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In conjunction with Mazars, OBG explores the taxation system, examining Algeria’s investor-friendly environment. OBG talks to Samir Hadj Ali, Chartered Accountant and Managing Partner, Mazars, on Algeria’s voluntary tax compliance programme.

Over the past five decades Algeria has made significant progress in the provision of health care to its citizens and tackling communicable diseases. Although basic health indicators have improved and living standards have risen, the country has witnessed an increase in chronic diseases, a common occurrence in a number of emerging markets, and these now represent the main burden on the health care system. While many countries in the region struggle to finance health infrastructure and services, Algeria – on the back of years of high oil revenues – has been able to divert significant funds into the expansion of clinics, hospitals and preventative care in a bid to improve overall health indicators. Algeria continues to pursue its ambitions to upgrade the overall quality of education nationwide. Although results are slow to come by, the sector has made some headway over the years with school enrolment rates at the primary and secondary levels exceeding 97% and illiteracy rates dropping to 14% in 2014, down from 22% in 2008. This comes on the back of sustained efforts on behalf of the government to boost schooling capacities through enhanced infrastructure, teacher training, aligning offerings with the needs of the job market, as well as reaching out and raising awareness on the importance of education in disadvantaged areas. This chapter contains interviews with Abdelmalek Boudiaf, Minister of Health; Habib Bennaceur, ‎North West Africa President, AstraZeneca; and Mohamed Mebarki, Minister of Training and Professional Education.

In the face of declining revenues on the back of low oil prices, Algeria has renewed its focus on economic diversification, with tourism – among other sectors – being viewed as a key source of potential alternative revenues, as well as a vehicle for job creation and rural development. To that end, government priorities include accelerating hotel construction, improving personnel training, raising service quality and facilitating investment promotion. Global tourism indicators bode well for the future development of the industry, and with the volume of planned public spending on bed capacity, private partnerships and training, Algeria should be well placed to capitalise on these projections. The future development of Algerian tourism will depend on its ability to tap into such opportunities and focus on new trends such as rising purchasing power and the shifting demographics of travellers. Identifying such trends and distinguishing between the different categories of potential visitors will be crucial in determining the type of developments and offerings that are required to cater to each category. This chapter contains and an interview with Amar Ghoul, Minister of Tourism.

A drive to improve food security, coupled with weakened oil prices worldwide, has prompted Algeria to accelerate its planned agricultural reforms over the next five years. To that end, in 2014 the government announced plans to spend AD300bn (€2.8bn) each year on agriculture as part of the Public Investment Programme 2015- 19. However, some key challenges must be addressed. In this respect, government-led efforts to increase the area of irrigated land, encourage the use of fertiliser and promote uptake of new farming techniques constitute a big step forward. In the coming years, water usage is expected to play a central role in sector development plans, given the challenges posed by Algeria’s hot, dry climate and the government’s declared intention to intensify local production levels as a means to reduce the country’s reliance on food imports. This chapter contains interviews with Sid Ahmed Ferroukhi, Minister of Agriculture, Rural Development and Fisheries; and Kaci Ibrahim, General Manager, Ifri.

With a population of 39.5m, concentrated along a narrow strip of coastline, along with comparatively high rates of consumption and a push for investment in fibre backbone infrastructure, Algeria offers significant potential for telecoms operators. Since the launch of 3G mobile internet services in 2013, operators have continued to roll out 3G networks across the country, with one aiming to cover all provinces by the end of 2016. The sector is now preparing for the launch of 4G long-term evolution mobile networks, on which telecoms firms and the authorities have begun to complete some preliminary work – though the government is keen to ensure that operators are capable of making the necessary investments before doing so – as well as legislative reforms, which among other measures could open up the monopolistic fixed-line segment. The IT sector appears to be on the cusp of a new stage of growth. The launch of 3G at the end of 2013 has led to rapid growth in internet access, and the planned launch of 4G and the rollout of fibre should further boost uptake. A new submarine cable due to enter into operation in 2016 will boost national bandwidth – already one of the highest in the region – and a planned ICT law may lead to increased competition, bringing down prices in the fixed segment, while fixed 4G long-term evolution services are being made available in areas where DSL access is difficult. This chapter contains an interview with Azouaou Mehmel, CEO, Algérie Télécom.

New capital projects, from upgraded port facilities to multi-lane motorways and underground metros, have been a hallmark of Algeria’s transport sector in recent years. While bottlenecks persist – including an over-reliance on road transport and limited rail connectivity – generous public spending on transport infrastructure, largely funded by oil and gas revenues, has ensured continuous development in the sector since the early 2000s. Private investment has taken a leading role in the transport and communications sectors, accounting for 83.5% of total spending in 2014 and contributing €14.2bn to GDP, up from €8.6bn in 2010 and €7.6bn in 2008. While the sharp decline in hydrocarbons revenues since 2014 is leading the government to re-evaluate spending priorities, it appears to remain committed to maintaining capital investment in transport. The government’s latest five-year plan, which accounts for the 2015-19 period, allocates AD832.7bn (€7.7bn) to the transport sector, ensuring significant continued development of transportation networks in the coming years. This chapter contains interviews with Boudjema Talai, Minister of Transport; and Yacine Bendjaballah, CEO, National Company for Rail Transport.