WHY DO BUSINESS WITH ALGERIA ?
The opening of the Algerian economy has grown significantly in recent years and has turned into a market-oriented economy. Seeking to diversify and modernise the economy, the Algerian government has embarked on an aggressive liberalisation programme to attract foreign direct investment.
After years of economic stagnation, Algeria is today confronted with the challenge to strengthen and diversify its economy. This challenge is analysed in development plans and priority initiatives programmed. Algerian authorities are using various tools to encourage and facilitate investments in strategic sectors. Various supporting funds are also available.
To improve the external competitiveness of enterprises and prepare them for a widespread privatisation programme, several upgrading programmes for public and private enterprises have been launched, including the Programme for Industrial Competitiveness managed by the Ministry of Industry with assistance from the United Nations Development Programme (UNDP), the United Nations Industrial Development Organization (UNIDO) and the Euro-Development Programme for Small and Medium-sized Enterprises (Programme Européen de Développement des PME – EDPME), with support from the European Commission.
Partnership between Algerian and foreign companies is advancing.
According to a recent market study, the Algeria’s needs for national and foreign direct investment (FDI) are estimated at DZ 570 billion by 2010. If the investment climate improves, Algeria could attract between EUR 3.6 and 4.3 billion of FDI a year.
At the beginning of 2006, the Minister of Holdings and Investment Promotion announced that the privatisation process would be accelerated to reach at least 500 companies (out of 1055 targeted) by the end of the year.
