Algeria takes steps to improve business environment
Algiers-A tripartite meeting between government, employers and the syndical federation in Algeria led here on Sunday to practical decisions to boost the national economic.
PM Ahmed Ouyahia admitted, at the opening of this meeting, that the business climate in Algeria was not conductive to private investment despite government efforts to remove obstacles for its improvement.
After several long hours of discussions between economic actors in Algeria, with the presence for the first time of the Forum of Enterprises’ Chiefs (FCE), the leading organization of private employers in Algeria, several measures were announced.
First decision made to satisfy the producers: Importing their raw materials will be facilitated. The controversial documentary credit (Crédoc), which slowed their supplies abroad, has been lifted.
The Crédoc imposed since 2009 to all importers producers to initiate the opening of a documentary credit by contacting their bank then pass on that of the seller to ensure the exchange.
The importer is found with blocked funds sometimes up to three months before receiving the goods with regard to paperwork delays. Its removal was one of the main demands of employers.
On Saturday, Chairman of the FCE Réda Hamiani urged the authorities to treat fairly the public and private actions to remove the measure which inhibit the activity of producers such as the Crédoc.
Authorities also announced that they will endorse now 2% of total 5.5% of interest’s rate applied to investment credits for PME, according to the final communiqué issued after the meeting.
“Government officially says that the business environment needs improvement. Algeria is ranked 136th among the 183 countries according to ranking on business climate established by the World Bank demanded by Algeria Bank”, PM Ouyahia said.
“I decided to speak publically about this issue to ensure that government as not locked in a positions of a winner. There are achievements in the economic sector which should be reported as there are shortcomings to be overcome”, he added.
According to Ouyahia, the state remains the largest investor in Algeria with $14 b spent in development since January 2010.
Another meeting between government, employers and the syndical federation on social issues is scheduled for September.
Last tripartite held in December 2009 set the national minimum wage (SNMG) at 15.000 DA (150 Euros).
It has not been revised since that meeting but systematic strikes launched since the beginning of 2011 push the government to grant large wages’ increases in public sector up to 70% with some retroactive cases in January 2008.