Why Algeria ?

Why Algeria ?

Doing business in Algeria doesn’t require a lot.  The opportunities in Algeria are greater than any time before. These unprecedented historical opportunities are, as per experts’ analysis, rooted in the following reasons:

Facts

  • Algeria has made significant gains in each of the key human development indicators (hdi);
  • Access to regional markets (europe, sub-saharan, cedeao, cemac, midel-est);
  • Export hubb to africa, europe & midel-est & north america;
  • Institutional stability and attractive investment opportunities;
  • Access to a rich country with unlimited natural resources;
  • Large economy with economic growth;
  • Aggressive social and economic development policies in the sectors of agricultur, industry; infrastucture;
  • Strong infrastructure;
  • Low cost production factors;
  • Tax and other investment incentives;
  • Financing opportunities through public banks, investment funds & financial institutions

  The government’s continued implementation of the public-investment programme in connection with the 2014-18 five-year plan (amounting to usd 286 billion) and its response to strong social demands for more purchasing power, jobs and housing had repercussions for public expenditure, which represented about 43.2% of gdp in 2018.

 In 2018 the government passed a series of major constitutional amendments to strengthen algeria’s governing structure and deepen separation of powers. Placing some long-term economic challenges which include diversifying the economy away from its reliance on hydrocarbon exports, bolstering the private sector, attracting foreign investment, and providing adequate jobs for younger algerians

Key Assets

  • The strategic location close to Europe makes it a potential supplier of solar energy, and there are considerable possibilities for international tourism.
  • GDP growth has been above 2% for the last 10 years.
  • The country’s crude oil reserves are the 16th largest in the world with 12,200 million barrels of oil reserves (at the start of 2017). Algeria is also Africa’s largest oat market.
  • Robust growth in the non-hydrocarbons sector in 2014 - 2017, with gains of 5.6% and 5%, respectively, this allowed aggregate GDP growth to remain respectably strong at 3.8% in both 2016 and 2017, even in the face of lower oil prices, against which about 95% of exports are benchmarked.
  • A demographic economic endowment, young population 68% of the 40 million population is less than 35 years old.
  • One of the most advanced education system and health coverage system in Africa.
  • The overall liberalization of the economy in the 2000s has meant that the rules regarding foreign investment have been relaxed.
  • Algeria has a well-educated population, especially when its extensive migrant community is taken into account.

New government  plan announced objectives for energy (2014-2019)

  • Intensification of exploration and development for conventional reserves
  • New production start-ups for conventional Oil and Gas
  • Testing activities for non-conventional hydrocarbons (shale gas)
  • 14 new pipes projects
  • 6 new refineries
  • Electricity: doubling the electricity production capacity by 2019
  • Renewable energy development (mainly solar)
  • Petrochemical industry development
  • Economy diversification in order to reach a 7% GDP growth rate

Attractive Financial opportunities

  • Country that has almost no foreign debt and Foreign Currency Reserves of 100 USD billions (4 years imports).
  • The financial systems has not been affected by the financial crisis
  • 40% of deposit are not converted into loans to the economy
  • Great development opportunities:
    • Banking services
    • Electronic banking
    • Mobile banking
    • In stock market
    • Professionnal asset management

Date

16 January 2020

Tags

Algeria, Profile

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