The recent deterioration in relations stemmed from Algeria’s protest following the arrest of one of its consular staff in France on suspicion of involvement in the kidnapping of an Algerian government critic in Paris.

This diplomatic incident has not only led to the expulsion of diplomats on both sides but has also taken an economic toll. The Algerian Economic Renewal Council (CREA) canceled its planned visit to France, citing strong pressure from French authorities to hinder investments in Algeria. CREA accused French authorities of obstructing a French maritime transport company from finalizing an investment project in Algeria.

With Saadé’s visit postponed and tensions escalating, the negotiations for the port concession at Oran are expected to face delays. CMA CGM, already present in nine Algerian ports, sees Oran as strategically located in the Western Mediterranean with proximity to Europe. The company is considering a feeder shipping line between Marseille and Oran to be operated by its subsidiary, La Méridionale.

The uncertainty surrounding the investment in Oran underscores the broader impact of diplomatic disputes on economic cooperation between countries. As Algeria and France navigate through this turbulent period, the future of the port investment remains uncertain.

Photo: Habib Kaki — CC BY 3.0