Bouchouareb: “Beware Of Parasite Foreign Investments”

The Minister of Industry and Mines Abdeslam Bouchouareb, said we could not accept any king of shady money from foreign investors, even if Algeria needs it so much.

Now, a strict procedure must be applied in coordination with the Ministry of Finance, to flush out fake investors who will benefit from the opportunities offered to them or investors with dubious capital to launder it in Algeria before allowing them to invest as part of the 51/ 49% government’s investment rule.

In this sense, the bill will regulate the framework of foreign direct investment so as to adapt it to the place of foreign capital in the national economy, Mr Bouchouareb underscored.

About this rule justly, much maligned by several diplomatic representations accredited in Algiers, which constrains the potential of foreign investments, the minister promised to enhance and to upgrade  the business climate in Algeria by making it more attractive with more facilitations, while rejecting the ball to the court of the Ministry of Finance for that purpose.

And accordingly, the industry and mines minister stressed that “the text provides for an overhaul of the legal system governing investment by adapting the regulatory framework for foreign investment in the rehabilitation of some procedures  contained in the ordinance on investment development”.

There is also the “mandatory use of local procurement to achieve the foreign direct investment (FDI) and the revision of rules and conditions for the opening of the capital of public economic enterprises to the national resident contribution “, he explained.

He also said that the authorities have again shifted to the reconstitution of incentives according to two directions, namely the regulation of advantages in line with the country’s economic policy and facilitation, or acceleration measurements. 

The goal is the establishment of a new structure for incentives based on three distinct levels. The first level relates to the Common provisions for all investors located outside the Highlands and the South of the country.

The second level concerns the specific provisions of a sectoral nature relating to specific additional benefits (sectoral legislation) for investments made in the context of the relevant sector or in activities within development-geared areas.

The third level focuses on the benefits that can be granted under an agreement promising projects of benefit to the national economy.

As for the “ANDI”, the new law will develop the National Development Agency of investments through the orientation of its missions exclusively to the accompaniment of the investor in achieving his project instead of supporting only the management of benefits and incentives granted to it.

Therefore, the “ANDI” Agency, will be permanently relieved of managing benefits, a mission that will be entrusted to benefits management center managed by a part of the tax service.

Regarding the decentralization of decisions, four specialized centers have been created containing all the bodies and directorates in relation to the creation of new projects.

This concerns the Advantages’ Management Centre, the Centre for formalities, the Support Centre for the creation and development of enterprises and the promotion center for opportunities and local potentialities.