Going strong: Page 22

The largest economy in the Maghreb, Algeria is also the region’s wealthiest country in terms of purchasing power parity per capita. Hydrocarbons are the mainstay of economic activity; however, amid slowing production and exports, as well as the sharp drop in oil prices since mid-2014, the government is taking a range of measures to encourage investment in other sectors, with a particular focus on industry, agriculture and tourism.

6 10 12 15 18 19 20 22 30 31 32 33 34 35 37 Algeria in figures Desert rose: The Saharan country is continuing to move ahead into the future Interview: President Abdelaziz Bouteflika A stable platform: Algeria has remained on track despite regional turbulence Regional ties: The government is pushing for closer regional cooperation Interview: Greg Hands, UK Minister of State for International Trade Interview: Akinwumi Adesina, President, African Development Bank Going strong: The economy is on stable footing and demonstrating great potential In the balance: Deficits are becoming a more common occurrence Pulling in capital: A new investment framework Interview: Ali Haddad, President, Forum des Chefs d’Entreprise Work in progress: Algeria is looking to capital markets to boost liquidity Interview: Zied Ladhari, Tunisian Minister of Industry New priorities: Economic diversification and lower oil prices are leading to a redirection of fiscal policy Interview: Jaime García-Legaz, Former Secretary of State for Trade As the government attempts to curb the impact of the global downturn in oil prices and sustain economic growth, boosting hydrocarbons production to make up for lower prices is a key priority. Efforts to make the market more attractive to foreign investors include liberalising the renewables sector, developing clear regulations for independent power productions and reducing red tape.

40 47 48 49 50 51 54 61 62 63 64 65 69 70 71 72 73 74 75 76 Page 40 Ready for more: Despite the current climate of low oil prices, the country is investing in its vast untapped potential Viewpoint: Noureddine Boutarfa, Minister of Energy Interview: Akli Brihi, Maghreb Cluster President, Schneider Electric Fixing the fields: Older oilfields are undergoing major renovations Come to the light: Solar projects expand Interview: Amine Mazouzi, CEO, Sonatrach Moving forward: The sector is ready to tackle upcoming economic challenges Ebb and flow: New measures are in place to enhance liquidity management Up to bat: Macroeconomic challenges may allow the central bank to take greater control over national finances Interview: Mohamed Loukal, Governor, Bank of Algeria Interview: Adnan Ahmed Yousif, President and CEO, Al Baraka Banking Group On the go: Lower oil prices have led to renewed urgency to improve the country’s exchanges and diversify the economy Share analysis & company data provided by Tell Markets Private equity: A challenging start to what is expected to be a promising journey Biopharm: Pharmaceuticals SAIDAL: Pharmaceuticals Alliance Assurances: Insurance NCA Rouiba: Food processing EGH El Aurassi: Hospitality Interview: Yazid Benmouhoub, General Manager, Algiers Stock Market Interview: Mohammed Khelfaoui, Managing Director, Tell Markets Capitalising on the country’s extensive local natural resources has always been a priority. As part of the government’s plan to move the economy away from reliance on oil and gas, 50 new industrial zones are being planned and developed. An emphasis is also being placed on developing domestic production while reducing industrial imports.

Page 84 77 81 84 91 93 Encouraging coverage: Improved regulation and services should help the segment expand while maintaining growth Interview: Mokhtar Naouri, CEO, CASH Insurance Core activities: Sector development is supported by incentives and government efforts to increase local production Gearing up: The country has set its sights on higher fertiliser production Interview: Ali Boumediene, CEO, Bomare Algeria’s construction sector grew by 5.3% in 2015, aided by a number of substantial ring-fenced investments in infrastructure and housing, despite the recent fall in government revenues brought about by the drop in hydrocarbons prices. Accounting for 10.2% of GDP, the sector is expected to continue to offer a number of growth opportunities across key segments including housing, infrastructure and industry. Meanwhile, a growing number of property developers are vigorously competing in several areas of the real estate market, and seeking to tap into the strong demand for property in the residential, retail, hospitality and tourism segments, among others.

Page 100 94 98 100 105 107 112 121 122 123 125 126 128 133 134 On the cusp: Thanks to abundant, underexplored mineral deposits, the country’s mining output is set to soar Interview: Reda Hechelaf, CEO, SOPI Pressing ahead: The sector continues to grow, with an emphasis on improving housing supply and infrastructure Interview: Boudjema Talai, Minister of Public Works and Transport Focal point: Addressing the housing shortage remains a key area of activity, while retail and tourism are set to see more investment On track: Major improvements expected across all segments as new projects and extensions are rolled out Interview: Michael Hamelink, CEO, Aigle Azur Interview: Rachid Ghezlaoui, CEO, Transrafa Working together: The role of the private sector in the construction and management of transport infrastructure is expanding Improving efficiency: Dry ports give way to logistics zones as efforts to reduce congestion at maritime gateways pay off Building blocks: Infrastructure upgrades and expansions aim to improve the country’s position as an air transport hub Gathering speed: New wireless and fibre-optic infrastructure boosts internet connectivity, and a new law promises to shake up the sector No strings attached: Connection speeds receive a boost from 4G wireless broadband as the sector expands rapidly Wired in: Investment in technology parks and start-ups signal ICT’s ongoing importance to the economy 137 138 145 146 150 151 152 153 156 164 165 166 168 172 173 178 181 186 189 194 196 199 200 Interview: Mouatassem Boudiaf, Deputy Minister for Digital Economy and Financial System Modernisation Interview: Nunzio Mirtillo, Head of the Mediterranean Region, Ericsson Looking east: The wilaya of Sétif is developing as a key industrial centre Getting to work: Investment and new strategies aimed at boosting production Coming together: A move towards production clusters is unlocking potential Interview: Abdesselam Chelghoum, Minister of Agriculture, Rural Development and Fisheries Interview: David Blumberg, CEO, Blumberg Grain Middle East & Africa Private investment drive: A new agricultural investment strategy has helped spark a raft of recent deals with foreign investors A coordinated approach: While Algeria holds clear potential as a tourist destination, it faces challenges in relaunching the sector Interview: Simon Stamper, Director of Operations, Africa, IHG Evolving needs: As the tourism sector grows, hospitality training has become vital Centres of focus: Tourism Investment Zones are receiving renewed attention Funding the future: Strong backing demonstrates the government’s commitment to raising the quality of education offerings Interview: John Chrosniak, President, DuPont In surgery: New methods are being piloted as the sector looks to adapt Interview: Dow R Wilson, CEO, Varian Medical Systems Mazar’s Streamlining the code: Authorities focus on simplifying tax regulations Viewpoint: Samir Hadj Ali, Chartered Accountant and Managing Partner, Mazars Algeria Gide Loyrette Nouel Letter of the law: A summary of laws and regulations for investors Interview: Samy Laghouati, Partner, Gide Comfort zone: Leading hotels and resorts Listings: Telephone numbers for ministries Facts for visitors: Useful tips for travellers In its quest to improve the quality of education, the government has helped raise the literacy rate from 68.4% in 1998 to nearly 86% in 2015.

Rising enrolment rates, coupled with public spending, are signs of the progress that has been made in the education sector over the past decades. Algeria’s transport infrastructure is in the midst of a major expansion programme, with extensions and upgrades to airports, seaports, roads and rail networks under way or in the pipeline. Although reductions in investment spending are likely to occur more often in coming years, new financing models are expected to provide opportunities to further grow the sector.

With a penetration rate of more than 100% and high levels of geographic coverage in populated coastal areas, the telecoms sector is in the early stages of a shift to high-volume data consumption. Internet infrastructure and usage have developed rapidly, and plans are under way to liberalise fixed-line internet access and e-commerce. Expanding agriculture is an integral part of the current government’s push for economic diversification, and the sector received a significant €2.5bn injection of capital in 2016. The recent Felaha 2019 initiative builds upon the ongoing Public Investment Programme 2015-19 and aims to achieve a reduction of $2bn in the country’s agricultural import bill by 2019.

Page 168 Page 146 Page 128 Page 112

You have reached the limit of premium articles you can view for free. 

Choose from the options below to purchase print or digital editions of our Reports. You can also purchase a website subscription giving you unlimited access to all of our Reports online for 12 months.

If you have already purchased this Report or have a website subscription, please login to continue.

Articles from this chapter

This chapter includes the following articles.
Cover of The Report: Algeria 2016

The Report

This article is from the Table of Contents chapter of The Report: Algeria 2016. Explore other chapters from this report.

Covid-19 Economic Impact Assessments

Stay updated on how some of the world’s most promising markets are being affected by the Covid-19 pandemic, and what actions governments and private businesses are taking to mitigate challenges and ensure their long-term growth story continues.

Register now and also receive a complimentary 2-month licence to the OBG Research Terminal.

Register Here×

Product successfully added to shopping cart