Peugeot Renault and Volkswagen, potential investors in Algeria
The Minister of Industry, Small Business and Investment Promotion has drawn a lot of prospects for the sector in his speech yesterday to the press center of El Mujahid. The minister recalled that the industry had begun a sort of rehabilitation work that should lead businesses to be part of international competition. The change that is currently living the global, through consumption information and consumption of brain, increases significantly. Algeria can not stay out of this movement. The promotion of human resources, investment in innovation is considered a commitment to business competitiveness, the actions implemented in the development of quality infrastructure, support for accreditation, support for certification, standardization are all acts establishing a new vision of industrial development in the country coming into line with the reclassifications affecting businesses today, as nations. Business success will depend, the Minister has clearly pointed out, mobility, quality of their strategy, qualification and motivation of their human resources. It is in the development of an industrial policy that explicitly incorporated all of these issues. The State, and it was his ambition and his vocation, fosters a productive orientation of growth by specific incentive policies. The minister recalled to the fact that investment and therefore growth, could not always come from public spending, but private investment should take over. The state has settled a part of all currently approved for the investment to enter into the logic of win-win. The public-private partnership can promote the commitment of the economy in the sense of international competition, as soon as the rule of the game is known to all, and that
benefits to be gained may be palpable. However, in terms of investment, two major European companies specialized in building
Car: Renault and Volkswagen, have just become aware after great reflection of the interest they could get in the Algerian market, the real ticket into the African market.
A. T. M Renault Algerie.
The revival of the industry requires government support but also a”mobilization of national public and private companies,”said yesterday in Algiers, the Minister of Industry, Small Business and Promotion of investment, Mohamed Benmeradi.
“The revival of the domestic industry must be based on state investment but also a contribution and mobilization on the part of national public and private companies in all categories,” he said at a conference Press lively forum of El Mujahid.
He felt, in this context that “the support of economic growth through public spending has produced only limited effects”, adding that” now, companies are expected to contribute to the recovery of the national tool production “.
“The intense stimulus programs and support services launched by the Government since 1999 have resulted in an illusion of growth,” he said, adding “when we see that 33% of GDP is spent on the Investment is expected to very important results. “ Renault Algerie DZ . “Devoting more than 30% of GDP growth in developing countries where it is done well, means the annual rates of 10 to 15%. Unfortunately, these results, we could not get them.
So the support of the growth in public spending had very limited effects, “he said. Regarding investment, the Minister explained that it is a mission of the State, especially that of economic operators, whether domestic or foreign. http://www.renault.fr/
“For twenty years, the national and foreign investment has not been up to what was expected. We are in a situation where there was very little investment.”
Mr. Benmeradi said, however, that rehabilitation programs launched by the State for public companies with strong potential, allowed the return of the latter on the market.
He recalled in this context, the cement sector, which is experiencing a real recovery, as well as companies BTPH some were able to form a consortium and won major contracts for the construction of roads.
He said the state will now support productive investment by providing support, including the bonus interest rates. With regard to partnership projects, the Minister said that joint ventures between Algerian firms and their foreign counterparts, including Germany, will be announced shortly in the mechanical sector.
He spoke on the other hand, a study is underway to determine the rates to be observed in implementing the national strategy for the revival of the industry over the next four years.
Finally, the Association Agreement between the EU and Algeria, he felt that balance is clearly negative, with a high trade deficit excluding oil and gas in Algeria, estimated at over two billion dollars. The tariff elimination under the agreement would have resulted in loss of resources for Algeria to 70 billion dinars, the minister said.
Benmeradi Mohamed, Minister of Industry, Small Business and Investment Promotion was yesterday the guest of the press center of El Mujahid. The Minister has devoted his speech to the situation in its sector to roll out the program of activities aimed, he says, support the development of industrial, domestic firms in the private and public sector, the outlook for them to capacity they are at the heart of the process of sustainable development and diversification of the economy.
The support of the State
The will, says Mr. Mohamed Benmeradi, is to provide all the support of the State in the creation and development of SMEs in the periphery of large industrial and contribute to the development of subcontracting major challenge the objective of economic diversification and job creation.
The minister hopes that we work to improve the overall investment climate in our country for a solution to all restrictions of any nature, which hinder or limit its development. What we can say c is that the Algerian industry suffers handicaps particularly damaging in the period of instability and severe competition in which we entered, it seems, for long.
Things are changing
The existence of an area “sheltered” large and inefficient for many years has placed the community on excessive costs. Things are changing slowly through the restructuring as was explained the minister. There is still an insufficient rate of renewal of the industrial, excessive weight of the administrative apparatus, a growing mismatch between the contents of the training and the needs of industry, banking sector is still too little oriented industrial development. Many of these disabilities may affect behavior, rather than structures.
The employment issue arises of course in a particular industry. The most important questions to ask in this great upheaval is how companies can evolve Algerian? What qualities should have our
Mobility, risk taking, renewal of the industrial Volkswagen
Mobility, risk taking, new industrial base, increased efforts for innovation, the language has evolved today, innovation competitiveness, quality, IP, R, are terms and concepts in use today to discuss the sector activity. We are, admittedly, at a time when the world saw impressive changes, where we saw other realities on all levels that require specific strategies, where it is imperative that we respond quickly, appropriately to these environmental changes we are seeing.
From 5% to 10% of value added Volkswagen Algerie DZ . The first consequence we might say, the outlook announced by the Minister should help to bring to the increase the share of domestic value added, currently 5%, for the climb at a rate of 10% by 2014. The Prime Minister argued this issue in its statement http://www.volkswagen.fr/fr.html policy in Parliament. Mohamed Benmeradi think it will act to do so as part of the revival of business investment in sectors that generate wealth and jobs, but also by the search for win-win partnership with the outside through technology transfer and know-how, opening foreign markets for businesses.
Restore the industry to the place that should be his
For Mr. Mohamed Benmeradi, industrial policy must restore the industrial sector in the place to be hers in the national economy in terms of wealth creation and to allow national industrial enterprises to compete and win back share market. Three tracks are so privileged. Promoting new industries structuring (automotive, ICT industry), a program of integration of sectors, the development of outsourcing in the engineering industry in particular, to develop synergies in linking institutions research and technology and business focused on innovation today remains, the minister, one of the most important determinants of competitiveness. On the other hand develop actions in terms of quality, certification and accreditation, standardization and integration firms in networks and international spaces.
The public sector revisited
The role of the public are reminded insistently by the Minister of Industry, but a public report to the viability and performance, according to a logic of profit working to eliminate bottlenecks that can slow down the initiative, encouraging tax activities with high added value and that precisely by using innovation. The reorientation of the banking sector to the financing of productive activities and services with high technological content, through the enhancement of partnership actions, reset the perimeter of the industrial sector and streamline its organization is a task that was required to be undertaken, taking care to also encourage private initiative.
Cement, but also drugs
The Industry Minister recalled in his speech yesterday at the press center of El Mujahid, the implementation of the rehabilitation process of public sector commercial industry has already been initiated by the treatment of a first batch of companies leading to the establishment of the cement in Algeria (IPAC) with an investment program of 141 billion dinars funded by the National Investment. This program focuses on the expansion of production capacity of 8.5 million tonnes of cement to have in 2020 for export capacity, the development of additional capacity for the production of aggregates (7 MT), promotion and production of concrete ready for use. Minister also referred to the other example is that of Saïdal, to be equipped with six new plants drugs, creating a center of bioequivalence and upgrade potential. The expected gains for budget earmarked to the tune of 16.71 MDA is to achieve a doubling of production, and gains on the import bill.
Mechanics, the other cluster
Mechanics is another area now eligible for restructuring in the direction of refloating a perspective of profitability and capital in partnership. 44 billion dinars will be committed to Bel Abbes, Complex combines, Constantine, through the complex public works vehicles, Tiaret through the complex automobile, which would be the real start. Algiers SNVI for a bus production estimated at 15,000 in 2015 (now 1500, and a subsidiary of activities) Wadi Hanin for a production diesel engine of 30,000 units, Annaba, Ferrovial, a partnership in the assembly of trams, Guelma in partnership for a revival of a production motorcycle, SNTA, through the modernization of its equipment. In the formal sector, the CPE shall be seized, according to the minister, for the creation of industrial groups through the restructuring of certain investments management companies. The area of electronics, electrical appliance, metal structures, steel, specialty chemicals, sanitary products, textiles and leather and wood are concerned. Cost: 300 billion dinars.
The SME stimulus for competitiveness
The SME is an axis of development, recently integrated into the Ministry of Industry. The SMEs should benefit from all the attention, a budget in excess of 380 billion dinars has been committed, in lieu of program upgrades . The first actions should be launched soon this month to allocate 20,000 SMEs, operating in sectors with high added value, mechanical, and electronic BTPH, fishing services.
The aim of the operation as described by the Minister is in the capacity of management and organization and improvement of quality systems, promotion of human resources and support material investment.
The first actions to upgrade will be conducted by the National Agency for SME Development (ANDPME).
Subcontracting, crucible for national expertise
Another focus for development, the promotion of outsourcing where it is envisaged to this end, the creation of a national center for the development of subcontracting as announced by the Minister. Under the five-year and 2014, eight regional and five nurseries facilitation centers will be open for the SMEs: cost of the operation 850 million dinars. The goal set by the government to make the investment engine growth remains a central concern.
The investment from the private
This is from the investment, as will be reported to the Minister of private initiative. Public investment from the state budget can not be used indefinitely, because growth is a business issue not the state budget. We know that the measures came Ouyahia bring new rules at the beginning misunderstood by some partners, but it seems now well understood and accepted. Former French Prime Minister Jean-Pierre Raffarin, special envoy to Algeria by the French head of state in the partnership between the two countries, noted here that Algeria was sovereign in its decisions. Jean-Pierre Raffarin reported Ouyahia measures on investment.
The national Auto et Voiture share is preferred
Mohamed Benmeradi recalled in his speech that the supplementary budget law for 2009 has established tools to better fit without curbing freedom of economic initiative. As such, national ownership is have a majority, as appropriate to reduce the transfer of currency. The bias was chosen. It is subject to tax and exemptions. To better understand the objectives, a national map of the investment is developed consisting of the development potential of the individual municipalities, the minister said. He added the work of ANDI, encouraged to promote an exchange of partnership.
Review priorities in the device-CNAC ANSEJ Mohamed Benmeradi tell all his disappointment devices ANSEJ-CNAC, voiture occasion algerie most often used to create micro relating to distribution activities, bakery, or transportation. There is scope to review many things in suggests the minister, to better direct investment into real productive investment. Benmeradi Mohamed also raised the issue of industrial zones and business parks and rehabilitation operations associated with them. 15 industrial zones and 35 areas of activity are involved in the program.
Spaces in ZI diverted from their intended
The Minister noted that industrial areas have been totally diverted from their purpose, making the air storage for operators having invested in such import. The Minister reiterated the commitment of the state to restore these areas in their vocation and to act in case of persistence on the part of operators, and warned for reappropriation by the State of the areas used outside of that provided by the specifications. The right of first refusal has been reinforced for that. In all cases, the amount of the aid budget for the rehabilitation of these areas has been calculated up to 19.265 million dinars.
Create conditions for competitiveness
The development of industrial zones built to create the conditions for business competitiveness, that is their vocation, including their networking and harmonization of research institutions. The rehabilitation program should go in that direction. The National Agency of intermediation and regulation (ANIREF) is required to ensure better regulation of industrial land on which there are tensions that we know and are obstacles to investment, potential investors complain.
Industrial land: to stop the waste
Mohamed Benmeradi in his answers to questions during the debate, had to mitigate this type of criticism, to speak of a waste of industrial land. The measures taken should release the areas likely to meet demand. The questions drive the quality system certification and product standardization and intellectual property, Algeria began to standards. Upgrading business is consistent is that of preparing the national competition. These are actions that are for businesses, by providing the long term. It basically raises the major problem of the preservation of the national tool of production.
A new program to upgrade
The previous programs have experienced constraints, the new program focuses on a target of 20,000 companies over 5 years. At a cost of 385.736 million dinars at the expense of the state divided into grants and interest subsidy. The minister These enhancements will be made on the loans. The program was adopted by the Cabinet and enjoys attention of the Head of State.
Innovation, industrial technical centers
The Minister also discussed the draft law on innovation, a draft decree establishing a national agency for innovation, another draft text on the status type of industrial technical centers to promote the competitiveness of companies. Each industrial sector is projected by the Minister, be provided with a center that would protect the area and ensure the emergence of comparative advantage. The project to create a technical center for the food industry, and another for mechanical engineering, is at an advanced stage, with texts being finalized. Statistical surveys will be conducted on eight priority industrial sectors: drugs, electrical, electronics, building materials, steel, metallurgy food. A study of competitiveness of industrial enterprises and their ability to export will be expedited, according to the minister, and a feasibility study for the development of platforms for SMEs. In the debate, the Minister has had to answer questions of participants. On the investor, the minister recalled the insistence of the authorities for private investment take over investment in public spending, the effect is very limited because the investment, is primarily the result of the company.
Focusing a question about investment in the automotive sector, the Minister expressed the will of two large firms Renault and Volkswagen have now expressed interest in investing in the Algerian market. The expression of interest of the French firm, Renault, date of four years. Renault had made proposals which were not considered satisfactory by the Algerian authorities. Renault returned later with new proposals.
Assembly, but not limited
The dynamics of this investment is not only in the assembly, said the minister. At first, there are two types of vehicles. Today the number is 4 vehicles. The level of integration will increase. The project is more acceptable. Conduct discussions with Renault and other partners is the process that is followed. Algeria is considered, said the minister, as a support for the African market.
Peugeot Algerie hurry to conclude
The VW is in the same steps to partner with education offerings. The partners are eager to enter, but the Minister believes it is still premature to conclude, we take the time to study the offers and benefits. On a question regarding the industrial land the Minister recognizes that this is a real problem. He added that the activity requires a rearrangement. www.peugeot.fr/Accueil/ This is the first step, he said. The second stage is to recover the spaces that have been released as a result of non-engagement of beneficiaries and non-compliance with the specifications. . Peugeot Peugeot Algerie DZ The state has a right of recovery. 9000 to 10,000 ha may be proposed. 700 to 800 acres are available in the area of Bellara. This leads to the minister noted that there was a lot of waste in the past and that the land supply exists
Algeria-EU: Algeria accepted the argument
Of the Association Agreement with the EU and the request made by Algeria on the free trade area, the argument was accepted Algeria, after a period of misunderstanding where we thought a challenge . The Association Agreement shall be allowed as adjustments to the interests of each other.
The Algerian market, other than a desk
The area of Arab Free Trade, Algeria has had to introduce restrictive admission lists of products from the area because they did not meet the designation of origin. These are the products marketed by some countries in the Algerian market that does not come from these countries, companies use their packaging only.