Parliament adopts bill on privatization of tobacco company
Morocco, Business, 12/27/2001

The house of representatives (lower house of the Moroccan parliament) adopted on Wednesday a bill on the privatization of the Moroccan tobacco company.

The bill authorizing the transfer of this public company to the private sector was adopted by 33 votes, 10 against and 4 abstentions.

Moroccan minister of economy, finance, privatization and tourism, Fathallah Oualalou, said the government's decision to privatize the company is not due to financial reasons only but was also made after a study was conducted on the liberalization of the tobacco sector. He further explained that the association accord with the European Union provides for the liberalization of the tobacco sector over five years.

The Moroccan tobacco company was set up in 1906. In 1967, the Moroccan state recovered monopoly on tobacco and placed the company under the tutelage of the ministry of finance. The company, which holds monopoly on the purchase, production, marketing and distribution of tobacco in the country, posted sales of 8.41 billion Dirhams (nearly US$ 731.73 million) in 2000. Its distribution networks cover the whole national territory with nearly 20,000 tobacco selling shops. It operates plants in the major regions of the country and employs about 2,400 persons. Part of its production is exported to other Maghreban and African countries.

The bill adopted Wednesday also provides for the privatization of La Societe Nouvelle des Imprimeries Reunies (Sonir), a printing company, whose capital was purchased up to 73 percent by the state in 1973.

Fathallah Oualalou explained that the privatization of this printing company was justified as it operates in a competitive economic sector where the private sector is playing a key role. He added that the reasons having prompted the state to purchase 73 percent of the company's capital, namely the printing of two Moroccan dailies Maroc Soir and le Matin du Sahara, no longer exist. The two dailies were lately purchased by private BMCE group.

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