São Paulo – The government of Algeria launched a partnership programme this week whose objective is to attract private investment within the country and from abroad. The Call for Industrial Projects 2013 contemplates 18 activities considered important for the growth and diversification of Algerian production and for the generation of jobs.
According to the first councillor of the embassy of Algeria in Brasília, Abdelhamid Rahmani, the country had a strong industrial base from the 1960s on, after the war of independence from France, but many factories were destroyed in the 1990s, when Algeria lived civil conflict, and several others were privatised last decade. “Now Algeria wants to re-release its industrial sector,” he said.
In this respect, the government is offering a series of incentives to companies interested in implementing projects in the country, including fiscal benefits, financing, reduction of labour charges, concession of land, support to exports and other forms of facilitation of enterprises.
Subsidies vary according to the sector, project characteristics and region chosen. For example, the Algerians are interested in developing certain regions and deciding for one of them may result in further tax breaks and easing. In the same way, small companies may obtain further benefits.
One of the program financing sources alone, the National Investment Fund, has 150 billion Algerian dinars, equivalent to US$ 1.864 billion. Another, to be divided between different provinces, has over 48 billion dinars (US$ 596 million).
As a great exporter of oil and gas, Algeria has funds in strong currencies to finance enterprises, as well as abundant raw material for the petrochemical sector. Gas is also a source of cheap energy and the country has other natural resources, like phosphates, and other minerals used in the chemical and fertilizer industry.
The Algerians also benefit from being close to the supplier and consumer markets, like Europe, Africa and the Middle East. According to Rahmani, several agreements have already been signed with North American, European and Arab companies.
According to the programme, a private company must establish a joint venture with an Algerian state-owned company. For such, the project must be approved. Companies may present proposals up to December 31st, using a form that is available online (see details below). The initiative is by the Ministry of Industry, Small and Medium Enterprises and Investment Promotion (Mipmepi).
The industrial sectors chosen for the programme are the textile, garment, leather and its products, wood and furniture, ironworks and metallurgy, pipes and building material (except cement), cables and other electric, electronic equipment and household appliances, pharmaceutics, cosmetics and personal hygiene, chemicals and petrochemicals, aeronautics, mechanics and automotive, information and telecommunications technology, advanced technology, ship building, agroindustry, transportation material, products for sustainable cities recycling, treatment of waste, etc.), and water treatment and sea-water desalination sectors.
Further information
Embassy of Algeria in Brasília
Tel.: (+55 61) 3248-4039 / 1949
E-mails: sanag277@terra.com.br and argelia.bsb@gmail.com
Site: www.embaixadadaargelia.org.br
To download the call, enrolment form and other programme documents visit sites www.mipmepi.gov.dz or www.andpme.org.dz.
It is also possible to request information on email partenariat@mipmepi.gov.dz.
*Translated by Mark Ament
