North African companies enjoyed strong gains compared to 2020. The top three are based in Morocco and listed on the dynamic Casablanca Stock Exchange, where the MASI Free Float Index climbed 22% and the Dirham currency gained 11% against the dollar. Maroc Telecom reflected the gains as its market capitalisation rose from $11bn in 2020 to $13.5bn by March 2021, holding its place at #8, even as national GDP shrank 5.9% over the calendar year, with economic damage from lower tourism and drought in some areas as well as sudden slowdowns in its main export markets in Europe. Exports of automotive parts and phosphates started to pick up again in the third quarter of 2020 and the economy is forecast to bounce back strongly with 4.5% growth in 2021 and 3.2% in 2022. Tackling high unemployment, especially for young people, remains a challenge. Covid-19 had a severe impact on Egypt but the country managed to keep economic growth at 3.6% in 2020 and the momentum will continue with forecast 3% growth in 2021 and 4.9% in 2022.
The bank of Egypt cut the overnight lending rate in March, September and November 2020 to end at 9.25% in a successful bid to stimulate the economy. Tourism is not expected to return to pre-pandemic levels for some years. The top Egyptian company on the list is Commercial International Bank, down from #18 in 2020 to #30 as its market capitalisation slid back a little. The Egyptian pound stayed stable against the dollar. Tourism-dependent Tunisia was hammered, with an 8.8% economic contraction overall and relatively anaemic 2% growth in 2021. Covid-19 hit hard and there were sharp falls in investment and exports. However, the top Tunisian company on the list, Société de Fabrication des Boissons de Tunisie (SFBT), gained dramatically in market capitalisation and climbed from #80 to #67. North Africa does well in terms of diversified economies, and this is reflected in the biggest companies which include telcos, banks, cement makers, energy and consumer companies and private utilities.