Lagarde: hydrocarbons provide only 2 percent of jobs in Algeria

Algeria’s oil and gas incomes only provide jobs for about 2 percent of its population and account for around 40 percent of Algeria’s total GDP, 98 percent of exports and about two-thirds of budget revenues, according Christine Lagarde, Managing Director of the International Monetary Fund.

“I am reminded of an Algerian proverb ‘One hand cannot applaud alone’. More extensive reforms are needed, especially reforms that will make it easier to start and to manage a business. This will go a long way toward allowing entrepreneurial spirit to flourish, including for small and medium-sized enterprises,” said Lagarde Thursday on a visit to Algiers.

“Complex regulations have held back private sector job creation and growth. Despite government steps to address some issues, there is, quite simply, still too much red tape. Let me give you a couple of examples. It takes 14 procedures and 25 days to start a business. 451 hours each year for a business to pay its taxes and 630 days to enforce a contract,” she added.