ANNOUNCING THE 2009 ALGERIA ECONOMIC FORUM
MONDAY, APRIL 27, 2009 - WILLARD HOTEL , WASHINGTON, DC
The 2009 Algeria Economic Forum will be an opportunity for US companies to learn more about opportunities for US business activity and US investment in Algeria and to learn about the Algerian Commercial Code. This panel of Algerian economic experts will explain recent financial reforms, taxation, financing opportunities and new incentives for US companies operating in Algeria. Please view the draft agenda below.
Dr. Ismael CHIKHOUNE, President & CEO, US-Algeria Business Council
Mr. Don DELINE, Chairman, US - Algeria Business Council
12:15pm - The Official Address from Algerian Government Officials
His Excellency Abdallah BAALI, Algerian Ambassador to the United States
His Excellency Minister Karim DJOUDI, Minister of Finance of Algeria
1:00pm - Networking Luncheon
2:00pm - Invest in Algeria Panel: Facilitating Foreign Investment
Mr. Mohamed CHAMI, Director General of the Algerian Chamber of Commerce and Industry,
Mr. Abdallah CHABANE, Head of Office of National Export Strategy at the Ministry of Commerce
Ms. Nadia KHENAFI, Director of Cooperation at the Algerian Ministry of Participation and Investment
Mr. Ali FARRAH, Director of Expositions at the Algerian National Company of Trade Shows (SAFEX)
Mr. Mohamed AZIAR, Director General of the Algerian Chamber of Commerce and Industry of Annaba
Mr. Omar MOHAMMEDI, Senior Partner, OTM Law of New York City
Algeria Begins Participation in the IMF's General Data Dissemination System (GDDS) Algeria began participating in the International Monetary Fund's (IMF) General Data Dissemination System (GDDS) on April 20, 2009, marking a major step forward in the development of its statistical system. Comprehensive information on Algeria’s statistical production and dissemination practices now appears on the IMF's Dissemination Standards Bulletin Board (http://dsbb.imf.org/Applications/web/gdds/gddscountrylist/).
The Governor of the Bank of Algeria, The Honorable Mohammed Laksaci, stated: “I am very pleased that Algeria has begun to participate in the GDDS. Algeria is committed to building a national statistical system consistent with best international practices. The IMF's GDDS provides an excellent framework for the development of statistical systems and participation in it proves the commitment of the data producing agencies to implement short- and medium-term plans for strengthening the statistical system and to monitor progress. I am confident that Algeria’s GDDS participation will lead to the production and dissemination of more reliable and timely statistics.”
Ms. Adelheid Burgi-Schmelz, Director of the IMF Statistics Department, welcomed Algeria's GDDS participation and observed: “Algeria’s participation in the GDDS is a major milestone in the country's statistical development. I am confident that Algeria will benefit from using the GDDS as a framework for further development of its statistical system. Algeria’s participation in the GDDS would also encourage other countries in the region to follow the same path.”
The GDDS was established by the IMF in 1997. It provides a framework to help countries to develop their statistical systems to produce comprehensive and accurate statistics for policymaking and analysis. Algeria is the 95th GDDS participant.
The Embassy’s Economic and Commercial Section Missions of the Section In view of the continuous and significant development of the economic and financial relations between Algeria and the United States and with the aim of a better coverage of the multiple requirements of the cooperation sector between the two countries, the Embassy of Algeria in Washington created, in September, 2006, an economic and commercial service.
The mission of the economic and commercial service of the Embassy resides in the following spots:
- The contribution to the elaboration of the legal instruments (agreements) for economic and financial cooperation between the two countries as well as the follow-up of their implementation. In this regard, the Service participates in the preparation of the intergovernmental negotiations dealing with the issue and in the diverse demarches with care of these instruments.
- The contribution to a better appreciation of the conception and the national objectives regarding the bilateral cooperation and economic and commercial exchanges through the explanation to the US official interlocutors and economic operators the diverse aspects of the national economy and the current economic reforms and policy of opening operated by the Government.
- The fostering and the promotion of the Algerian exports outside hydrocarbons to the United States by the promotion of the policy of economic opening and the national legal existing mechanisms (laws and application texts) and other economic opportunities that Algeria conceals as well as the participation of the national operators of public and private sectors for exhibitions, fairs and other economic and commercial demonstrations held in the United States.
- The participation to the prospecting of markets through demarches begun toward the federal authorities and economic, financial and commercial institutions and other relevant organizations in the United States.
- The contribution to a better understanding by the American operators of the legal framework governing the Algerian business climate by meaning actions of information, advices and accompaniment of the US operators (organization of seminaries, forums dedicated to the Algerian economy and missions of prospecting of the national market for their benefit).
Overview of the Algerian economy The hydrocarbons sector is the backbone of the Algerian economy, accounting for roughly 60% of its budget revenues and over 95% of export earnings. With its seventh-largest natural gas reserve rank in the world and the Arab second-largest gas exporter one, Algeria has fairly consolidated its GDP, which passed from $83,9 billion in 2004 to $135 billion in 2007. Per capita skyrocketed in 2007 reaching $3968, non-oil GDP growth hovered 6%.
After the implementation of a rigorous macroeconomic stabilization program and the rescheduling of its Paris Club debt in the1990s, Algeria has lunched a complementary macroeconomic program which contributed in reducing inflation from averages of 30% in the mid-90s to 4,6% in 2007 and the budget deficit as well. The economy has grown to 4.5% in 2007 and the foreign debt fall to $4.8 billion after the 2006 arrangements with Algeria’s creditors of Paris Club for paying by anticipation of nearly $13 billion debt.
Algeria has invested heavily to improve the business environment with the efforts aiming to consolidating the result of the 2001-2004 public spending plan through the $55 bn Complementary Growth Support Plan lunched by President Abdelaziz Bouteflika for developing spending between 2005 and 2009, a plan aimed at improving living conditions, upgrading the country’s infrastructure, improving the business environment and rebalancing the regional development. The major projects to be carried in the same period are the construction of 1 million housing units, a 1260km east-west highway and the capital underground metro, plus the capital new airport got into service since last July 2006. Almost a similar Development Program for the South and the Hauts Plateaux region was launched.
The Algerian economy is not sufficiently diversified and Algeria is still dependent on the crude oil sector consolidated by the hydrocarbons low of April 2005, modified in July 2006. However, it can take advantage of its geographical position in the center of the Maghreb and North Africa, the potential of its population, its skilled and competitive labor force, a dense industrial fabric (steel industry, petrochemicals, electronics..) and a new policy favorable to business.
The Government pledges to continue its efforts to diversify the economy by attracting foreign investment outside the energy sector and the legislation for this aim provides all the measures to encourage investment without distinction between domestic and foreign capitals.
Since January 2002, a new customs tariff has been in force. It comprises four customs rates: 0, 5, 15 and 30%, depending on the degree to which the imported products have been transformed. The rate of 5% is applicable for raw materials and generally for capital equipment, the average rate (15%) for semi-finished and intermediate products, and the highest rate (30%) for final end-user consumer goods. These rate levels mean that Algeria is more open country in the Mediterranean basin even before the phasing out of tariffs planned by the free trade area comes into force. However, an additional temporary duty (DAP) is applied to certain goods so as to protect locally produced products. From 60% at the start (2001), it is a digressive duty (12% /annum) in time until its entire disappearance.
Algeria is undertaking a public finance reform that started with the currency and credit Law in the beginning of the 90s. The suspension of the State bank "Credit Popular d’Algérie" privatization process to assess the international financial crises implications will resume as earlier as possible.
Many other reforms are currently underway as Algeria is gearing up to reap the fruit of the Association Agreement with the European Union (came into effect since September, 1st,2005) and the coming country’s accession to the World Trade Organization (WTO).
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