The presidential ambition to build a more efficient economic model seems to be materializing quickly, with the key to “an acceleration of GDP growth and the creation of 450,000 direct jobs in the medium term”. The AAPI services recorded 8,950 investment projects between November 1, 2022, and August 22, for a total amount of approximately 4,000 billion dinars.
Despite the bureaucratic and land barriers that traditionally hamper investment in Algeria, a new dynamic seems to be emerging, marking a promising change of direction. This positive development was highlighted during a regional seminar held yesterday in Constantine, focused on “Investment Promotion”.
Omar Rekkache, Director General of the Algerian Investment Promotion Agency (AAPI), highlighted the notable progress made since the adoption of recent legislative reforms in terms of investment and management of economic or industrial land.
These reforms, a pillar of the presidential initiatives, aim to transform the business climate in Algeria. According to Mr. Rekkache, the country’s economic indicators have been reflecting this transformation for two years, and the entry into force of the law on economic land six months ago is a key driver.
The presidential ambition to build a more efficient economic model seems to be materializing rapidly, with the key being “an acceleration of GDP growth and the creation of 450,000 direct jobs in the medium term.”
Mr. Rekkache also mentioned better control of complex issues, particularly those relating to land, while recognizing that certain challenges remain, such as the completion of the mechanisms provided for by the new land legislation.
However, the efforts to implement these new provisions are considered considerable. With optimism, he mentioned a real enthusiasm for major investment projects, both for national and international operators, thus contributing to the growth of the Algerian economy.
Supporting his remarks with concrete data, Mr. Rekkache revealed that the AAPI services recorded 8,950 investment projects between November 1, 2022, and August 22, for a total amount of approximately 4,000 billion dinars. These projects should generate more than 220,000 direct jobs.
Promising economic indicators
These projects include significant partnerships, such as the Baladna project, and the Algerian-Qatari-German hospital, as well as a partnership with the Italian Bonifiche Ferraresi (BF), in addition to hundreds of other projects currently under review by the Agency. These figures mark the entry into a new era, based on the renewed confidence of economic operators, thus strengthening Algeria’s attractiveness for foreign direct investment.
The same official also indicated that the negotiations for obtaining investment authorizations are taking place in a favorable climate. 165 foreign investment projects have been identified, including 61 direct investments and 104 in partnership with local operators. The AAPI reiterates its determination to support the projects initiated under the previous legislative framework to ensure their realization.
In addition, between November 1, 2022, and August 22, the agency granted 1,533 extensions of decisions to grant benefits. Regarding the management of economic land, since the launch of the investor’s digital platform, 546 plots have been listed across 44 wilayas, leading to the granting of 361 provisional decisions, 129 of which have been finalized, allowing beneficiaries to receive their concession contracts and launch their activities.
The other beneficiaries have received formal notices to prove the truth of their declarations under penalty of cancellation. As for complaints, the digital platform remains the only tool to process requests in an automated manner.
Holders of provisional decisions must then register their projects with the one-stop shops, where the consistency of the information will be checked. Mr. Rekkache specified that as early as October, a dashboard of the projects carried out will be presented, with “first reports indicating that more than 50% of the registered projects have reached the implementation phase. Real images of the project sites will also be provided to illustrate the successes of the structuring projects launched in various regions of the country.”
In conclusion, AAPI is committed to continuing its efforts to improve the performance of its employees and tools, simplify procedures with the generalization of digitalization, strengthen communication with investors, guarantee transparency, and fight against bureaucracy and corruption, while supporting investments beneficial to the national economy.
During a press conference, the DG of AAPI announced that a new measure for the transfer of land for the benefit of investors, under the recent provisions of the law on economic land, will be implemented next September.
This measure also applies to previous files, which explains the weekly influx of hundreds of requests for land purchases addressed to the Agency. “We have established procedures for processing and classifying files.
The first decisions will be made in the next 15 days, starting with complete files that do not present any anomalies,” he said. Mr. Rekkache also urged the holders of the hundreds of thousands of files filed under Calpiref to register on the digital platform.
