Industry & Mining
From The Report: Algeria 2015
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Given the Algerian economy’s reliance on the oil and gas sector, manufacturing industries have historically taken a secondary role in the country’s economic development policies. However, since the early 2000s, industry has received renewed interest from authorities, who have been looking to counteract rising demand for imports and revamp new industrial chains as a means to support massive public investment programmes geared towards infrastructure and housing. Following on from the reorganisation of the industrial public sector in February 2015, decisive steps are now being taken to reduce reliance on imports in a number of manufacturing segments, including automotive, fertilisers, petrochemicals and smartphones. Recent years have also seen key steps towards realising Algeria’s mining potential by enacting a new mining law and developing large-scale projects in the areas of phosphates, iron ore, base metals and gold. This chapter contains interviews with Abdesselam Bouchouareb, Minister of Industry and Mining; Sami Mainich, General Manager, Dow Chemical Maghreb; and Guillaume Josselin, Managing Director, Renault Algeria.

Articles from this Chapter

Overview

Production values: A reorganised industrial sector is seeking to cut imports
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Given the Algerian economy’s reliance on the oil and gas sector, manufacturing industries have historically taken a secondary role in the country’s economic development policies. However, since the early 2000s, industry has been the recipient of renewed interest from authorities, who have been looking to counteract rising demand for imports and revamp new industrial chains as a means to support massive public investment programmes geared towards infrastructure and housing. As a whole, manufacturing…

Interview

Deep potential: OBG talks to Abdesselam Bouchouareb, Minister of Industry and Mining
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Interview: Abdesselam Bouchouareb What are the industrial development strategies and markets for non-hydrocarbons exports? ADESSELAM BOUCHOUAREB: The expansion of the export base is one of the structural pillars of the new industrial strategy of Algeria. Measures are to be taken to develop potential export sectors such as petrochemicals, fertilisers, construction materials and agribusiness. In parallel, we are continuously striving to improve foreign trade logistics. In 2014 we launched a series…

Analysis

Doubling down: Government projects are seeking to double mining turnover
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In an attempt to offset declining revenues from hydrocarbons, recent years have seen authorities take key steps towards realising Algeria’s mining potential by enacting a new mining law and developing large-scale projects in the areas of phosphates, iron ore, base metals and gold. Up until recently, the contribution of mining to the economy has been fairly limited, with the sector accounting for less than 1% of GDP and registering around $200m in turnover. Now authorities have declared their intention…

Analysis

Catching up fast: New plants are helping to achieve self-sufficiency in steel
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The recovery of the steel industry has been at the top of the government’s agenda since the implementation of the first five-year development programmes in the early 2000s. Massive investments in housing and transport infrastructure resulted in a sharp increase in the nation’s needs for steel products, which quickly outstripped local capacity. State Of Play In 2014 Algeria’s domestic steel output was essentially produced by two major steel plants, including one in El Hadjar, jointly…

Interview

Sky’s the limit: OBG talks to Sami Mainich, General Manager, Dow Chemical Maghreb
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Interview: Sami Mainich What is your view on the potential of chemical manufacturing in Algeria? SAMI MAINICH: The opportunities for chemical manufacturing in Algeria are limitless. The country imports almost all of the chemicals it uses across a wide spectrum of industries and has an abundant supply of feedstock, most of which is exported. The government and Sonatrach have also expressed interest in – and support for – developing domestic chemical manufacturing capabilities. Nonetheless, there…

Interview

Local potential: OBG talks to Guillaume Josselin, Managing Director, Renault Algeria
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Inteview: Guillaume Josselin What makes Algeria an attractive market for automobile manufacturers? GUILLAUME JOSSELIN: There are two factors to consider when determining the feasibility of an industrial automobile project: one is the level of local demand and the other is the potential for growth. Algeria clearly meets these criteria, with roughly 100 vehicles per 1000 inhabitants, compared to 600 in Europe and 800 in the US. Algeria is a key market for Renault: we are the leader here, and it is…

Analysis

Incentives to invest: Pathways to investment widen thanks to new legislation
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In response to the drop in oil revenues in June 2014, Algeria’s government has stepped up the pace of economic reforms that have been rolled out over the past two years in order to encourage the development of new industrial avenues, with a clear goal of reaching 7% growth in non-hydrocarbons by 2019. As such, Algeria’s Finance Law 2016 – in line with the previous 2015 finance and amending finance laws – is intended to boost industrial investment further, free up private initiatives and improve…