North Africa Weekly: August 27, 2025

From tense relations between Algeria and France to Morocco enhancing its defense capabilities, Egypt looking at Turkish fighter jets

Dear Friends & Colleagues,

From tense relations between Algeria and France to Morocco enhancing its defense capabilities, Egypt looking at Turkish fighter jets and the Haftar clan consolidating power in Libya—explore the latest developments shaping North Africa’s political, economic, and security landscape.

Hafed Al Ghwell
Senior Fellow and Director
North Africa Program

Read the North Africa Weekly on LinkedIn or join the conversation on X: @StimsonNAfrica

On Our Radar

The headlines you need to follow across North Africa.

ARAB NEWS | FROM THE DIRECTOR’S DESK

Iraq and the Shifting Tides of U.S. and EU Policy

Iraq is assertively balancing regional ties while deepening Western partnerships under Prime Minister Al-Sudani. Its strategic value lies in stabilizing the region and pursuing energy autonomy. The relationship with the U.S. is shifting from military aid to economic and diplomatic engagement.

LE POINT

Algeria: President Macron’s Shattered Dream

President Macron’s bid to reset France-Algeria relations has failed. His outreach clashed with an Algerian political system built on historical grievance. Tensions now fuel domestic politics in both nations, with diplomacy at a standstill.

BLOOMBERG

Egypt Extends Central Bank Chief Abdalla’s Rule into Fourth Year

Egypt extended Hassan Abdalla’s leadership of the central bank into a fourth year, sending a signal of continuity to foreign fixed-income investors as the North African nation emerges from its worst currency crunch in decades.

LIBYA HERALD

General Authority for Communications and Informatics Reaches Agreement with China’s Huawei to Resume Operations in Libya

Libya’s communications authority reversed its Huawei suspension just days after citing national security concerns and legal violations. The Chinese firm can now resume operations without explanation for the initial crackdown.

NEWSRAEL

Morocco Successfully Tests Israeli EXTRA Missile at Max Range

Morocco successfully tested a new precision missile with a 150km range. This follows a major deal for advanced Israeli rocket systems. The test is part of the kingdom’s accelerating program to modernize its military capabilities.

DAILY SABAH

Egypt Sets Sights on Türkiye’s Kaan Fighter Jet Program: Report

Egypt is set to join Turkey’s Kaan fighter jet program in a defense pact that could challenge Israel’s long-standing air dominance in the region. The deal aims to boost military self-sufficiency and alter the Middle East’s strategic balance.

AHRAM ONLINE

Why Is the Egyptian Pound Gaining Ground? Experts Weigh In

The Egyptian pound has gained 6% against the dollar, buoyed by strong tourism, remittances, and foreign reserves. Its continued strength depends on maintaining inflows and avoiding external shocks.

REUTERS

At Least 26 Die in Migrant Shipwreck Off Italy’s Lampedusa Island

At least 26 migrants died when their boat capsized off Italy’s Lampedusa Island. Prime Minister Meloni cited the tragedy to renew her government’s pledge to halt illegal sea crossings from Africa.

AGENZIA NOVA

Libya: House Of Representatives Appoints Khaled Haftar as Chief of Staff of Eastern Forces

Libya’s eastern-based parliament appointed Khaled Haftar, son of warlord Khalifa Haftar, as army chief of staff. This move consolidates the Haftar family’s control over the Libyan National Army.

FAAPA

Morocco’s Budget Deficit Reaches MAD 53.7 billion at End of July

Morocco’s budget deficit widened by 52% to MAD 53.7 billion by July 2025. This occurred despite a 19.2% increase in gross ordinary revenue, driven by significant growth in tax collection.

MEED

Morocco Awards $440m Airport Expansion Deals

Morocco has launched a $440 million airport expansion in Marrakech and Agadir to prepare for co-hosting the 2030 World Cup. The projects will significantly boost passenger capacity, with Marrakech’s terminal growing to handle 16 million travelers annually.

TECHPOINT

Banque Misr’s Digital Arm to Launch Egypt’s First Fully Online Bank in 2026

Egypt’s central bank approves the nation’s first fully digital bank, onebank, set to launch in 2026. The online-only institution is a subsidiary of state-owned Banque Misr. It aims to expand financial access and modernize the country’s banking sector.

GLOBAL CONSTRUCTION REVIEW

Turner & Townsend Acquires Egyptian Consultant

UK consultancy Turner & Townsend acquires Egypt’s ValueMetric Consultants to enter the local market. The deal expands its footprint in North African real estate and infrastructure. VMC’s team will integrate into the firm’s regional operations.

BUSINESS INSIDER

Top 10 African Countries with the Lowest Diesel Prices in August 2025

Libya offers Africa’s cheapest diesel at just $0.028 per liter, followed by Algeria and Egypt. These low prices significantly ease transportation and production costs continent-wide. The global average price for diesel held steady at $1.22 per liter.

Reports & Analysis on the Region

Deeper dives from experts across the region.

COMMENTARY

China Sends Houthis Dual-Use Technology to Boost Influence and Undercut the U.S.

China is pursuing a pragmatic strategy with Yemen’s Houthis, securing its Red Sea shipping interests while avoiding direct involvement. This approach provides Beijing an economic advantage and complicates U.S. security efforts, effectively leveraging regional instability to its benefit.

COMMENTARY

In Egypt, Social Media Offers the Last Public Stage — and the State Is Cracking Down

Egyptians turn to social media for visibility and income amid severe political repression. The state fears this digital arena, cracking down on content creators. Online performance replaces political engagement as a form of social struggle.

COMMENTARY

Why Morocco Sat Out the Gaza Mediation

Morocco is absent from Gaza mediation as it lacks influence over Hamas, a role now held by Egypt and Qatar. Rabat avoids a symbolic gambit that could strain its ties with the U.S. and Israel, opting to preserve its credibility for future diplomacy.

COMMENTARY

U.S. & Great Britain Move to Secure Strategic Advantage in Syria and Libya

The U.S. and U.K. are moving to block Russia’s return to Syria and Libya by lifting sanctions and securing major energy deals. This strategy aims to rebuild the economies and lock in Western strategic advantage through control of vital oil and gas sectors.

COMMENTARY

Egypt and Türkiye: A Pragmatic Turn?

Egypt and Türkiye are mending ties after a decade of hostility, driven by growing trade and shifting regional dynamics. While economic cooperation strengthens, disputes in Libya and the Eastern Mediterranean persist. Such pragmatism allows both countries to manage differences despite competing interests.

REPORT

Levels of Government and Administrative Boundaries in Libya’s Future Local Governance System

Redrawing Libya’s internal borders is a deeply political act with high stakes. The process must be inclusive, as top-down changes risk inflaming local rivalries and entrenched armed conflicts. Success depends on reflecting on-the-ground realities.

REPORT

Algeria — Freedom House Report

Score: 31/100 | Status: NOT FREE

Algeria’s political environment remains tightly managed, with recent elections reinforcing incumbent control. Opposition voices and civil liberties continue to face significant restrictions.

REPORT

Third Arab Land Conference Report

The Third Arab Land Conference served as a key forum for advancing land governance policy. Its recent report details session outcomes and recommendations across eight major themes, from conflict management to climate and technology.

REPORT

August 2025 Carbon Minefields Oil and Gas Exploration Monitor

In the past month, the largest exploration licenses were awarded to three companies—primarily in Algeria. These companies alone funneled US$1.1 billion of the US$1.8 billion total global exploration capital expenditure into newly awarded oil and gas ventures, equivalent to 63% of all exploration spending.

PHOTOBOOK

Shades of Libya: Contrasts, Hope, and Resilience

The World Bank unveiled a photobook by young Libyan photographers, showcasing the nation’s culture and resilience beyond its crises.

Tune In

Hear directly from experts, regional voices, and thought leaders shaping North Africa’s future.

VIDEO

A new roadmap for a political solution… Will it spare Libya the slippery slope of conflict?

This interview addresses the practical tools Libya needs to foster a productive societal dialogue that will influence the country’s future.

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