Water stress to remain major driver of social instability, barrier to economic growth in Maghreb

• Over the 2021/2022 winter, parts of Morocco, Algeria and Tunisia witnessed the worst drought in decades. More frequent water shortages threaten economic growth and social stability.
• Maghreb countries are following similar mitigation strategies: building dams to create regional water reservoirs, supply irrigation for agriculture and make potable water available to nearby communities; opening desalination plants to convert seawater for both urban and agricultural use; and tapping into underground aquifers.
• In all three countries, years of scarce rainfall invariably drive up food imports, especially of wheat for bread production and of barley for animal feed, deepening the states’ exposure to global price fluctuations.
• Projects that raise long-term water availability — mainly dams and desalination plants — will require years to come online. Governments in Algeria, Morocco and Tunisia are hoping that generous rainfall over the coming years will reduce water rationing to a minimum and allow them sufficient time to revamp water infrastructure. Risks will remain significant over the short term.

Tunisia

• About 80% of available water in Tunisia is used by the agriculture sector. The high consumption levels required by water-intensive export crops such as lettuce, strawberries and tomatoes create resentment in towns and settlements forced to endure water cuts. In June 2022, inhabitants of Ejmil in northwestern Tunisia blocked roads in protest. Water-related protests have become increasingly regular across the country. Households nationwide were also reported to have experienced water cuts throughout the summer.
• As of late October 2022, Tunisia’s 36 large-scale dams were filled at 30% of a total capacity of 2.3 million cubic meters. Four additional dams are under construction, at a combined cost of TD935.8m ($290.4 million). The new Mellegue dam, in the northern governorate of El Kef, is set to be completed in September 2023 and has a storage capacity of 305 million cubic meters.
• In the Tunisian island of Djerba, a €70 million ($69.2 million) desalination plant was inaugurated in 2018. The 50,000 cubic meter/day capacity plant was the first of four planned desalination units across the country. The remainder will service the areas of Sousse, Sfax and Zarat.
• In December 2021, the European Bank for Reconstruction and Development (EBRD) allocated Tunisia a €49 million ($48.6 million) loan to renovate water infrastructure in 37 oases in the south of the country and support farming. Irrigated farming accounts for 35% of jobs in the governorates of Tozeur, Gabès, Gafsa and Kebili.
• Although Tunisia’s Water Strategy 2050 was set to be finalized by the end of 2022, after several delays, political and economic instability will continue to undermine government effectiveness.

Algeria

• Neighborhoods in Algeria’s capital, Algiers, endured rationed access to tap water multiple days a week over the summer of 2021. Drought and lack of investment in the aged distribution network were the main causes. As a result, protesting citizens temporarily blocked the road linking the airport to the city center. The country’s 22 most populated provinces (out of a total of 58) experienced drinking water shortages that summer.
• In response, Algerian authorities hastily inaugurated extension projects in several small-scale desalination plants around the capital in 2021. Their capacity remains limited. In early 2022, Algeria accelerated construction work on five new desalination plants in Oran, Tipaza, Boumerdes, Taref and Bejaïa.

Morocco

• In April 2022, Morocco’s 148 large-scale dams were filled to only 33.8% of capacity. The kingdom now sees drought conditions every two to three years, as opposed to every seven to 10 years in the 1990s.
• Last winter, Morocco recorded roughly 44% less rainfall than the average over the previous 30 years. Because agriculture accounts for 21% of Morocco’s GDP and 39% of employment, annual sector performance determines economic growth rates. Drought conditions reduced Morocco’s 2021/2022 cereal production by 67%. This was projected to cut agricultural GDP by 14% and reduce overall GDP growth by 1.7% to 1.8% by the end of 2022.
• Over the 2022 winter season, multiple towns and cities in Morocco, including Marrakesh, a major tourist destination, rationed tap water to deal with scarcity.
• Morocco plans to invest Dh115.4 billion ($11.5 billion) over 2020-2027 as part of its National Water Program covering the 2020-2050 period. Investment will go toward building dams, desalination plants, irrigation systems, and exploiting underground aquifers. By 2027, large-scale dams will have a total storage capacity of over 27 billion cubic meters. But according to government projections, Morocco will need to establish a storage capacity of 32 billion cubic meters to handle drought years.
• A Dh9.5 billion ($951.5 million) desalination plant is set to come online by 2027 near Casablanca, Morocco, with a capacity to produce 300 million cubic meters of drinking water annually. Additional desalination units are planned for Agadir and Safi, as well as for Laayoune and Dakhla, in the Morocco-controlled part of Western Sahara.
• In March 2022, the World Bank agreed to loan Morocco $180 million to renovate water irrigation systems, improve water governance and support farmers with advisory services.