Algeria: A New Prime Minister to Try to Stem The Economic Crisis

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Algerian Minister of Finance, Aïmene Benabderrahmane, was appointed Prime Minister on Wednesday, following recent legislative elections marked by historic abstention, at a time when the country is going through a serious socio-economic crisis.

“In accordance with the provisions of the Constitution, the President of the Republic, Mr. Abdelmadjid Tebboune, has appointed Mr. Aïmene Benabderrahmane as Prime Minister”, according to a press release from the presidency.

“He is responsible for continuing consultations with political parties and civil society to form the government as soon as possible,” the statement added.

Mr. Benabderrahmane, 54, had occupied the chair of grand financier since a cabinet reshuffle in June 2020, after having been governor of the Bank of Algeria from November 2019.

“You are qualified for the task ahead because what awaits us is linked to economic and social affairs, and therefore financial”, explained Algerian President Abdelmadjid Tebboune, who wished him “to succeed as you succeeded in the post of minister finances”.

In this post, Mr. Benabderrahmane had to face a liquidity crisis and the depreciation of the dinar.

– “Difficult conditions” –

Born on August 30, 1966 in Algiers, the new Prime Minister is relatively unknown and without much political experience. This technocrat with a round face, a bald head and a thin mustache, holds a law degree and graduated from the National School of Administration (ENA) of Algiers and the School of Taxes of Clermont-Ferrand (center of France).

Since 1991, he has spent his entire career in finance, tax administration, and the central bank.

His name was mentioned among the favorites to succeed Abdelaziz Djerad.

Given in recent days, Mr. Djerad has failed to restore the first economy of the Maghreb and the fourth in Africa, which is based mainly on oil revenues (more than 90% of its external revenues).

In office since December 2019, Mr. Djerad, 67, had submitted his resignation and that of his government after the anticipated legislative elections of June 12. President Tebboune had entrusted him with managing the day-to-day business.

The Head of State thanked him for having led the government “under difficult conditions”, in particular because of the health crisis.

But he did not hide his criticism of Mr. Djerad, publicly expressing his dissatisfaction with the inaction of the government.

Mr. Benabderrahmane’s priority task will be to train the government to execute President Tebboune’s “road map”, ahead of local elections scheduled for the fall.

Mr. Tebboune demanded that the government be “formed within a week”.

The Prime Minister-designate is responsible for “effectively implementing the rebirth program of the President of the Republic which will allow Algeria to achieve the desired economic start,” he detailed.

He will have to choose his team from among the parties that won in the last elections: the National Liberation Front (FLN), the former sole party and the main formation of the outgoing Parliament, and its allies, as well as a group of independents who are rallied to President Tebboune.

– “Starting point” –

On the other hand, the main Islamist party, the Peace Society Movement (MSP), which came third in the elections, will not participate in the new government, failing to obtain satisfaction on the appointment of its ministers.

After having suppressed the anti-regime movement of Hirak, the government is determined to regain control but ignoring the demands of the street: rule of law, democratic transition, popular sovereignty, independent justice.

“Back to square one”, reacted Saïd Salhi, vice-president of the Algerian League for the Defense of Human Rights (LADDH): “From the program of (the deposed ex-president) Bouteflika we arrive at the program of Tebboune who is obviously decided to go to the end of his “roadmap” despite his failure confirmed during three electoral consultations”.

The regime has been shaken by a deep political crisis since the popular uprising of February 2019, as evidenced by the record abstention rates of the three previous national elections (presidential of 2019, constitutional referendum of 2020, and legislative referendum of 2021).

In addition, the Algerian economy is heavily and durably impacted by the drop in hydrocarbon prices and the effects of the Covid-19 pandemic.

Thus the Algerian oil giant Sonatrach achieved an export turnover down 39% compared to the previous year because of the coronavirus pandemic, according to the official APS agency.

Finally, the authorities have to deal with an increase in social conflicts, fueled by a high unemployment rate (15%) and the impoverishment of large sections of society.