Algeria has a place to take in Africa 

Feb 14, 2019


"Frontier of investors", as described by the CEO of the WTC Algiers, Africa is capable of increasing foreign direct investment. Speaking at the 14th meeting of the WTCA Export Club, dedicated to the "deployment of Algerian companies in Africa", Ahmed Tibaoui sees in the African market, a great opportunity to boost Algerian exports.

The approach, he comments, requires an "efficient strategy". In his eyes, Africa is also a continent to be in, citing statistics from the African Development Bank, the continental growth expectations is more than 4%. In the mining sector, Africa has one-third of the world's reserves. Bruno Messerschmitt, partner lawyer in charge of Africa, presented the Ernst and Young (EY) 2018 report , notes that last year was a "turning point in African development" citing, among other things, a 6% increase in FDI, the arrival of new foreign investors who are hitting behind historic investors, the emergence of profitable sectors in the long term such as construction, industry and renewable energies as well as strengthening the resilience of the African economy. The prospects are also good. With a GDP of 2,700 billion dollars (billion dollars), which should reach 20,000 billion dollars in 2050, equivalent to that of the European Union, and a population that should reach 2.5 billion inhabitants, Africa stands at the rand of one of the most promising markets in the world.
From Algeria, the report highlights the comparative advantages of Algerian exports, which will guarantee greater integration into the African market. "Algerian investors and entrepreneurs have a place to take," notes the head of Ernest and Young. And added: "the main issues for the Algerian investor are support, financing arrangements, repatriation and exchange control". In terms of FDI, Algeria gained two places in 2017 with 24 direct investments in Africa against 17 investments in 2016, notes the same firm.

Logistics: a big snag

The first foreign investors in Africa in 2017, the report points out, were respectively the United States (130 projects), Great Britain (72 projects), France (61), China (54), Germany ( 39), Switzerland (30), South Africa (29). Like all markets, Africa's is not risk-free.
In his presentation, Mr Messerschmitt indicates that the most risks are of a macroeconomic nature, to which is added the informal markets which, according to him, represents between 40 and 60% of Africa's GDP, the lack of infrastructure, particularly in sub-Saharan Africa. insecurity, tax harassment, governance, high dependence on raw materials, as well as the lack of basic infrastructure in general and especially in logistics and electrification. "Only half of the annual needs of $ 100 billion of infrastructure investment in Africa is covered," the speaker said.

Speaking at the debates, Mrs Sihem Mokrani, in charge of economic cooperation at the Ministry of Foreign Affairs, assured that Algerian diplomatic representations in Africa are doing their best to inform national operators about investment opportunities in the continent. The department she represents is working to set up a digital platform bringing together all the regional and international institutions responsible for facilitating intra-African trade.