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Analysis

Understanding Algerian logistics in the African context
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Supply chain quality, reliability and timeliness are key for any emerging market. However, with all of the attention on Africa as an investment destination in recent years, the continent’s infrastructural deficiencies, fragmented transport networks and institutional weaknesses have highlighted the importance of improving logistics and freight transport. Although freight transport in Africa is generally…

Analysis

Expansion of the highway network to reshape land transport
OBG
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In its efforts to overhaul transport infrastructure, Algeria has directed significant investment towards its road network. In addition to nearing completion on the East-West Highway, construction is also starting on another major project – the Hauts Plateaux Highway, running further south. These two routes, which will cost a combined total of around €16.2bn, will cross the country in two bands…

Analysis

Investments in port expansion help improve economic efficiencies
OBG
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Given the country’s large quantity of imported goods and the importance of hydrocarbons exports, Algeria’s economic performance is largely connected to how well its ports function – even more so as up to 95% of Algeria’s international trade passes through its port network, according to the European Commission. In recent years, several of the country’s primary and secondary ports have undergone…

Analysis

Local content preference extends to transport infrastructure sphere
OBG
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As part of the country’s ambitious infrastructure programme, the government has enacted new measures aimed at encouraging greater participation of local firms. Amendments to the 2010 public procurement law have also introduced new rules for foreign companies and outlined special procurement procedures for state-owned enterprises (SOEs). New Legislation When the current public procurement law was…

Analysis

Operators are working to expand their 3G networks
OBG
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The long-awaited 3G launch in December 2013 kicked off a period of rapid expansion in infrastructure and upgrades to service quality that have created new avenues for growth in the increasingly competitive mobile telecoms sector. The Algerian market has shown rapid take-up of new technology in the last decade, with the mobile penetration rate jumping from 1.43% in 2002 to over 100% in 2013 according…

Analysis

The sector relies on imports of key products despite rising food output
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Authorities have made food security a top priority in the last five years, considering Algeria’s growing population, rising consumption and income levels, and its exposure to volatile commodity prices. Food imports increased nearly 65% in the last five years from €4.3bn in 2009 to €7bn in 2013. Food represented 17.5% of total imports in 2013, and its value has continued to rise in 2014. Algeria’s…

Analysis

Pushing for additional private investment into the sector through the strengthening of tourism development zones
OBG
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Establishing the right type of incentives to attract private investment has commonly been one of the major challenges authorities have faced in developing the tourism sector. To solve this, the Algerian government has been strengthening a score of Tourism Investment Zones (Zone d’Expansion Touristique, ZET) across the country to try to funnel private investment into the regions. The results have…

Analysis

Efforts to align technical education with market needs
OBG
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Unemployment remains one of the most important challenges facing the government. Despite steady economic growth, bureaucracy and tight regulations for private sector operators have sometimes prevented the economy from creating enough jobs at a fast enough rate. Addressing the parliament in mid-2014, Prime Minister Abdelmalek Sellal said that the country had been able to reduce unemployment from 29.5%…

Analysis

Better prevention and infrastructure to aid the fight against cancer
OBG
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With Algeria going through a demographic as well as an epidemiologic transition over the past few decades, its disease profile has been changing accordingly. While infectious diseases were the main worry during the first decade of independence, recent years have seen the focus change towards non-communicable diseases. Cardiovascular diseases, cancer and diabetes are now the main health problems faced…

Overview

Efforts to improve social indicators and boost the private sector
OBG
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Algeria has notable geographic, demographic and cultural diversity. Its territory reaches from the Mediterranean Coast to the depths of the Sahara Desert, and its population includes a blend of Arab and Berber linguistic and cultural traditions. Economic development has been driven by oil and gas, which today still account for 30% of GDP, 60% of budget revenue and 97% of export receipts. Ample hydrocarbons…