Sellal: Boosting wealth and job generating economy
Algeria should boost a wealth- and job generating economy, less dependent on hydrocarbons, Prime Minister Abdelmalek Sellal said this week.Outlining his government action plan before the Parliament action plan, the premier argued that the economy was facing a major problem, that of creating jobs and wealth. APS reported.
Source : https://www.marocafrik.com/english/Sellal-Boosting...
Business and international investors are sure to welcome his statement that the economy is almost completly dependenton hydrocarbons and needs to diversify to support wealth creation in agriculture and industry. that the
a dynamic economy needs investment promotion and improvement of the business environment and business climate.
However the rule that all partnerships will be majority Algerian owned under the 51/49 per cent rule on foreign investment hasl limited the growth of foreign investment despite his assertion that this rule had no negative impact on the growth of foreign investment.
In its dialogue note for 2011-2012 the African Development bank noted that despite progress made, the Algerian economy faces constraints and challenges that may hinder its development potential. These include: (i) low diversification of sources of growth and the productive base of the economy; (ii) the persistent imbalances in regional development; (iii) a business climate not conducive to private sector development; (iv) the low efficiency of the banking and financial sector; and (v) the weak capacity of public administration.
Algeria is talking the language of economic liberalisation but its socialist state system and heavy bureaucracy reveals a different reality which has been highlighted by the Forum of business leaders.In March 2012 it listed 50 propositions for improving the Algerian business climate.these included the freeing up of investment regulations so that investment was free fromapprovals procedure. It called for the abandonment of the 51/49 rule as regards FDI whilst retaining it for sectors considered strategic where the Algerian majority is mandatory, such as energy, oil, ICT , water, banks, insurance and transportation. Whether Algeria's protectionism, the state's innate desire to control , will permit the growth of a private sector has yet to be seen. Whether it will genuinely empower citizens as it is now claiming it will, also remains to be seen..
The World Economic Forum Global Competitive index highlights the main impediments to achieving economic
competitivity to be access to funding,inefficient government bureaucracy and corruption as the main obstacles investors face in Algeria.
a dynamic economy needs investment promotion and improvement of the business environment and business climate.
However the rule that all partnerships will be majority Algerian owned under the 51/49 per cent rule on foreign investment hasl limited the growth of foreign investment despite his assertion that this rule had no negative impact on the growth of foreign investment.
In its dialogue note for 2011-2012 the African Development bank noted that despite progress made, the Algerian economy faces constraints and challenges that may hinder its development potential. These include: (i) low diversification of sources of growth and the productive base of the economy; (ii) the persistent imbalances in regional development; (iii) a business climate not conducive to private sector development; (iv) the low efficiency of the banking and financial sector; and (v) the weak capacity of public administration.
Algeria is talking the language of economic liberalisation but its socialist state system and heavy bureaucracy reveals a different reality which has been highlighted by the Forum of business leaders.In March 2012 it listed 50 propositions for improving the Algerian business climate.these included the freeing up of investment regulations so that investment was free fromapprovals procedure. It called for the abandonment of the 51/49 rule as regards FDI whilst retaining it for sectors considered strategic where the Algerian majority is mandatory, such as energy, oil, ICT , water, banks, insurance and transportation. Whether Algeria's protectionism, the state's innate desire to control , will permit the growth of a private sector has yet to be seen. Whether it will genuinely empower citizens as it is now claiming it will, also remains to be seen..
The World Economic Forum Global Competitive index highlights the main impediments to achieving economic
competitivity to be access to funding,inefficient government bureaucracy and corruption as the main obstacles investors face in Algeria.
Source : https://www.marocafrik.com/english/Sellal-Boosting...