Algeria is seeking major investment from international sources to
restructure its economy which remains oil based despite attempts to
diversify. In a recent announcement made during a visit to the USA in
early November, President Abdelaziz Bouteflika stated that his country
needs to attract between $8 billion to $10 billion inward investment
annually for sustained economic development. The government is
increasing public spending in order to stimulate investment.
The president also suggested a target of 7 percent annual economic
growth over the next decade to enable the Algerian economy to acquire
firm foundations. A major challenge is the high rate of unemployment
which currently stands at nearly 30 percent and disproportionately
affecting the country's youth. The government is giving priority to
measures designed at sustainable job creation with the key to which is
growth driven by investment.
Attracting Investors
To make the economy more attractive a reform programme has been
adopted whose elements include deregulation, restructuring of the
public sector and privatisation measures. A national debate has been
taking place over the extent that the privatisation should take which
has led to assiduous lobbying of the minister for privatisation,
Noureddine Boukrouh, who under new legislation has sole responsibility
for privatisation. A new ministerial body, the Council of State
Participations (CPE), is charged with drawing up a strategy and
approving details of individual sales.
Previously the government had stated its intention to sell stakes in
some 184 state assets through a phased process. A central aspect of
the economic reform package is the proposed hydrocarbons law pursued
by energy minister Chakib Kheli. The government's intention is to
radically liberalise and restructure the hydrocarbons sector, although
its plans have been amended after a consultation process with the
effect of limiting the scope of restructuring and slowing the pace.
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