International economic scene and direct investment
| M.Abdelouahab REZIG |
-
M. Zineddine BOUSSOUSSA: Ministry of Industry
- M. Mohamed BACHA: Ministry of Participations and Investments Promotion
|
The deliberations of the Committee were essentially focused on the FDI.
- What place for the FDI?
- How to attract the FDI?
After a diagnosis which accentuated the assets which has Algeria at its disposal as well as constraints to the FDI, the debates led to the following propositions and recommendations:
|
1. The place of the FDI
- As underlined it the document on the strategy, it is not possibly to substitute the FDI for the national private investment.
- In case of competition concerning the same project and on equal conditions, between these two types of investment, the preference should go to the national investment.
- The FDI can head where they wish.
- However, it is advisable to encourage non-hydrocarbons FDI, to grant to them supplementary advantages in the same capacity as the national investments, when they are part of priority fields.
-
We must in addition favour investors who contribute to the strategic industrial fields development through business plans over 5 - 10 years and which participate in concrete terms to:
-
The increase of products and services exports volume;
-
The setting up of innovating and structuring firms in position to strengthen concomitantly the development of the national innovation system;
-
The creation of skilled industrial jobs and to the strengthening of the national executives competences.
-
The implementation of non polluting industries.
- In other words, what the State must do now is to avoid systematic advantages granting without predefined strategic objectives.
- It would be advisable to encourage more the FDI brought by foreign small and medium firms, in partnership with state-owned companies.
|
2. How to attract more the FDI?
- By strengthening the national will and capacities to make business because the experience showed that the existence of local partners, committed and capable of dealing with possible foreign investors constitutes a powerful attractiveness factor of FDI.
- By improving more business climate, how much even it is true that this last one experienced important positive transformations during these last years.
-
As far as this issue is dealt with by the Committee Environment of the company, we must underline simply some aspects which deserve a particular attention:
-
Accelerate the reforms. Is it necessary in this respect to remind that the countries which took advantage of opportunities offered by the globalization are those who knew and were able to complete successfully the structural reforms?
-
Carry out diligently the public banks capital opening to foreign banks of which the competence is recognized and which ensures a technological contribution, an expertise and a strengthening of the managing capacities.
-
Encourage the Bank of Algeria to make the imports of services easier by simplifying the current procedure as far as transfer is concerned.
-
Put at the private developers disposal plots of land for the development of industrial estates developed and managed by the private sector.
-
Simplify and reduce the periods of the administrative procedures. As an example, consider actually as approved the requests which did not receive answer on behalf of the administration for the required legal period; often good texts exist but are not systematically applied.
-
Identify a given number of measures - procedures to be abolished before June, 2007 in each ministry concerned by the investment.
-
Set up a single and efficient contact that is capable of supplying the necessary assistance and monitoring for the investors, in particular foreign investors, to optimize their conditions of installation and work. The single counter, which in fact groups together several administrative contacts, proves to be not equipped with the right tools and consequently inefficient for carrying out diligently the procedures relating to the FDI.
-
Consult the national operators in the negotiations committed by our country within the context of the entry to the WTO.
-
It is necessary to develop a strategy for the promotion of the corporate image Algeria to strengthen the already introduced actions of communication. Indeed:
-
The country has undeniable assets which it is necessary to promote:
- Political stability regained;
- Definite will of progressive integration in the Mediterranean Euro area;
- An incentive policy very favourable to the investment;
- A modern infrastructure in course of development and strengthening (Program of reflation 2005-2009 in the course of execution);
- Legal framework and procedures of establishment in constant improvement.
- However, it is advisable to:
- Highlight the comparative advantages of Algeria by the development of specific studies made by offices of international renown;
- Increase events and awareness days in Algeria and abroad for the promotion of investment opportunities;
- To strengthen the proactive approach towards the multinationals through direct contact;
- Give to the investors a reliable information and for it set up a mechanism of data decentralization relating to the FDI and to ensure a wide diffusion through our diplomatic representations the competence of which should be strengthened in the matter, as well as other specialized structures to set up;
- Ensure a wide distribution of the industrial Strategy because it constitutes a powerful factor of FDI attraction as much as it answers to a need of visibility of our economy in the medium and long term, a need expressed both at the national and international level.
In conclusion, the committee members consider that the arena of consultation given by the opening of the National Conferences of Industry was as necessary as useful. So they strongly recommend that these Conferences will be organized in a regular way.
|
|
