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The banking industry in Algeria is characterised by a high level of stability and ample liquidity, which owe much to the country’s robust hydrocarbons revenues. Lending to the economy has been growing strongly, albeit from a low base, and while intermediation rates are low, plans to relax a government ban on consumer credit and launch a new credit registry in 2015 should help facilitate more lending in the coming years. Algeria’s stock market remains modest in size, with a market capitalisation equivalent to around just 0.1% of GDP – a result in part of the country’s surplus liquidity and accessible bank lending. However, recent years have seen the first equity listings by private sector companies on the exchange, and plans by the government to float stakes in eight state-owned firms should have an enormous impact on capitalisation. A number of proposed reforms, such as plans to remove the requirement for bank guarantees for bond issuers, should help to further boost market activity in coming years. The Algerian insurance market is underdeveloped by regional standards, with penetration particularly low in the life segment; however, the sector has witnessed strong expansion in recent years. State-owned firms still dominate the sector, though private insurers are gradually increasing their market share. Following the successful separation of life and non-life activities, the life insurance segment should continue to see particularly strong growth, albeit from a low base. This chapter contains viewpoints from Mohammed Laksaci, Governor, Bank of Algeria; and Adel Si-Bouekaz, Managing Director, Nomad Capital. It also contains a dialogue with Youcef Benmicia, CEO, Algerian Insurance Company; and Nacer Sais, CEO, Algerian Insurance Society.

The country boasts the fourth-largest oil reserves and second-largest natural gas reserves in Africa, but production has declined in the last decade as existing fields mature. Changes to the regulatory framework in recent years have resulted in tighter capital inflows, but the government is working to encourage new investment and exploration to bolster production, including a long-awaited revision to the Hydrocarbons Code in 2013. Algeria benefits from some of the largest and most underexplored blocks of territory in the world, and the outlook for both conventional and non-conventional production is significant. Nonetheless, the country faces a number of challenges as it works to scale up energy and electricity production. This chapter contains interviews with Youcef Yousfi, Minister for Energy and Mines; Saïd Sahnoun, Interim CEO, Sonatrach; Karen Agustiawan, Former CEO, Pertamina; and Abdallah Salem El-Badri, Secretary-General, OPEC.

After years of sustained high oil prices and a comparatively prudent fiscal policy – albeit balanced on a high breakeven price – Algeria has built up considerable financial buffers, which will help the country to ride out the current decline in global commodity prices. Declining oil prices have also highlighted the government’s efforts to develop the non-hydrocarbons sector, something it has sought to do for several years, with varying levels of success. The state continues to play a key role in the economy, through both regulatory tools and direct intervention via state-owned enterprises. According to the IMF, overall GDP is projected to jump 4% in 2014 to €167.5bn, up from 2.8% in 2013. This section includes interviews with Amara Benyounes, Minister of Commerce; Issad Rebrab, CEO, Cevital; Mohamed Laid Benamor, President, Algerian Chamber of Commerce and Industry; Kamel Moula, President, Club des Entrepreneurs & des Industriels de la Mitidja; and Réda Hamiani, Former President, Algerian Business Leaders’ Forum.

Algeria has notable geographic, demographic and cultural diversity. Its territory reaches from the Mediterranean Coast to the depths of the Sahara Desert, and its population includes a blend of Arab and Berber linguistic and cultural traditions. In recent years, Algeria has maintained an impressive degree of stability, with the government focusing on helping stave off further unrest in the region and working to strengthen the country’s baseline economic indicators. Economic development has been driven by oil and gas, which today still accounts for 30% of GDP, 60% of budget revenue and 97% of export receipts. In the last five years, the government has reoriented its focus to diversify the economy and take advantage of the full range of the country’s natural and human resources, and to ensure that growth is more inclusive. This chapter includes viewpoints from President Abdelaziz Bouteflika; Prime Minister Abdelmalek Sellal; and Jean-Marc Ayrault, Former Prime Minister of France. It also includes interviews with Ramtane Lamamra, Minister of Foreign Affairs; and Fiona Woolf, Alderman and Former Lord Mayor of London.

OBG introduces the reader to the different aspects of the legal system in South Africa, in partnership with DLA Cliffe Dekker Hofmeyr. OBG talks to Brent Williams, CEO, DLA Cliffe Dekker Hofmeyr, on the African investment climate.