Algerian Government To Drop Investment Rule 51/49 On Auto-Factories

The investment in installing cars outside the strategic sectors that are concerned with maintaining the investment base 51-49 is expected to start from the year 2020, and new dealers and international brands that are well known and have a good reputation in the field of installation are expected to enter the Algerian market as well.

This decision will redefine the features of the car industry in Algeria starting from June 2020, after a 4-year experience that has veiled huge corruption that prevented the creation of a real industry and devoted the policy of inflating wheels, as negotiations will be opened with foreign parties starting from January 2020, and they may sign projects at the beginning of June 2020.

Chairman of the Algerian Chamber of Commerce and Industry, Abdelkader Ghouri, confirms in a statement to Echorouk that bringing new investors in the auto-installation sector in Algeria will be after the appointment of the new government and the entry of the Finance Law 2020 into service, and after preparing the list of non-strategic sectors in the field of foreign investment that are concerned with raising the investment base 51-49, in addition to completing administrative appointments and folding the file of legislative elections, which will postpone the issue of the entry of new factories for installation, according to the same speaker, until June 2020.

“We will contribute as a chamber of commerce and industry in bringing new investors in the field of installation sector, but today the file is postponed to June 2020″, he added.

“The success of the presidential elections in this sensitive circumstance is a positive step and sends optimistic messages to those wishing to enter the Algerian market, and this step in itself will contribute to reassuring foreign partners who want to enter the Algerian market”.

“The corrupt capital prevents many foreigners from entering the Algerian market and investing there, but providing guarantees about the level of political stability will attract them to invest in Algeria”.

“The auto-installation sector is expected to be outside the list of strategic sectors that will include only the economic sectors that include wealth such as oil wells and mineral mines and excludes automobile installation factories that will be open to investment for all, which will motivate foreign partners to come strongly to Algeria and invest in this field, after the failure of the first investments that “rotted” due to the major corruption cases that Algeria has experienced since 2017 in the installation factories”.

Minister of Industry and Mines office contains many files for establishing car factories that did not see their way into the light during the rule of President Abdelaziz Bouteflika, where officials of the Ministry had previously confirmed that more than 20 requests were awaiting a response, while the previous government froze the granting of licenses and was satisfied with the dealers who were active the market, and most of whom are now imprisoned in Algiers El Harrache prison in corruption cases.