Analysis

Finding the funds: A rigid investment climate complicates development
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Among the important benefits that have made Algeria keen to attract foreign direct investment (FDI) is access to foreign technology and know-how to boost local industry. However, current FDI levels remain low, stymied in part by perceptions that it is difficult to do business in Algeria. There have been calls for changes to measures introduced between 2008 and 2010 that limit the activities of…

Analysis

Laying down the law: New hydrocarbons legislation is expected to provide a much-needed tax break
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After three rather disappointing bidding rounds and increasingly lacklustre interest from international oil and gas companies, Algeria’s minister of energy and mines, Youcef Yousfi, declared towards the end of 2011 that the country needed to review its hydrocarbons legislation. Algeria’s Council of Ministers approved changes to its 2005 Hydrocarbons Law on September 17, 2012. The amendments…

Analysis

Docking stations: Port developments will help boost capacity and handling efficiency
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While Algeria has made significant improvements to key elements of its transport infrastructure, a rise in international cargo flows in recent years has put pressure on the country’s ports. Despite experiencing a minor slowdown in maritime traffic in 2008, national port traffic increased from 117.9m tonnes in 2010 to 118.1m tonnes in 2011, according to M’hamed Boudouma, the CEO of the Laboratory…

Analysis

Ratings system: Increased transparency and accountability should encourage lending
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Long-awaited plans to set up a ratings agency to gauge stability levels in Algeria’s banks seem to be back on track, with the process for selecting a monitoring system now gathering pace. The launch of the new ratings system for the nation’s banks has the potential to boost confidence in the sector, while paving the way for increased lending in line with the country’s bid to diversify its…

Analysis

Getting around: Investments in urban public transport
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A key focus of spending under the government’s 2010-14 five-year development plan has been the modernisation and development of Algeria’s public transport facilities. Among other projects, the state plans to invest more than AD447bn (€4.3bn) in the construction of tramway systems for 14 cities nationwide, with the aim of emulating the success of the country’s only functioning tramway, located…

Analysis

Homeward bound: Increasing the supply of affordable housing is a crucial concern
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The housing shortage in Algeria has posed a key challenge to the authority of the government, igniting protests in cities across the country and highlighting stark disparities. Despite steady GDP growth, an increasing number of Algerians lack access to affordable housing, while many are left to take their chances in the informal housing sector. High demand and a scarce supply of housing have culminated…

Analysis

Powering up: Nuclear energy has attracted interest as a potential alternative
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Since 2006 Algeria has shown growing interest in using nuclear power as an alternative means of generating energy, and recent power shortages have provided the impetus plans to realise this. “We plan to generate 13% of electricity from nuclear energy by the year 2050,” Youcef Yousfi, minister of energy and mines, told OBG. NUCLEAR INSTALLATIONS: Currently Algeria does not have a nuclear…

Analysis

Sparking interest: Expanding access to electricity and increasing capacity through foreign partnerships
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Due to recent power cuts during the summer of 2012, Algeria is accelerating plans to expand its capacity. According to statements made by the minister of energy and mines, Youcef Yousfi, the government is planning to increase output from the current 11,000 MW to 19,000 MW within the next five years, almost doubling capacity. Previously, the ministry had projected that the planned increase of 4000…

Analysis

On the road again: Rural areas look set to see upgrades
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The government has begun turning its attention to the next phase of its programme to strengthen the country’s transport infrastructure – the improvement of urban and provincial road networks nationwide to ease congestion and improve end-user distribution services. Benefitting from an AD60bn (€610m) outlay in the current 2010-14 national investment plan, Algeria has outlined an ambitious infrastructure…

Analysis

Testing the waters: Desalination and improvements to transport infrastructure are key to adequate water supply
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As a predominately arid and semi-arid country, Algeria must carefully manage its limited water resources. In the past decade, it has witnessed recurring water shortages due to increasing demand from growing industries and the populace, as well as the effects of drought and pollution. For the past 30 years, Algeria’s rainfall levels have been below average. This is compounded by the issue of distribution,…