Workshop in Tunis on developing Tunisian-Algerian trade and investment
Following the creatation of an Algerian Tunisian Business Council in February 2012 in Algiers Tunisian companies have the opportunity to study the advantages of setting up a business in Algeria.
Source : https://www.marocafrik.com/english/Workshop-in-Tun...
The technical workshop in Tunis focused on what advantages Algeria can offer as a business location, La Presse de Tunisie reports. Salaries in Algeria are reasonable at 150 to 700 euros per month. The cost of diesel is a mere 13 cents per litre which helps companies to control their costs.
However, up till now, neither the bilateral trade balance between Tunisia and Algeria, are not reflected by the volume of direct investment.Only 73 Tunisian industrial companies are established in this the Algerian market. Moreover, this finding of low investment by Tunisians abroad is not specific to Algeria but overall, since the ratio of investment to GDP ratio is around 0.2%, while it is 0.3% in developing countries.
Algeria has a GDP of $ 183 billion and an import volume of $ 46 billion,the article says which makes it a stable market as well as a large one with 35 million population facts which make it an attractive investment location.
Algeria is Tunisia's seventh trading partner and ninth supplier. The rise of the informal sector between the two countries illustrates the potential for growth in trade and that the formal sector has been unable to handle this.
Intermaghrebian trade has been little more that 2 per cent for sometime.
Algeria has ambitious plans for development of industrial zones, tourist centers, promotion of road and port infrastructure,and a host of benefits for investors and exporters. "Hence the need for skills and expertise in all areas," said Mr. Hadj Tahar Boulanouar, representative of the central organization at the workshop. Tunisians are favorites for investment in several sectors, including tourism and food processing.
To do this, Mr. Boulanouar reiterated the need to revise regulations that impede bilateral trade and investments.
The Algerian official estimated that the envelope of bilateral trade of $ 1 billion is very limited for two neighboring countries that share a long border with no natural barriers, sea or mountains.
He regreted that consumers in both countries prefer imported products from Europe rather than Tunisian or Algerian products and services.
The factors which impede Tunisian investment in Algeria include the 51 per cent share capital Algerian majority partner rule.The article notes that Tunisia does not have such a regulation and many international investors also find this a disincentive for investing in Algeria.Also, exports of several Tunisian products are limited by a negative list of products which ar eprohibited for import.
Mr. Brahim Jalel,the representative of the Algerian National Organisation for Investments (ANDI) listed a number of privileges granted to foreign investors and exporters whose exemption from 3 to 5 years of tariffs, taxes on profits and certain taxes and employer contributions. Focusing on funding, he added that Algerian banks were
offering cheap loans at a rate of 3.5%, with a bonus of two points.
However, up till now, neither the bilateral trade balance between Tunisia and Algeria, are not reflected by the volume of direct investment.Only 73 Tunisian industrial companies are established in this the Algerian market. Moreover, this finding of low investment by Tunisians abroad is not specific to Algeria but overall, since the ratio of investment to GDP ratio is around 0.2%, while it is 0.3% in developing countries.
Algeria has a GDP of $ 183 billion and an import volume of $ 46 billion,the article says which makes it a stable market as well as a large one with 35 million population facts which make it an attractive investment location.
Algeria is Tunisia's seventh trading partner and ninth supplier. The rise of the informal sector between the two countries illustrates the potential for growth in trade and that the formal sector has been unable to handle this.
Intermaghrebian trade has been little more that 2 per cent for sometime.
Algeria has ambitious plans for development of industrial zones, tourist centers, promotion of road and port infrastructure,and a host of benefits for investors and exporters. "Hence the need for skills and expertise in all areas," said Mr. Hadj Tahar Boulanouar, representative of the central organization at the workshop. Tunisians are favorites for investment in several sectors, including tourism and food processing.
To do this, Mr. Boulanouar reiterated the need to revise regulations that impede bilateral trade and investments.
The Algerian official estimated that the envelope of bilateral trade of $ 1 billion is very limited for two neighboring countries that share a long border with no natural barriers, sea or mountains.
He regreted that consumers in both countries prefer imported products from Europe rather than Tunisian or Algerian products and services.
The factors which impede Tunisian investment in Algeria include the 51 per cent share capital Algerian majority partner rule.The article notes that Tunisia does not have such a regulation and many international investors also find this a disincentive for investing in Algeria.Also, exports of several Tunisian products are limited by a negative list of products which ar eprohibited for import.
Mr. Brahim Jalel,the representative of the Algerian National Organisation for Investments (ANDI) listed a number of privileges granted to foreign investors and exporters whose exemption from 3 to 5 years of tariffs, taxes on profits and certain taxes and employer contributions. Focusing on funding, he added that Algerian banks were
offering cheap loans at a rate of 3.5%, with a bonus of two points.
Source : https://www.marocafrik.com/english/Workshop-in-Tun...