Continuation of the Status Quo Constitutes a Risk For French Companies

The President of the Algerian-French Chamber of Commerce and Industry, Michel Bisac, expressed concern about the continuing “stagnation” that characterises Algerian-French relations.

He expressed his fears that third parties might exploit this situation to strengthen their presence in Algeria at the expense of French interests, specifically China and the United States.

As a defender of the economic interests of French companies operating in Algeria, Michel Bisac said he hopes that political and diplomatic stability will return to bilateral relations, as this will have positive economic repercussions. He confirmed that he is working to achieve this goal.

The editorial of the French-Algerian Chamber of Commerce and Industry’s regular newsletter, signed by its president, Michel Bisac, read: “The French Chamber of Commerce and Industry has the duty to carry the voice of appeasement of economic pragmatism that allows us to move forward, regardless of the turbulence.” This approach aligns with the undeclared truce amid the recent escalating crisis between the two countries.

The Chamber’s president spoke of his concerns about the repercussions of the current situation: “The crisis between France and Algeria is mobilizing the Franco-Algerian Chamber of Commerce and Industry, which regularly expresses the concerns of economic actors in both countries and their desire for diplomatic understanding,” which remains absent due to the repercussions of ill-considered decisions by politicians holding the reins of decision-making in Paris.

France has lost many of its economic interests in Algeria since the outbreak of the crisis following Paris’s shift in position on the Western Sahara issue. This decision followed warnings from President Abdelmadjid Tebboune to his French counterpart, Emmanuel Macron, about the risks of such a move. Macron then outlined his position at the end of July 2024, causing an unprecedented crisis.

In a previous statement, an official from the same chamber said that the continuing deterioration in political and diplomatic relations “affects economic cooperation, particularly investments and the development of major French companies in Algeria.” He was referring to the Algerian authorities’ rejection of new demands by French giant Renault to reopen its Oued Tlélat plant near Oran (western Algeria), which has been closed for more than five years.

According to Michel Bisac, “The French Chambers of Commerce and Industry are special bilateral structures that bring together French and local business leaders, driven by their commitment to entrepreneurship and creating added economic value for both countries.” He stressed the importance of “maintaining this commitment.” However, some French investors have not achieved the desired results, focusing only on certain profitable sectors such as banking and services.

Since the crisis intensified and in the absence of diplomatic representation at the ambassadorial level, particularly after the departure of the French ambassador to Algeria, Stéphane Romatet, last April, the Chamber of Commerce and Industry, through its president, Michel Bisac, has played a notable role in raising awareness of the importance of stable bilateral relations for the future economic interests of French companies through occasional initiatives.

However, the crisis appears to be much deeper. Its president also warned against third parties exploiting the deteriorating state of bilateral relations to attempt to impose a new reality in which French companies would lose their interests. He pointed to the threat posed by Chinese and American companies, which remains relatively limited for the American side, given that its investments are concentrated exclusively in the energy sector.

Bosac considered that what unites Algeria and France is greater than what divides them: “Geographical, societal, and cultural ties require a solution sooner or later.” He noted that “the Algerian-French Chamber of Commerce and Industry is working humbly to mobilise and support goodwill on both shores of the Mediterranean. Its network of companies, partners, and member institutions regularly calls for greater understanding of economic issues and support for positive initiatives.”

Previously, two French senators, Akli Mellouli and Sabrina Sebaihi, visited Algeria early last month and met with Michel Bisac. They warned of the risks posed by the ongoing crisis in the relations between the two countries, due to the mistakes of French politicians and in the interests of French companies operating in Algeria. They met with consular officials at the French embassy and businessmen.