The diplomatic dispute brewing between Algeria and France has impacted a potential investment by the CMA CGM in the Algerian port sector. The French ship[ping company was reported to be negotiating a concession for the port of Oran through its subsidiary CMA Terminals, but the deal has been on hold as tensions rise between the two countries.

Early this week, the CEO of CMA CGM Rodolphe Saadé was scheduled to visit Algeria for a business trip. However, the visit was reportedly postponed as relations between Algeria and France further deteriorated this week. According to local media reports, Rodolphe Saadé was to be received by Algerian President Abdelmadjid Tebboune to finalize a port investment deal, which has been under negotiations for nearly a year.

The diplomatic incident emerged as Algeria protested after one of its consular staff was arrested in France. The indictment of the official was over suspicion of involvement in the kidnapping of an Algerian government critic in Paris in April 2024. This has seen the two countries expel diplomats from both sides in a tit-for-tat move.

The diplomatic dispute also appears to have taken an economic dimension. The Algerian Economic Renewal Council (CREA), the country’s largest business organization, canceled its planned visit to France next month, where it was to hold a meeting with the French employers’ association (MEDEF). CREA accused French authorities of blocking investments in Algeria.

“The cancellation of the trip follows measures taken by French authorities, who strongly pressured a French maritime transport company to abandon its trip to Algeria to finalize an investment project,” said CREA. With the ongoing tension between Algeria and France, and Saadé’s visit on hold, the negotiations for the port concession are expected to be delayed.

CMA CGM is already present in nine Algerian ports including Algiers, Annaba, Béjaïa, Skikda, and Ghazaouet. The interest in Oran is because of the port’s strategic location in the Western Mediterranean and its proximity to Europe. CMA CGM is believed to be considering a feeder shipping line between Marseille and Oran, to be operated by its subsidiary, La Méridionale.