Tobacco.org

Morocco: Smoker's Delight at Tobacco Company Sell Off  

The Moroccan economy received an important boost at the start of June, with the announcement of the privatisation of 80% of state monopoly Régie des Tabacs (RTM) to the French-Spanish multinational Altadis. The sum to be paid out - MAD14.08bn (EUR1.29bn, USD1.52bn) - brought out smiles in the Moroccan finance ministry and the business community. However, it also caused more than a few eyes to bulge in the financial community abroad. . . .

Although tobacco liberalisation has now been set in law, the market is not due to be fully liberalised until 2008. Until then, RTM (Altadis) will continue to retain a distribution monopoly in Africa's fifth largest smoking nation (14.4bn units puffed away in 2002); indeed imports, transformation, and exports will not be opened up until 2005. Altadis can therefore enjoy a good period of monopoly transition, during which time it can increase its own brand presence, as well as help RTM consolidate its domestic presence (pursuant to future increased competition) and increase its export potential.

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