Purchase OBG Publications

Technological advances over the past decade have played a fundamental role in transforming business practices and promoting a new digital culture in Algeria. A major shift in Algeria’s IT landscape has taken place following the arrival of 3G and 4G technologies, with the internet penetration rate jumping from 25.6% in 2014 to 71.2% by the end of 2016. Although still under consideration, the approval of the proposed telecoms law could help boost investment and new projects, while expansions of fibre-optic networks and international submarine cables will solidify the country’s internet connections, in turn opening possibilities for innovation, start-ups and partnerships. This chapter contains an interview with Riad Hartani, Strategic Technology Adviser, Algiers Smart City project.

Meeting the demand for transport infrastructure in Africa’s largest country is a priority for the government. The current five-year development plan includes a major sector reconfiguration programme that allocates around €6.9bn to the upgrade, extension and construction of strategic segments, primarily maritime and rail. Traffic congestion and overdependence on road transport, inefficiencies in maritime freight management and a growing demand for urban transport are among the priorities to be tackled, as well as the construction of El Hamdania deepwater port, which will establish Algeria as a maritime hub. The rapid rate at which urban areas in Algeria are developing has led to an expansion in public transport construction between major cities. Since establishing the first metro line in 2011, the country has installed tramways and a dense network of bus lines, and is pushing ahead with additional development of both hard and soft transport infrastructure. This chapter contains interviews with Bernard Arkas, Executive Vice-President, Arkas Holding; and Wissam El Moukahal, CEO, Entreprise de Transport Algérienne par Câbles.

Major projects in transport and housing are in the pipeline, though a flatter rate of expansion and an increased focus on priority projects are expected due to investment cutbacks. Affordable pricing is of the utmost importance. In late 2017 the government stressed that housing and infrastructure development are key priorities, and the 2018 budget will see an 8% rise from 2017 in funding allocated to social transfers, including social housing. Thriving revenues from hydrocarbons led to a period of widespread residential building in Algeria, with the housing segment leading the construction sector as the largest market in 2011-15, accounting for 41% of the total. Sustained growth is forecast until 2020, driven by an urbanisation expansion rate of 2.7% and a rising population. This chapter contains interviews with Abdelghani Zalene, Minister of Public Works and Transport; and Rabah Guessoum, CEO, Algerian Industrial Cement Group.

As Algeria looks to curb its imports in the face of declining state revenues, the agriculture sector is well placed to contribute. Output improved between 2007 and 2017 thanks to efforts to clear some of the bottlenecks that have traditionally held back the sector’s development, such as legislation, land ownership and financing. Agriculture accounts for around 13% of GDP and employs some 11% of the country’s active population. Foreign investors are helping to speed up the development of large projects in face of population growth and rising demand, and as a way to move away from small-scale farming methods. This chapter contains interviews with Abdelkader Bouazghi, Minister of Agriculture, Rural Development and Fisheries; and Abdelwahab Ziani, President, Confédération des Industriels et Producteurs Algériens.

While the economic contribution of industry is still relatively small, many of the key building blocks for a successful industrial sector are already established, with abundant energy reserves, mineral raw materials and infrastructure. Some segments of agri-business are well developed, and activity in heavy industrial such as steel and cement production is rapidly expanding. As the largest country in Africa, and home to a variety of topographies and geologies, Algeria has substantial mineral reserves. However, these are currently underutilised; the sector has attracted relatively little investment in recent decades, and as much as 60% of the territory has yet to be adequately explored, according to local estimates. While Algeria’s size and the need for infrastructure to exploit large mineral reserves in remote areas present a challenge for development, the government is keen to promote mining as part of broader diversification efforts, and the new mining law should help to attract investment in this regard. This chapter contains interviews with Philippe Monestes, General Manager, Nestlé Algeria; and Amine Melouk, General Manager, SAREL.

Production at maturing oil and gas fields is encouraging Algeria to consider new approaches with regards to its hydrocarbons potential. In line with rising demand for electricity, the country has invested significantly in the power sector over the past 10 years. With rising domestic consumption and growing environmental awareness, solar energy has come to occupy a more prominent role in the development of the energy mix. This chapter contains interviews with Abdelmoumen Ould Kaddour, CEO, Sonatrach; and Tobias Becker, Senior Vice-President and Africa Director, ABB.