Since 2019, the Algerian cell phone market has been supplied with smartphones in a fraudulent and irregular manner, after the government’s decision to put the assembly of mobile phones under a preferential regime.
The observation is made by the Minister of Industry, Ali Aoun. Hence the need to relaunch local production as quickly as possible, which came to a complete halt after the suspension of the CKD-SKD system . Beyond the return to normal regarding market supply, the resumption of activity is expected to create tens of thousands of jobs in Algeria.
After relaunching the pharmaceutical industry and automobile production, Ali Aoun is tackling the smartphone industry.
“ The will is there more than ever. I challenged myself. Mr. President of the Republic has placed his trust in me and I will not give in an inch on the areas in which I can make a difference ,” explained Ali Ali on Sunday during a meeting on the relaunch of the smartphone assembly industry in Algeria.
The relaunch of mobile phone production activity was discussed during a coordination meeting held on Sunday, March 31, at the Ministry of Industry and Pharmaceutical Production, in the presence of Minister Ali Aoun and his colleagues. of Post and Telecommunications Karim Bibi Triki and of Commerce Tayeb Zitouni.
Kamel Moula, president of the employers’ organization CREA (Algerian Economic Renewal Council) was also present, as well as operators active in the sector.
The idea is to take advantage of the experience acquired by many Algerian companies such as Condor and Iris in the assembly activity (before its suspension) and the investments made, while avoiding the mistakes of the past, particularly with regard to the integration rate.
The production lines are ready to resume, assured the operators, while Minister Aoun recommended carrying out a census of all available capacities and combining efforts in order to guarantee the success of the initiative.
At the end of the meeting, it was agreed to increase consultations in order to develop specifications governing this activity.
“ The smartphone file will know its outcome following decisions that will be taken by the country’s high authorities. We are going to present a file which will understand how we will revive this industry,” assures Ali Aoun.
Revival of smartphone production in Algeria could create up to 50,000 jobs
Minister Ali Aoun stressed that “for three or four years, no smartphone has entered Algeria on a regular basis“, which, according to him,” puts the country in difficult situations from a security, economic, comfort point of view and generally from the point of view of monitoring this […] important and sensitive file ”.
Since the suspension of the CKD-SKD system, the authorities have not found a “substitution process”, indicates the minister. The solution lies in the return to the production of smartphones in Algeria.
“We listened to the operators and we took care of their concerns which will allow us to develop the file that we will present to the President of the Republic,” he said. The economic and social stakes of the project are important for Algeria.
“By listening to everyone, the assembly alone will create 20,000 direct jobs,” assures Ali Aoun, without taking into account the entire marketing, distribution and small shops aspect.
“If we manage to relaunch this activity as quickly as possible, it will allow us to create around 50,000 jobs,” he predicts.
This would also make it possible to cover the needs of the internal market. For the export of smartphones, Ali Aoun recognizes that assembly does not offer great added value for Algeria and that, to be competitive and export, an integration rate will be required “between 50 and 60%”.
The president of CREA, Kamel Moula, also underlined the potential of the sector in terms of job creation. “It is estimated that there will be at least 30,000 jobs created,” says Kamel Moula.
There will be mainly subcontracting, but also after-sales service, he adds, stressing that, currently, “consumers are not protected” in the absence of after-sales service.
The smartphone is an “essential” work tool for businesses and the general public, recalls the president of CREA. “Through this joint commission between the ministry and economic operators who already have the know-how and knowledge of smartphone production, we will move towards specifications that will allow at least a part to be produced locally,” explains Kamel Moula.
After banning the import of smartphones in 2018 to encourage the assembly of devices locally, Algeria decided in 2019 to end the preferential SKD regime for importing smartphone components.
These two decisions benefited the black market with fraudulent imports of smartphones, which represents a significant shortfall for the national economy, and represents, according to specialists, security risks for the country.
