Purchase OBG Publications

Opportunities to invest in the health care sector continue to increase as the population grows at an annual rate of 2.1%, applying pressure on existing hospital infrastructure, especially in the urban centres where 72% of the population resides. The health infrastructure has made considerable strides in recent years in a number of important areas, nevertheless, there are still challenges in providing equal access to care across Algeria’s vast territory and overcoming the shortage of medicines. In line with a sustained government budget allocated to health, attracting new investment from the private sector will be critical for meeting the growing demand for health care. In regards to education, Algeria has maintained a high level of investment in recent years, despite the general economic contraction caused by the collapse of the hydrocarbons market in 2014. While the Ministry of National Education continues to focus on improving education practices and reforming teacher training, the Ministry of Higher Education and Scientific Research is concentrating on extending existing networks and institutions. This chapter contains interviews with Amine Sekhri, Country Manager, Roche Algérie; and Tahar Hadjar, Minister of Higher Education and Scientific Research.

A diverse land of thermal springs, mountains, historic sites, vast desert and unspoilt Mediterranean coastline, Algeria offers a remarkable variety of activities for travellers. However, a decade-long civil war ending in 2002 and an antiquated transport infrastructure network have curtailed growth in the tourism sector, alongside negative perceptions abroad and a cumbersome visa regime. The flip side of underdevelopment is that the sector has massive potential to grow with the right sort of political will in place. As evidence of the latter, the government is currently implementing its long-term development blueprint for the sector. Known as the Tourism Development Masterplan 2030, it seeks to increase the sector’s share of GDP to 10%. Four new hotels are to be opened in the wilaya of Algiers in 2017, bringing the total there to 182, and growth in room numbers has been recorded across the country. In short, Algeria seems to be making the right moves to ensure that the capacity is there to support rising guest numbers. This chapter contains an interview with Abdelkader Benmessaoud, Minister of Tourism and Handicrafts.

The Algiers Smart City initiative, established to advance multiple aspects of the tech industry, such as technology transfer, talent mobilisation and cross-sector synergies, demonstrates the benefit of approaching development from a less conventional perspective. Players in IT and other contingent sectors are increasingly aware of the opportunities created by adopting an approach to progress predicated on the adoption of leapfrog technologies and experimentation with new development models. However, the foundations for an ambitious and multidimensional project like this are only partially set, and Algeria will need to continue making conventional progress, particularly regarding its regulatory environment and economic policy strategies.

Algeria has witnessed significant progress in the development of its ICT sector in recent years. Following strong investment in the recent rollout of key ICT infrastructure, the country has also updated its legal framework and introduced a series of new regulations to accompany growth. While telecoms still dominate the ICT sector, signs of diversification, digitisation and cybersecurity efforts are combining for a positive outlook. In a large market that is ideally located between developed and developing countries, the country’s ample opportunities for growth for new players, increased competition and an educated workforce can turn it into a regional leader. This chapter contains an interview with Steve Tzikakis, President, SAP South Europe, the Middle East and Africa.

In an effort to meet the infrastructure needs of a growing population and facilitate increasing exports of industrial and agricultural products and minerals, the government sees a robust and stable construction industry as a key component of its vision for the future. Even as the overall economy has slowed, the sector has remained a consistent engine of growth. The building materials segment, which grew by 16.3% in the first quarter of 2018, is particularly promising as Algeria builds on recent investments in manufacturing plants and shifts its focus to scaling up exports. After a decade of rising prices, the Algerian real estate market experienced a gradual slowdown in 2017 and through most of 2018. This chapter contains interviews with Abdelwahid Temmar, Minister of Housing and Urban Planning; and Li Jian, Assistant President, China State Construction Engineering Corporation (CSCEC), and Chairman, CSCEC Algeria.

Meeting the country’s growing transport needs remains a priority, thus the national development plan 2015-19 allocates €6bn to upgrading, modernising and expanding air, rail, road and maritime capacities. Foreign investment is actively being sought to incorporate the latest technologies and know-how into the modernisation process. However, efforts to expand the sector face some challenges, such as a cumbersome and opaque bureaucracy, the effect of which is acutely felt in certain segments such as logistics, and the drop in international oil prices. However, evidence suggests that the authorities are actively seeking solutions to overcome these issues. The transport and communications sector remains an important contributor to the economy, accounting for 14% of GDP in 2017, up from 13.4% in 2016. This chapter contains an interview with Abdelghani Zalène, Minister of Public Works and Transport.