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Analysis

Building on a strong base: Transport improvements will be key to the expansion of the local agro-industrial sector
OBG
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Strategically central to the larger Kabylie region, the wilaya, or province, of Béjaïa has long benefitted from the area’s agricultural richesse – a fact that is perhaps surprising given the large swathes of dense forest and mountains that cover much of the region’s interior. As a result of the difficult geography, mechanised production of cereals is limited, as is irrigated land, and…

Analysis

A homemade pill: Plans for new manufacturing units will increase local pharmaceuticals production
OBG
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Long seen as a market with untapped potential, Algeria’s pharmaceuticals sector is poised to benefit from a series of investments to expand local production capacity. “The recent slate of partnerships between domestic and foreign pharmaceuticals players is a testament to the industry’s positive outlook,” Cherif Benguerba, the country manager for Sandoz Algeria, told OBG. Additionally, a…

Analysis

Gradual liberalisation: Efforts are being made to slowly open the country’s markets
OBG
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Algeria’s trade patterns have long been quite stable, with exports relying overwhelmingly (97%) on hydrocarbons and trade with the EU accounting for roughly half of the total. Bolstered by still-high oil prices into the first half of 2013, Algeria maintains beneficial terms of trade that allow it to run a consistent surplus. Although there is limited impetus for a change in trade policy, authorities…

Analysis

New networks: Infrastructure upgrades are helping to enhance connectivity
OBG
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The $286bn that Algeria has set aside for infrastructure development under the current five-year development plan, which runs through 2015, has already had a sizable impact not only in terms of network capacity, but also on operational efficiency nationwide. New highways have been built, new tramways have begun operations, travel times are decreasing and connectivity is on the rise. One of…

Analysis

Exploring the future: The focus on finding new reserves is intensifying
OBG
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At a press conference in September 2013, Algeria’s minister of energy and mines, Youcef Yousfi, announced that hydrocarbons giant Sonatrach had made some “very important” and “extremely promising” gas finds and that the country’s natural gas reserves were “not falling, but rising”. These statements were repeated in October at a conference in London, with plans of “more than…

Analysis

In the driver’s seat: Knowledge transfer and job creation help to establish a domestic automotive cluster
OBG
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With large domestic demand, an available workforce and emerging industrial capacity, Algeria is set to restart its automotive manufacturing sector after years of being out of operation. Despite growing sales of vehicles over the past few years, the country has lacked local manufacturing facilities. However, interest in supplying the rising demand for private cars has been increasing the appetite…

Analysis

New deal: A series of changes to the Hydrocarbons Law could draw investors
OBG
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Long-pending and extensive amendments to Algeria’s 2005 Hydrocarbons Law cleared parliament in January 2013 and were passed into law shortly after. The changes were made in part to attract investment into unconventional resources and stoke interest in new bidding offers, following three rounds in recent years that produced disappointing results. HISTORY: The 2005 law was itself a sizeable…

Analysis

New avenues for growth: Personal coverage is widely expected to take off soon
OBG
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Personal insurance is much less developed in Algeria than property and casualty lines, a reversal of the situation in most Western countries – where life tends to dominate – but par for the course in emerging markets. Personal insurance premiums also fell in annual terms for the entirety of 2012, as a new law banned firms from selling both life and non-life protection (obliging those that wish…

Analysis

Powering ahead: Capacity increases are set to help the country deal with rising demand
OBG
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The biggest contract in the history of the Algerian power sector was signed in September 2013 by US multinational General Electric (GE) and Société Algérienne de la Production d’Electricité, the production subsidiary of state-owned Sonelgaz. It provided for delivery of the equivalent of around 70% of the generating capacity Algeria has in place at present and promised long-term cooperation…

Analysis

Shale and hearty: The discovery of substantial reserves could transform the industry
OBG
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In recent years, conventional reserves of fossil fuels such as oil and gas have been steadily dwindling. With renewables not yet sufficiently developed to end dependence on these resources, the world faced a stark choice: either return to more hazardous and more polluting sources such as nuclear and coal, or accept dramatically higher energy prices and constraints on economic activity. In recent…