Algeria fails on using oil money: experts

Algeria failed on exploiting exceptional incomes of its oil exports in the last ten years. Oil incomes use in infrastructure sector will not achieve big results to the national economy, according to experts.

• Energy specialist Djamel Djerrad said the government should support production system and increase competition between Algerian public companies.
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• “That would guarantee a real growth out of hydrocarbons and a real protection against exterior shocks,” he told a conference in Algiers.
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• “Oil taxes should be used in the most profitable and long-standing sectors such as small and medium-sized, higher research, innovation, agriculture, industry and information technology companies,” he added.
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• He believes that those sectors can create resources and a large number of en jobs. They also enable to control imports bill which has hit $40 billion for the third year.
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• The expert criticised the government’s enthusiasm to follow countries which allege that they will transfer technology to Algeria.
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• “We should be careful about this trap. There is no country in the world which accepts to transfer its technology to another country unless this technology is outdated,” he said.
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• Energy expert Khaled Boukhlifa said the government should follow a wise spending policy by using an import part of oil incomes in productive sectors.
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• He added that oil taxes represent 80 percent of taxes value in Algeria. “That constitutes a real danger is oil prices fall. The domestic product will decrease and budget deficiency would increase.”
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• Speaking about the exceptional profits due to Anadarko, Khaled Boukhlifa said the issue has no legal base and the American company should respect the Algerian laws.