These Are Algeria’s Requirements to Macron for Achievement of Peugeot Factory

date 2017/05/15 views 580 comments 0

icon-writer By: Imène Kimouche/ English Version: Med.B

The head of the National Chamber of Commerce and Industry, Mr Gassi Ait Ali, stated that the negotiations on the Peugeot plant project in Algeria had been delayed by the "additional" conditions imposed by the Algerian Government on the French authorities, adding that this pending file will be soon on the table of the Government of President Manuel Macron.

A study that included the re-evaluation of the automotive market, which is on the agenda of the Premiership in Algeria, reveals that the large number of factory projects expected to be completed requires that the agreement from the start on promoting exports, as economic indicators point to the the saturation of the national market within a few years.

Mr Ait Gassi said in a statement to “Echorouk” that the Government decided to tighten the conditions for the development of automobile factories, following an assessment  study conducted on the market, which proved that if negotiations resume on the completion of all factories that have already been announced, there will be a registered surplus in the number of cars.

"Peugeot negotiations are only stalled, but the negotiations on all the factory projects in Algeria have been suspended for the time being and will be resumed only after the completion of the market assessment process," he underlined.

On the other hand, our interlocutor counted 400 thousand French-Algerian citizens who hold high-ranking positions and heads of institutions in France. 

The latter, he noted, contribute to injecting liquidities into the French Treasury and are an added value to the French economy, of which the Algerian authorities rely on so as to inject $ 10 billion dollars annually into Algerian banks. 

The World Bank statistics show that Algeria's cash-strapped community overseas, stood at $ 2 billion in 2016 in remittances, compared with $ 6.4 billion for Moroccans and $ 2.3 billion for Tunisians.

The number of French companies active in Algeria is estimated at 500, employing 140,000 people in direct positions and investing 200 million Euros a year, mostly in the sectors of fuel, automobiles, medicine, foodstuffs, building materials, finance and mines. 

The new French President Emmanuel Macron is counting on a solid partnership with Algeria to re-establish 1,000 dormant factories bankrupt since 2012, especially as Algeria continues to grow on a hard currency reserve of around $100 billion dollars and investments in infrastructure, facilities and infrastructure amounting to $ 1,000 billion, while France's private sector is indebted to the equivalent to 40 billion Euros.

He further asserted that the National Chamber of Commerce and Industry has worked out a large program for the export of high-grade products "Made in Algeria" to France shortly, with these exported products being destined primarily to the members of the Algerian community settled there.

  • print