The Moroccan government is considering selling a portion of its 30 percent share in Maroc Telecom, the Egypt's al-Ahram reported Saturday. The sale of an 8 percent stake had been discussed before, but the government decided to keep its shares. An informed anonymous source told Reuters that the sale is “back on the government's agenda.” The stake is worth 10.1 billion dirhams, or $1.3 billion. A representative of the Moroccan finance and economy ministry declined to comment to Reuters. The French telecom company Vivendi currently controls Maroc telecom with a 53 percent share. Maroc Telecom also owns 51 percent of shares in Mauritel, Mautirania's main carrier. The sale is likely related to increased budget pressures in the face of the February 20 protests. In February, Finance and Economy Minister Salaheddine Mezouar told Reuters that asset sales would be needed to preserve the target deficit—3.5 percent—for the 2011 budget. The Moroccan budget is struggling to accommodate rising food and commodity prices, which made up 35 billion dirhams in 2010, or $4.4 billion. As protests raged the government may have to increase the previously allocated allotment for food and commodity subsidies to 45 billion Dirhams, or 5.6 billion USD. According to Vivendi's website, 95 percent of Maroc Telecom's mobile services are prepaid. The company also provides 1.2 million fixed landlines. BM
