Investment Base 51/49, instability of legislation the most important obstacles to foreign investment in Algeria, U.S. Official says
Henry S. Ensher, the US Ambassador to Algiers. Photo: copyright
A large participation of American companies is recorded in the 47th edition of Algiers International Fair, as their number will reach 100 for the first time in the history of trade and economic relationships between the two countries, Douglas Wallas, Commercial Attache at the U.S. Embassy in Algiers says in a conference.
“United States of America will be the guest of honor at the 47th edition of Algiers International Fair. This confirms the progress in trade and economic relationships between the two countries. Total U.S. exports to Algeria reached 2.3 billion dollars last year. There is a strong desire among U.S. companies to invest in the Algerian market in sectors outside energy, but they are reluctant because of the bureaucratic hurdles, the instability of economic legislation, lack of clarity in the Algerian market, fears that were created by the imposition of the investment base 51/49 in the supplementary finance law for 2009 and the limited role of the private sector in Algeria.”
“Economic relationships between the two countries that were traditionally relied on the sectors of energy, agriculture, aviation and security solutions, are diversified in many sectors over the last decade.”
“Algerian economy is expanding at a positive pace, but the bureaucratic hurdles do not allow to attract foreign direct investments, including American, in particular. Consultation with the local private sector can create good legislation in the world of business, that can become incentive to attract foreign direct investments, and especially U.S. small and medium-sized enterprises which represent 20 % of the GDP in the United States.”
“Number of obstacles repel foreign direct investment, especially the base of investment 51/49, which is the biggest point of alienating investors, in addition to the strong intervention of the government in the economic sector, lack of transparency in the economic sector and the obstacles to the process of turning a profit towards the outside, as well as the absence of a strong legislation to protect the intellectual property, which is the key in bringing companies that are operating in the field of technology.”
“Sectors which is a priority for U.S. investments in Algeria is health, agriculture, transport, railways, technology, tourism, construction and energy. An important Algerian delegation will participate next September in the gallery of water technology, which will be held in New Orleans.”