Algeria: From Bankruptcy to Development

BY: Dr. Hana Saada

ALGIERS- Algeria is embarking on a journey of genuine development aimed at benefiting both businesses and workers, declared President Abdelmadjid Tebboune during his address yesterday.

Speaking at the International Workers’ Day ceremony at the headquarters of the General Union of Algerian Workers (UGTA) at the People’s Palace in Algiers, President Tebboune shed light on the dire economic situation the country faced before the Hirak movement. “In 2019, we found the country in a deplorable state due to a decade of mafia rule, with unpaid salaries, a faltering economy, a deficit in the public treasury, and depleted foreign exchange reserves, leading to an unprecedented crisis,” he remarked.

This era, as the President elaborated, was characterized by a complete disregard for workers and the middle class, during which the wealthy became richer while the underprivileged sank deeper into poverty. “It was a carefully orchestrated plan to demoralize Algerians, pushing them to abandon the country in favor of undeserving entities,” he emphasized. Tebboune added that the nation was on the brink of losing its sovereignty entirely, “until the blessed Hirak came to the rescue.”

Over 900 companies were idle

Reflecting on the situation prior to the Hirak movement, the President highlighted an economy built on a fragile foundation, favoring excessive imports at the expense of domestic production and the national treasury. “Public funds were squandered on luxury hotels and prestigious residences abroad. Funds were diverted to prevent domestic production,” he elucidated.

By 2022, an investigation into the state of the economy revealed that over 900 companies were dormant to facilitate large-scale imports. “These production units were operational but hindered by persistent bureaucracy.” Within just six months, “these companies were reactivated, creating over 22,000 jobs,” he revealed.

On the matter of debt, the President stated his decision to restore the economic situation without resorting to borrowing. “I view debt as a betrayal of our martyrs,” he stressed. According to the head of state, the nation’s blessings and wealth were transformed into curses by the hands of the ‘Issaba’ (mafia). He assured that those who misappropriated the poor’s funds and led the nation to its previous state would be brought to justice, declaring, “We have definitively rid ourselves of the rentier economy.”

SMEs, Digitalization, Hydrocarbons…

For economic recovery, Tebboune explained his reliance on small and medium-sized enterprises (SMEs) due to their lower financing costs and greater job creation potential compared to larger corporations. “Today, we have over 7,000 startups operating in Algeria, with many even venturing into exports.”

Additionally, the President mentioned the decision to halt fuel imports, aiming to “promote domestic production of this commodity, and we have succeeded,” he rejoiced, predicting that “we will soon be exporting this product thanks to our country’s refineries.”

In terms of investments, the President noted that the process is now overseen by a specialized agency, the Algerian Investment Promotion Agency (Aapi), which allocates economic land to project holders. This is accompanied by a new investment code, the regulations of which remain unchanged for a decade.

He announced that Aapi has received 100 foreign investment requests and over 7,000 from domestic investors, including Algerians living abroad.

The President also stressed the importance of digitalization, stating it is the key to obtaining accurate economic data. He assured that “the economy is based on real figures.”

In 2024-2025, we will produce our own sugar

President Tebboune highlighted the significance of the processing industry, which constitutes a significant portion of the industrial sector. He announced that by the end of 2024 and the beginning of 2025, Algeria will produce its own sugar without relying on imported materials, similar to oil production in Béjaïa. “That is true independence,” he affirmed, stating that this goal can only be achieved by consuming what the nation produces.

Continuing on the theme of domestic production, Abdelmadjid Tebboune noted that Algeria has started to establish a genuine industry, particularly in the household appliance sector. He assured that at the next national production fair, “made in Algeria” products will be showcased, emphasizing that this is the economy that reduces unemployment.

He provided examples of once-imported materials now produced in large quantities and even exported, such as cement. Other products, like iron, have also seen significant increases in production and exports, he reminded, asserting that for the first time, Algeria has increased its non-hydrocarbon exports.

Regarding Algeria’s GDP, the President stated that the country has experienced a qualitative leap, rising from $164 billion in 2015-2016 to $260-$270 billion USD in 2023. He ensured that it will reach $400 billion by 2026-2027, positioning Algeria as the largest or second-largest economy in Africa.

On the subject of the dinar’s revaluation, Abdelmadjid Tebboune mentioned that while the recent increase in the national currency is minimal, it signals the beginning of a future increase.

Translated from: 

https://lalgerieaujourdhui.dz/lalgerie-de-la-faillite-au-developpement/

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