Minister Ben Bada to Echorouk : small and middle-sized enterprises create 1.5 million jobs in Algeria

Small and middle-sized enterprises in Algeria created 1.5 million new jobs since 2004 while the private sector has the lion share compared to public companies and handicrafts, according to the Algerian minister of small and middle-sized enterprises Mustapha Ben Bada.

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• The number of the enterprises is estimated at 519,526. Of them, more that 300,000 are private while 626 are public.
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• Debts ban needs political decision
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• Mustapha Ben Bada said small and middle-sized enterprises in debt need a political decision to settle their situation. “The meeting held between banks and enterprises in debt came up with the necessity of dealing with cases separately.”  
• He also said many enterprises are exposed to the risk of bankruptcy because they did not settle their situation towards banks at time.  
• He sounded the alarm over the value of the debts estimated at 200 to 300 billion DZ.
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• Provincial investment funds
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• Ben Bada said the government plans to set up investment funds run by public banks and funded by the public treasury.  
• “The decision of establishing provincial investment funds came following a meeting held by the finance minister with ten public banks.” 
• “Some procedures must be corrected and facilitated to encourage people to invest through small and middle-sized enterprises,” he added. 
• The minister said his ministry will submit a request to the finance minister Karim Djoudi to increase loans value to 200 million DZ from 50 million DZ. “It is an additional step to convince banks in the necessity of funding small and middle-sized enterprises projects.”
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• 400 small and middle-sized enterprises enter import field
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• A total of 400 small and middle-sized enterprises kept their position in the foreign market by entering export field. “Yet, some of them do not have control over continuity and regularity.” 
• The minister believes that the priority must be given to the domestic market to cover all its needs. “That would make the State avoid importing and provide it with hard currency.” 
• “I am sorry that Algeria did not take advantage from the market opening after four years since the partnership agreement came into force.” 
• “National companies do not have yet the capacity of exporting. They ignore the nature of the foreign market and standards.”
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• Action plan to promote small and middle-sized enterprises
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• The ministry of small and middle-sized industries prepared a plan of action to be submitted to the Prime Minister Ahmed Ouyahia soon. It includes 30 preliminary procedures and proposals as part of the market organisation. 
• The procedures will deal with funding, real-estate, market organisation, human development and media technology. 
• Earlier, Ben Bada met with the finance minister and six public banks to discuss the proposals. A working group was set up and four secondary committees were created. 
• It was also proposed to establish three industrial zones by 2010.
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