Algeria: government has sold illusions of exports out of hydrocarbons since 2014

Algerians discovered that the government’s promises to diversify and export billions of dollars out of hydrocarbons were no more than illusions.

According to observers, the government launched promises as it thought the oil crisis would have ended in a short time. Yet, time shows that real alternative solutions should be found in Algeria’s economy.

Oil prices have decreased since June 2014.

Since then, the government has decided to export cement but Algerians did not see any exported cement neither billions of dollars from exports. Cement prices considerably went up and shortages were experienced.

Earlier in April, the government promised to start producing iron in Bellara complex in Jijel and increase El-Hadjar complex’s productive capacities. Bellara complex did not enter production phase.

The Algerian State paid $1 billion to an Indian partner to buy El-Hadjar complex. Yet, it stopped operating early this month due to drought crisis.

The government could not reach an acceptable exports volume out of hydrocarbons. Official figures show that Algeria’s exports out of oil and has were estimated at $1.24 billion between January and August in 2017.

Exports out of hydrocarbons consisted in semi-industrialized products ($893 million), food ($244 million), industrial equipment ($51 million) and raw materials ($43 million).

The government also promised to export cars but the dream has not come true so far.

Expert Ismail Lamas believes that the government was professional in giving promises to diversify economy and export products out of hydrocarbons. Yet, it was clear that exports out of oil and gas did not exceed $2 billion and most of them consisted in oil by-products such as fertilizers.

Lamas told Echorouk time shows that successive governments were just marketing illusion. “Many ministers and officials criticized experts for raising despair among Algerians. Now, it is clear that those specialists just said the truth.”