Top Companies in Algeria
Archive for November, 2012
Harley Davidson store Inauguration
As announced on the same site, the motorcycle market in Algeria is hosting Harley-Davidson introduced through Sarl PROX4 which recognizes five years in the activity of two wheels.
Inauguration of the legendary showroom American brand took place this Saturday at Blida.Situated on highway and imposing its design which has no equal as standard HD, the site is spread over three levels, with 1600 RN2 divided into an exhibition space of 600m2, 250m2 workshop, storage space of 750m2 and 600m2 ample parking
“II will provide its customers with a wide range of motorcycles of different styles, custom design center and excellent after-sales service,” says one Harley-Davidson Algiers name of the concession whose catalog offers five different ranges, namely the Sportster, the Dynha the Softail, V-Road and Touring. should be noted that the store has a space dedicated exclusively to members HOG (Harley Owners Group).
Burn the cash
Theoretically Algeria needs to reduce its reliance on a cash economy.
In its usual style, the Algerian government has just repealed a new rule before it even it became effective. The rule in itself was a good move, it required any payments above 50,000 DZD to be paid by cheque. Algerian economic activity is hugely dependent on cash. People pay for a car or a house with real notes. Imagine bags full of cash, literally! So people should be encouraged to ditch the cash in favour of alternatives. While the powers in charge were right in thinking that should happen, the decision was premature, which led to its cancellation in the end. Reducing our dependence on cash can bring many benefits:
1. Allow banks to build reserves for investment
2. Provide safety over funds
3. Reduce money laundering
4. Bring income from informal economic activity into the mainstream
So why don’t we do it? The primary reason for our dependence on cash, I believe, is the lack of trust in the financial system. That’s why on the day of “virement” (wage pay in), everyone rushes to withdraw their hard earned Dinars. After the long queues, the insults, the fights, and the heat, you get to a condescending agent who informs you that you have no funds, or that they don’t have the monies to pay you. Recent bank collapses like Khalifa and BCIA are not encouraging either.
Cheques have been very unsuccessful. Many issue cheques without funds, which bounce back, leaving the beneficiary in a delicate situation. Many have resorted to just not accepting cheques. Now, I understand why my auntie laughed every time I asked why she did not pay for her groceries with a cheque. I was young and naive!
Launch a prototype in Algiers Algeria Telemedicine Project
A prototype of the project Telemedicine Network Algeria (DZ-RT), connecting the University Hospital Centre (CHU) Lamine Debaghine Bab El Oued (Algiers) and public hospital establishments (EPH) wilaya of Bechar Laghouat and was launched Tuesday in Algiers.
This project is part of the partnership agreement between the Ministry of Health, Population and Hospital Reform and the Post Office and Information technology and communication.
It is managed by the National Agency of technology parks (ANPT) and the National Agency for Healthcare Documentation (ANDS).
CHU five and twelve EPH South have been selected for this project include improving the medical care of residents of the southern regions of the country, access to health care at a distance, in addition to the training and transfer of data.
Its generalization to four CHU and EPH remaining ten will take place once the pilot phase is completed and consolidated.
Un prototype du projet du Réseau de Télémédecine Algérie (RT-DZ), reliant le Centre hospitalo-universitaire (CHU) Lamine Debaghine de Bab El Oued (Alger) et les Etablissements publics hospitaliers (EPH) des wilayas de Laghouat et Bechar, a été lancé mardi à Alger.
Ce projet s’inscrit dans le cadre de la convention de partenariat entre le ministère de la Santé, de la Population et de la Réforme hospitalière et celui de la Poste et des Technologies de l’information et de la communication.
Il est piloté par l’Agence nationale des parcs technologiques (ANPT) et l’Agence nationale de documentation de la santé (ANDS).
Cinq CHU et douze EPH du sud ont été retenus pour ce projet destiné notamment à améliorer la prise en charge médicale des habitants des régions du sud du pays, accessibilité aux soins à distance, outre la formation continue et les transferts des données.
Sa généralisation aux quatre CHU et les dix EPH restants aura lieu une fois la phase pilote terminée et ses résultats consolidés.
RECORD EXPORTS OF DATES FOR TUNISIA
The campaign of this year has proven to be better than the one of 2011. The datas report that the exported volumes have increased, as well as the total values. The 2012 production has increased of about 19%.
According to the Tunisian Minister of Agriculture, date exports at the end of July 2012 reached the record amount of 87.600 tons for a total value of 302 millions of DT (equal to 148 millions of euros) while exports in 2011 had been of 73.400 tons, for a value of 255 millions of DT (about 125 millions of euros).
According to the statistics of the Minister, the 2011-12 dates picking has reached 191.000 tons, 135.000 of which are first quality dates of the “Deglet EnNour” kind, the most appreciated variety on foreign markets.
45.000 TONS OF OLIVE OIL PRODUCTION ESTIMATED IN ALGERIA
The production of table olives increases year by year, on average from 5 to 6%, states the director of agricultural statistics of the Minister of Agricolture and Rural Development, Hocine Abdelghafour.
The production of olive oil will reach or even exceed 45.000 tons in Algeria, according to the assessments of the Technical Institute of Fruit and Vine Agriculture (ITAFV) which also took in consideration an increase of the harvest of table olives.
“The 2012-13 olive campaign will be much better than the previous one since we expect at least an olive oil production of 45.000 tons” says the director of ITAFV, Mahmoud Mendil.
Olive oil production has decreased of 41% since the 2011-2012 campaign, reaching 39.558 tons against a record harvest of 66.981 tons in 2010/11.
In Algeria, olive cultivation is still subject to the “alternation phenomenon” since a good harvest is often followed by a worse one the next year, mostly because of the vast cropped area and the archaic cultivation techniques, according to Mendil.
Considering a total production of 390 millions of kilos, the amount of table olives represents 140 millions of kilos, according to the statistics of the Minister of Agriculture.
“Bloomberg-Afrique” TV Channel to be Launched from Casablanca Soon
Francophone African and Maghreban countries will shortly be able to watch a new TV channel, “Bloomberg-Afrique” that will beam its programs in French from the city of Casablanca.
The new channel will broadcast programs on the development of the continent in addition to its primary role as a channel of economic and financial information, said the project initiators who made the announcement last week in Dakar during the 5th Forum of African Media Leaders.
The Bloomberg-Afrique project will be managed by the Casablanca Media Partners Company, under an agreement signed with the Bloomberg group.
The project initiators said it fits perfectly into the new vision of Morocco and will help it strengthen its position on the African arena on both the economic and political levels.
The project is being set up with the participation of private operators and a number of Moroccan investors are said to be interested in the project.
An Arabic version will soon be released by the Media Group of Prince Al Walid Ibn Talal. According to press reports, this channel will also be based in Casablanca.
Bloomberg Television is a 24-hour global network broadcasting business and financial news. It is distributed globally, reaching over 310 million homes worldwide. It is owned and operated by Bloomberg L.P. and is internationally headquartered in New York City with its European headquarters in London and Asian headquarters in Hong Kong. It was first launched in 1994.
Algeria: economy situation and the IMF mission
Discussions were held in Algeria by the international monetary fund mission. These discussions gathered the minister of Finance, the minister of agriculture and rural development, the minister of labor, employment and social security and the Governor of the Bank of Algeria.
All of them reflected on short and medium term economic policies and the influence that the actual global context may have on Algeria’s economy. Afterwards the mission met with representatives of economic and financial sector and civil society. According to them 2012’s performance was solid and they hope that growth will reach 3.4 % by 2013 allowed by the hydrocarbon sector.
The banking sector also stayed quite solid. Because of fiscal expansion in recent years, inflation rose and fiscal vulnerability increased. Concerning unemployment it was reported to have stayed stable at 10 % in 2011. Unemployment has a high percentage for females and young Algerians.
According to the mission’s discussion, the main challenges for short and medium term will be controlling inflation and making fiscal sustainability stronger. It also stated that the inflation can be fought by coordinating monetary and fiscal policies. However for the long term, hydrocarbon resources will assure fiscal sustainability.
Growth rate remains below the countries potential which means that unemployment can’t be reduced. It can be achieved by making public investments more efficient, stimulating the country’s external competitiveness by perusing with their foreign exchange policy. And most importantly by making structural reforms to promote the countries private-sector industries and increase their productivity.
However the mission believes that it should be accompanied by a medium term budget and as a conclusion of the discussions the main thing Algeria has to create is a plan to improve the business climate.
The sad reality of algeria
almost all of algeria’s borders are closed
Did you wonder?
How many commercials seemed to capture the perfect chocolate swirling around. How they showed fresh fruit.
Great analysis from dzfox on algerian soccer
When Vahid was declared coach by the FAF I was deeply disappointed. There was a lot of talk about a top class coach and I’d never heard of him. I didn’t want any of the coaches they’d talked about anyway, i wanted a Dutch ‘total football’ coach because a lot of Algerian players can play in different positions (defenders scoring etc), also because every member of the team needed to take reponsibility and defend when not in posession – I got used to the sight of players not bothering to track back or give a damn when they lost the ball (all the worse when they were DMs – Yebda). But I followed the team and the team started playing football. I mean real football. Passes were connecting, we were shown great interplay by Feghouli and Boudebouz and the fullbacks were playing great balls into the last 3rd. Along the ground and in the air. All of a sudden other teams were on the receiving end of thrashings – from us! I felt sorry for them. The opposition didn’t know what hit them. Egypt was circling the drain and a rejuvenated young Algerian squad was wacking goals in from all angles. We all noticed a lingering problem, the strikers although an improvement were still missing chances. But they were also converting chances. We all regreted Slimani’s miss against Mali, it was painful to watch him miss an open goal that cost us all 3 points. by the Libya game it was all forgotten and Soudanis goals, and Slimanis header vindicated them in the eyes of many against a determined and physical Libyan team. Lets not forget how honourably the team played whilst they were being tackled roughly, punched and spat on by opposition players.
When he first took charge Vahid told the players off, telling them how badly they were playing. One of the team started laughing. (I guess he thought it was funny Algeria getting thrashed and humiliated). Vahid told him off and then told him he hadn’t scored for club or country in months. That was the state of the team. Belhadj and Matmour retired. Thanks for the memories, but I was glad to see them go. As much as they contributed, they could also make costly mistakes. Yahia left. That was disappointing. Even on the bench he could be a big inspiration. And he was the best reader of the game we ever had at CB. People often point to the Morocco game, but the fullbacks were getting eaten alive (Mostefa had been hit at the back of the head and ‘I don’t like to tackle hard’ Mesbah was having a torrid time). And if you’re a centre back and you’ve seen a winger glide past your left back (several times) with ease, you don’t just stand there waiting for him to take a shot, you move to close him down, which created a space down the middle. (Lemmouchia looked back at the defence in total shock during the game – doing his best to stem the tide of one way traffic). Boudebouz was on the bench that day, so was Ferradj who could have made a difference – he knows how to make a proper tackle. 4-0. Lets not forget that scoreline. What bothered me most about Bencheikha is: sitting at home, everyone in my family could see the changes that needed to be made. Even the womenfolk. So much for ‘The General’.
So here we are and everyone knows better than Vahid. The Algerian press are on his back asking why he isn’t playing certain players. Boudebouz, Ziani, Abdoun, Benmoussa, why Metref wasn’t happy, the stories never end. I would love to see any of these reporters actually manage a team. Can you analyse a situation real time and see where the threats / opportunites are? Can you be down 2 goals and hold your nerve and stick to the gameplan? Or do you make changes? You don’t need to have played the game to manage, but even in rare cases like Murinho – he was an interpreter to a great player and manager for years. And AVB was his understudy. having played buys you creadability with the players. Having been lead goalscorer 2 years on the go in France means its not luck, you’re a proven quantity. Vahid felt he was discriminated against (being Muslim) in the Yugoslav national team – not being played enough despite his high goal ratio. Lets face it, he knows how goals come about. His track record speaks for itself.
Vahid has taken anarchy and turned it into order. He does not persist with players who don’t ‘have it’ – Ghezzal, Matmour, but instead takes raw young players and takes them under his wing, builds their confidence, and improves them. We have a solid best 11, and were it not for injuries, we’d have a solid best 23 or 27 even.
I think people generally are very demanding these days of football managers, lets not forget at the world cup we were there to make up the numbers. Same way you get a call from a friend who says ‘hey man we’re a player short, can you make it tonight…’ that was Algeria in 2010. It was an honour just to be there. Only 2 prior World Cup appearances and never getting past the group stage.
I feel that in the next few months and years Algeria will become a team even top European teams will want to avoid. Inshallah all signs point to a team in ascendancy – ranked 19th in the world, as long as the coach is given time to do his job and the supporters show patience and keep their expectations in check.
Algeria: Rating the banking system
Long-awaited plans to set up a ratings agency that will gauge stability levels in Algeria’s banks look to be back on track, with the process for selecting a monitoring system now gathering pace.
Algeria will be hoping that the launch of the new ratings system for its banks will boost confidence in the sector, while paving the way for increased lending, in line with the country’s bid to diversify its economy.
Efforts to introduce a ratings system for the banking sector have been slow to get off the ground, with the Bank of Algeria (BoA) taking time to decide how the process will be implemented. The launch has already been put back from a scheduled date at the end of 2011, while Central Bank Governor Mohamed Laksaci said last year that bank ratings should be in place from 2013.
A representative from the Association des Banques et des Établissements Financiers (Association of Banks and Financial Institutions, ABEF) told the Algeria Press Service (APS) in August that work on the pilot project had now reached a “technical elaboration” stage.
ABEF general delegate Abderezak Trabelsi also highlighted the importance of having a ratings system in place for the financial services industry. “There must be a bank rating tool, agency or company, regardless of the name, since there is a need for creating a scoring tool for companies and insurance companies because the information is crucial in a market economy,” he said.
The governor of the Central Bank, Mohamed Laksaci, added that the rating system would help in the early detection of banks’ vulnerabilities, while playing a part in maintaining stability in the sector and protecting depositors.
The BoA has yet to decide what mechanism it will adopt for the monitoring process, according to Trabelsi. However, it is understood that three options are being considered; a local ratings mechanism using locally qualified staff, a joint venture with a foreign ratings agency, and a system that would see several separate ratings agencies operating in Algeria.
Reports have suggested that a foreign partner is likely to be brought in to implement the system and train staff employed by the new organisation.
The BoA has already set up a ratings system in partnership with the IMF and the US Treasury that is currently being piloted in two banks. However, the new ratings system is expected to monitor all banks and financial institutions in Algeria on a range of criteria, such as liquidity, risk management and solvency ratios, while assessing them on a scoring system and establishing rules for intervention. The system should increase detection of money laundering and other illegal activities in the banking sector, while creating a more practical and transparent means of monitoring banks’ resilience.
Nour Nahawi, the director general of ABC Bank, an Algerian subsidiary of Manama-based ABC Bahrain, told OBG that the new rating system should produce a positive outcome for the country’s banks. “With a new ratings system forthcoming and efforts to increase lending opportunities under way, the government is taking a pro-active stance in maintaining the banking sector’s stability, which should lead to even stronger and healthier banks,” he said.
The Algerian banking system has remained stable through the global financial crisis. However, levels of lending to the private sector remain low. The country’s six state-owned banks, which account for around 85% of all assets, are known for adopting a highly cautious stance towards lending, after incurring losses on loans to inefficient public companies. As a result, the banking system retains a large quantity of liquidity that could be driving growth in the private sector, where capital is much in need.
With most state banks also lacking the sophisticated risk-management technology used by the private sector, the government will be hoping that the introduction of an independent ratings agency encourages strong-performing banks to lend more freely.
Aymeric de Reynies, the senior country manager at Calyon Bank, part of France’s Crédit Agricole Group, told OBG that a strong private sector was a prerequisite for development. “The future of the banking sector will be small and medium-sized enterprises, and a proper strategy should be put in place to bring sufficient support to their activities and development,” he said.
In the longer term, the development of the Algerian banking system is likely to be characterised by greater participation from private-sector lenders, following a trend that emerged a few years ago.
Andre Dieu, the head of division at the Algerian branch of French bank Natixis, believes international interest in the North African country is well founded. “Algeria is a growing market in terms of potential, the market is not yet fragmented and there is still a relatively low rate of use of the banking system compared to some neighbouring countries,” he told OBG. “This offers great potential for any international banks interested to invest.”
Statement by the IMF Mission on the 2012 Article IV Consultations Mission with Algeria
An International Monetary Fund (IMF) mission, led by Mr. Zeine Zeidane, visited Algiers from October 29 to November 11, 2012 to hold annual Article IV discussions. The consultation will conclude with the preparation of a report to be discussed by the IMF Executive Board in early 2013.
The discussions focused on short- and medium-term economic policies as well as the economic outlook in the context of a global economic environment that remains difficult. The mission held discussions with His Excellency, the Minister of Finance, Mr. Karim Djoudi, His Excellency, the Minister of Agriculture and Rural Development, Mr. Rachid Benaissa, His Excellency, the Minister of Housing and Town-planning, Mr. Abdelmadjid Tebboune, His Excellency, the Minister of Labor, Employment, and Social Security, Mr. Tayeb Louh and His Excellency, the Governor of the Bank of Algeria, Mr. Mohammed Laksaci. The mission also met with representatives of the economic and financial sectors and civil society.
Performance in 2012 is expected to remain solid. Growth is projected to reach 2.5 percent, supported by a buoyant non-hydrocarbon sector bolstered by public spending. Growth is forecast to reach 3.4 percent in 2013, underpinned by domestic demand and a recovery in the hydrocarbon sector. The current account surplus is expected to reach 8.2 percent of GDP, with higher hydrocarbon prices offsetting lower export volumes. The current account surplus will be at 7.1 percent of GDP in 2013. In 2012 and 2013, foreign-exchange reserves will remain very comfortable and external debt levels very low. The banking sector stayed solid in 2012. The oil stabilization fund, net of public debt, reached 26 percent of GDP.
However, inflation surged to 8.4 percent in 2012. Further, fiscal vulnerability has increased as a result of the fiscal expansion of recent years. The fiscal balance is expected to deteriorate to 3.7 percent of GDP, weighted by the full effect of wage increases and back-payments. Vulnerability to hydrocarbon prices has consequently increased, with the breakeven price reaching $121 per barrel in 2012. Although unemployment was stable at 10 percent in 2011, youth and female unemployment rates remains high, at 21.5 percent and 17 percent, respectively.
The main short and medium term challenges facing Algeria will be controlling inflation, strengthening fiscal sustainability, and boosting growth in the non-hydrocarbon sector. Monetary and fiscal policies should be coordinated to fight inflation. The planned consolidation of current spending in 2013 is welcome. The liquidity management policy introduced in 2012 should be pursued, and supported by an increased recourse to financial markets by the Treasury to finance the public deficit. This policy could also be further bolstered by raising interest rates with a view to bringing inflation down to the 4-4.5 percent target.
Long-term fiscal sustainability is dependent on hydrocarbon resources. The prudent fiscal policy envisaged for 2013 will restore fiscal space and should be pursued over the medium term through the containment of current spending and the development of non-hydrocarbon revenues. Similarly, the efforts launched by the authorities to modernize public financial management, and supported by a medium-term budget framework, should help strengthen the efficiency of public expenditure management.
Algeria must step up its growth rate, which remains below potential, in order to reduce unemployment. This can be achieved by maintaining public investment and making it more efficient, continuing a foreign exchange policy that fosters external competitiveness, and undertaking structural reforms to promote private-sector-led growth and increase total factor productivity. A strategy is therefore needed to improve the business climate, alleviate the constraints on foreign investment, promote greater international trade integration, and develop the financial sector.
Germany Plans Extensive Arms Deal with Algeria
German arms sales to Algeria have increased dramatically in the last two years,. Whereas weapons manufacturers in Germany sold less than 20 million euros worth of materiel to Algeria in 2010, sales have jumped to almost 400 million in the two years since.
Now, having weathered recent mini-scandals due to large weapons deals with Saudi Arabia and Indonesia, Germany is pursuing a significant increase in arms exports and cooperation with Algeria. a subsidiary of defense contractor Rheinmetall plans to produce up to 1,200 Fuchs armoured personnel carriers in Algeria in the next 10 years(woohoo local economy boost). All of the vehicles are reportedly for use in Algeria.
In addition, since the beginning of 2011, Berlin has authorized the delivery to the country of 54 Fuchs vehicles worth €195 million ($248 million) as well as other military vehicles worth €286 million. Berlin has also underwritten a €2.13 billion deal for two warships bound for Algeria. The deals represent a significant increase in weapons deals with the North African country. In 2010, German arms sales to Algeria were worth a mere €19.8 million.(of course the germans are not selling the hard stuff leopard tanks just armored carriers, an armored carrier that was first developed in the 80’s)
Automobiles Drive Up Moroccan Exports
The automotive industry is beginning to increase its weight among Moroccan exports, mainly in connection with the new Renault industrial complex in Tangier. Indeed, exports of locally manufactured cars increased by 5% by the end of September. Furthermore, finished consumer goods saw foreign sales increase by more than 8% during the first three-quarters of the year, reaching revenue of around 31 billion dirhams.
This is according to the latest figures from the Moroccan Exchange Office, which attributed the increase in total exports of goods made in Morocco to the rise in shipments of locally produced cars. In fact, these automobile exports have increased more than fivefold, from just 669.9 million dirhams by the end of September of last year to more than 3.42 billion dirhams during the same period this year. The sharp increase is due to the beginning of operations at the Renault industrial complex in Tangier. This success was enhanced by Morocco’s new industrial policy, which has made the automobile industry one of its main pillars. The Renault project has benefitted from national investment.
unfortunately in algeria, SNVI is not making any personal cars. Renault and Volkswagen have not started production. Algeria imports a lot of cars.
Obama’s 2nd Term: Less Aid for North Africa?
Many analysts and experts have predicted potential outcomes of US President Barack Obama’s next four years in office and what they could mean for the Middle East.
The election rhetoric proved that Americans are more concerned with national economic and social issues than they are with foreign relations and international aid. The longer that the US economic downturn continues, the more likely it is that the government will reallocate funds intended for foreign aid to domestic programs.
Right now, the US is one of the major sources of dollars for North African economies, particularly Egypt and Morocco. Egypt receives $1.3 billion in military aid alone every year from the US(because of the camp David accords), and last year it announced the creation of an $800 million fund for the benefit of Arab Spring countries.
We believe those types of sums are unlikely to remain the same, given the current situation.
A slow withdrawal of the United States from North African economies implies many political and fiscal movements for the leaders of those countries. Should US aid disappear, countries will have to rely on other methods of obtaining dollars, all of which pose their own problems.
FDI
Foreign Direct Investment (FDI) is another way in which countries can earn foreign currency. This is particularly beneficial in countries with exploitable oil and gas reserves, like Algeria and Libya. Increasing FDI will allow for development and encourage entrepreneurs and businesses to grow. This could be one of the best ways to encourage long-term development in North Africa.
Tourism
Tourism is the last way that foreign money moves into North African countries. Tourism has been a vital part of the economies there(morocco tunisia and Egypt in particular), and virtually disappeared during the violence that engulfed Arab Spring. However, the recent installation of Islamist governments poses an additional barrier.
In order to encourage Western tourism countries must downplay religious law or sharia requirements – tourists are unlikely to visit Egypt if Red Sea beach resorts are shut down. Governments might have to put practical economic decisions above moral or religious ones, which in itself could cause problems with their own constituencies. Already, Egypt is facing a protest this weekend from Islamists who believe that the government is not establishing sharia law forcefully or quickly enough.
There are several implications of these changes. One problem that governments will have is the need to appease both businessmen on the one hand and Islamists on the other. However, the primary change will be an alteration in the balance between the public and private sectors. Without federal aid going to governments, the other means of foreign investment, ie FDI and tourism, will benefit on the private sector. This will result in the diminishment of the public sector and increasing importance, as well as contributions, from the private sector.
It would benefit North African governments to begin policies focusing on the private sector now to prepare for that eventuality.
The French-Algerian Relationship: Searching for a New Era
France Remains Algeria’s First Economic Partner: For How Long?
The fact that France and Algeria did not succeed in tackling the past and are still going ahead must not conceal the existing strong economic relationship. For a while, indeed, France has been the first supplier of Algeria and remains the first investor in the country. After a serious slump in the 1990s, . Supplanted by the Americans a decade ago, the French hydrocarbon’s major Total regained its market share. The big French companies, especially banks such as BNP-Paribas and Société Générale who have been entrenched in Algeria for a decade, are developing and diversifying their activities thanks to a more flexible legislation. The Parisian metro-operator, RATP, now operates Algiers’ new subway that has been built by Alstom. Strangled on their domestic markets and in Europe, French companies are eager to expand in North Africa where they can penetrate close, large and easy markets.
A Fragile but Hotly Competed Market
With a population of 35 million people, Algeria is by far the largest market in North Africa. Its growth potential is huge despite the long-term heavy sequels of the civil war. In October 2013, the announcement that Algeria is taking part in the loan floated by the IMF with 5 billion dollars symbolizes what has been accomplished since 1993-94 when Algeria was forced to negotiate Stand-By Arrangements with the IMF and a debt-rescheduling package with the Paris-Club group of creditors. It also reflects the growing financial capacity of Algeria and its ability to play a key role in the Mediterranean, North-African and even sub-Saharan Africa.
Algeria has dramatically increased its foreign currency reserves (now around 1200 billion dollars) 2012 due to its strong hydrocarbon revenues. Therefore, in 2011, the Algeria sovereign fund, replenished by these revenues, culminated at 57 billion dollars. However, this must not hide certain weaknesses. Algeria seems still to hesitate between, on the one hand, the continuing liberalization of its economy, free-trade and compliance with the international norms that rule the financial sector, and, on the other hand, a sort of State-capitalism that grants the government a major role in all sectors of economy.
The “49/51%” ownership rule, which requires a 51% Algerian share in foreign direct investments, is considered as an obstacle by many foreign investors, even though it did not prevent a lot of foreign companies from moving into Algeria. Then, the government’s efforts to diversify the economy from hydrocarbons, which are still the backbone of the economy, have not yet produced much effect. Finally, the explosive social situation characterized by massive youth unemployment and huge housing demand that provoked sporadic riots, captures recurring public grants (more than 23 billion in 2011) and highlights the lack of redistribution.
Even though the domestic situation remains fragile, Algeria’s wealth gives the country the ability to choose its partners. Algeria does not want to depend economically on only one partner anymore, and particularly France, with whom it has had tumultuous political relations. Algeria’s market size and the business opportunities that exist there stir up the appetites. Over the last decade, the foreign investors coming from Southern Europe or Turkey have flourished. The Arabs, like the Egyptian telecom company Orascom with Djezzy or Gulf Bank, came very early on, in the late 1990s, when the security was not provided throughout but new president Bouteflika encouraged foreign investment.
Nevertheless, China is now the most important and growing foreign investor in Algeria. China that ranked second behind France (but first by some months) contributes to the funding of most major projects and leads the construction boom: the country’s largest prison, a new airport, malls, thousands of homes, etc. A Chinese state company is building two-thirds of Algeria’s 745-miles-long east-west highway, which is the longest in Africa. All that represents around 20 billion dollars in government construction contracts. China’s role in Algeria is now most significant since Mao supported the newly independent country all along the 1960s. Very recently and after protracted negotiations, the Chinese company HNA bought 48% stake in Paris-based airline Aigle Azur that holds 43% market share in Algeria.
A Cloudy Future?
According to many Algerian entrepreneurs and policy-makers, France is no more the adequate partner nowadays. French companies are known to be ‘chilly’ compared with Americans, Chinese or Turks that are all more pragmatic. Moreover, many Algerians do not understand why the French do not use much more of the resources of the Algerian diaspora in France. Through immigration and television, Algerians are strongly connected to what happens in France, to the French politics and the recurrent Algeria- or Islam-related issues that occur in the public debates.
Fitch Gives Morocco ‘BBB’ Rating
Global rating agency Fitch has affirmed Morocco’s Long-term foreign currency Issuer Default Rating (IDR) at ‘BBB-’, Long-term local currency IDR at ‘BBB’, and Short-term foreign currency IDR at ‘F3′. The agency has also given the North African Kingdom a “stable outlook” and affirmed the country ceiling at ‘BBB’.
Morocco’s ‘BBB-’ rating is supported by a strong macroeconomic performance, as evidenced by low inflation, sustained GDP growth and general government debt (39% of GDP) in line with rating peers, says Fitch. Recent success in managing the political transition has underlined Morocco’s political stability. Economic dependence on Europe (60% of current account receipts, 80% of foreign tourists and remittances and 50% of exports in 2011) and on oil imports contributed to higher fiscal and current account deficits in 2011 and represent significant downside risks. However, Fitch expects these ‘twin deficits’ to begin narrowing this year, supported by recent and prospective measures to reduce fuel subsidies, and supporting the Stable Outlook.
Real GDP growth remained strong at 5% in 2011, supported by accommodative economic policies and structural reforms, and despite economic difficulties affecting Morocco’s main economic partners in the eurozone. Growth has slowed in 2012 due to a decline in agricultural output, but non-agricultural growth remained at 4.2% in Q212. Assuming a rebound in agriculture, and some recovery in the eurozone, Fitch expects GDP growth to recover to 5% by 2014, in line with performance in the previous decade, supported by new investment projects. The main risk to the forecast is worse than expected performance in the eurozone, especially given Morocco’s much more limited room to support domestic demand now compared with 2009.
High oil prices in 2011 and 2012 have pushed the current account to a large deficit (7.2% of GDP expected in 2012 after 8% of GDP in 2011) and international reserves have declined markedly to an expected 4.1 months of current account payments (CXP) by end-2012 from 7.1 months in 2009. However, Fitch forecasts a gradual improvement in the current account deficit, primarily due to lower oil prices (forecast at USD100/barrel in 2013 and 2014 from USD110/barrel in 2012) as well as a pickup in exports. Under this scenario, international reserves would stabilize by 2013 at four months of CXP and net external debt, which has been increasing, should also stabilize. Morocco has obtained an IMF Precautionary and Liquidity Line (PLL) worth USD6.2bn (1.4 months of CXP) over two years. The authorities do not intend to use the credit line and see it as insurance against a potential extreme scenario.
The central government deficit increased markedly to 6.2% of GDP in 2011 after 4.7% in 2010, primarily reflecting the increased subsidy bill (6.1% of GDP) as a result of higher oil prices. The authorities have started to reform the universal subsidy system (caisse de compensation) and administered oil prices were increased by 16% in June 2012. Fitch projects the budget deficit to decline gradually (4.8% of GDP in 2013 from 5.5% in 2012) in line with the recently announced budget and in the medium term as the subsidy reform progresses. General government debt would stay in line with rating peers at the 2014 horizon. Rising spending pressures following the institutional changes in the wake of the Arab Spring increase implementation risks to the projected tightening.
Morocco has been the most successful country in the region in responding to popular demand for change following the Arab Spring. Under the terms of the new constitution, the King appointed the leader of the dominant party in the newly elected Parliament (the Parti de la Justice et du Developpement) as head of the government in January 2012. The government has taken a gradual reformist approach and its first policy steps suggest continuity in terms of economic policy.
The Stable Outlook anticipates improvement in the fiscal and current account deficits, consistent with Fitch’s central scenario, supported by successful implementation of the subsidy reform and continued high growth.
In contrast, inability to correct the large central government and current account deficits, further erosion in the international reserves position and a material weakening of economic performance in the face of external shocks, such as weaker than expected eurozone performance or higher than expected oil prices, would be rating negative. In the longer term, Morocco’s ratings would benefit from improvements in key social indicators (poverty, GDP per capita, youth unemployment) that are relatively weak compared to rating peers.
Algeria reach highest ever position on Fifa rankings
Algeria moved up five places in November’s Fifa World Rankings to number 19, their highest position since the system was launched in 1993.
Their rise was helped by their 2-0 win over Libya as the Desert Foxes qualified for next year’s Africa Cup of Nations in South Africa.
Remember folks the can have not happened yet so algeria can go up further.
wouldn’t it be ironic that algeria could surpass France in Football. In past years algeria has bleed players to france. right now France is 18 algeria is ranked 19
Algeria Municipal election
Local elections are to be held in Algeria on November 29,2012
1,541 municipal councils and 48 general [wilaya] councils
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3800 athletes took part in the 4th International Marathon of Algiers
ALGIERS – 3800 including 50 foreign athletes from 25 countries took part in the 4th International Marathon on Saturday in Algiers ran Dely-Brahim (Algiers), organized each year “International Sports Events.”
The race coincides with the 58th anniversary of the outbreak of the Algerian Revolution and festivities celebrating the 50th anniversary of the recovery of national sovereignty concerned the different age groups ranging from 12 to 76 years,
It should be noted that this fourth marathon Algiers was attended by athletes from many countries, including the United States, Japan, Ukraine, Italy and Morocco.
The Director General of “International Sports Events” Rezkane Abdelmadjid, pointed out that the marathon Algiers begins to grow, particularly in terms of foreign participation.
“From the next edition, microchips will be in accordance with international standards, provided to all athletes,” he said.
please visit andalousy.com
Even if all you understand is English use google translate. Comic designs sould be developed. Who know there might be algerian cartoon movies. inspector taher and so on.
Comics made by algerians
burnoose de david
Batna, minuit, un 1er Novembre
Batna, minuit, un 1er Novembre.
Batna, midnight, November 1st
Hebbache Lyes, our photojournalist, was last night in Batan to cover the ceremonies on November 1st. Patna, the capital of the Aures, the cradle of the Revolution of 1954, known from 0:01 spectacle of sound and light, with the participation of soldiers of the ANP.
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