Government: “Incentive measures to boost national production and curtail imports”
The Algerian government has taken a string of incentive measures aimed at spurring national production and reducing imports in a bid to safeguard the national economic potentialities.
- Under the new incentive measures, the government decided to allot a preferential rate of 25% to all national enterprises in their bids to conclude public contracts for the supply and commercialization of Algerian-made products.
- It should be noted that all the foreign private companies based in Algeria which abide by the Algerian laws and regulations will also benefit from this preferential treatment.
- The government’s declared objective is to shield the national production from a damaging “invasion” of foreign-made products in all fields of endeavour as part of an action-plan designed to give a solid impetus to national and local production.
- As a matter of fact, Algeria is intent on modernizing its infrastructure and by so doing boosting its economic growth. In order to further encourage growth the country is seeking to diversify its economy which is heavily reliant on hydrocarbons by developing both the traditional sectors such as agriculture and services such as tourism and ICT.
- Foreign Direct Investment represents a relatively small share of the total investment in Algeria at present and one objective of the new industrial strategy is to increase this.
- Increasing FDI is especially important because it has a significant impact on the transfer of technology and improvements in innovation capacities.
- Another key economic objective is to strengthen domestic consumption and move towards less reliance on imports and increase its own exports.
- Job creation is a priority and in recognition of the central role played by the private sector, particularly SMEs, Algeria has initiated a major programme of reforms to transform the framework for production and the structure of the national economy.
- The aim is to improve the competitiveness of domestic enterprises in international markets.