Algeria- Algeria is working to free its economy from dependence on the hydrocarbons sector after it dominated the country’s revenues for years, by making it more diversified by promoting promising sectors and supporting local production, in addition to achieving sufficiency in several areas and directing its products towards export.
Algeria has initiated deep and structural reforms to correct imbalances in the economic field by improving the investment environment and rationalizing imports in parallel with the development of national industries, while redrawing the map of the country’s foreign trade, as required by internal benefit and geopolitical challenges in the world, according to a vision that aims to achieve $29 billion in non-exports. oil by 2030.
In recent years, the field of exports outside of hydrocarbons in Algeria has achieved unprecedented numbers, exceeding the threshold of 7 billion dollars expected this year, after its exports outside of hydrocarbons did not exceed 3.8 billion dollars before the year 2020, with an annual growth rate exceeding 45%.
Regulation of trade
Regulating foreign trade is one of the priorities of Algerian President Abdelmadjid Tebboune as part of a strategy that aims to increase non-oil exports to the country by the year 2030, while ensuring that the process does not cause a loss of products in local markets.
In this context, the Algerian President ordered the preparation of a presidential decree regulating foreign trade, including export operations that require financial and economic feasibility studies for the local and international market so that export does not turn into a curse and a cause of scarcity of goods and disruption of the local market.
Tebboune ordered to confront the scarcity of goods, whatever their causes, and to take the necessary steps at the level of the Ministry of Commerce to fight the import blocs that he said were trying to blackmail the state, and to withdraw their licenses and commercial records if their involvement was proven, according to a statement by the Algerian presidency.
In addition to a radical review of the organization of the marketing of the national product to the citizen through the enactment of a law in which the system of price control by decrees is used when it comes to unreasonable prices for products that are in season.
Stabilize the economy
Economic analyst Jalloul Salama considered that the measures taken by the Algerian government to regulate trade may be due to recording an imbalance resulting from the export of some products despite the national market not being sufficient with them, which prompted it to take regulatory customs measures that fall within its powers without causing harm to freedom of competition and foreign trade.
Salama confirmed in his conversation with Al Jazeera Net that Algeria is looking, through these measures, for comprehensive economic stability by reaching monetary stability, especially stability in the exchange rates between the dinar and the rest of the foreign currencies circulating between Algeria and its partners.
He believes that through these measures, Algeria aims to ensure that the repercussions of global market fluctuations on its local market and their impact on prices are limited, and that they do not affect the average national per capita income, while preserving the trade balance by balancing the value of imported goods and exported goods.
For his part, economic expert Abdul Qader Soleimani considered that the goal of regulating the market is to reach self-sufficiency and ensure that the national market is saturated with products and then go towards exporting them, so as not to create what is called scarcity or take away the internal market, to preserve resources, and to avoid fluctuations in national markets.
Open partnerships
In his interview with Al Jazeera Net, Soleimani said that Algeria is developing a national strategy for exporting non-hydrocarbons based on encouraging investment locally, increasing production, and then moving towards self-sufficiency.
The economic expert considered that the ball today is in the court of producers and the private sector in light of the financial, tax and customs incentives taken by the state to encourage local production and achieve nationalization, in addition to strengthening the legal system related to the investment and economic real estate laws.
Soleimani stressed that the door to partnerships is open today with foreign investors, especially with friendly countries such as Turkey, Qatar, China and Italy.
He pointed out the need to search for new markets through permanent exhibitions and exhibitions of Algerian products, such as those held in Nouakchott and Doha, while encouraging economic diplomacy to attract partnerships and conclude medium- and long-term agreements, so that producers and exporters can guarantee markets outside Algeria, which means ensuring exports outside of hydrocarbons.
Self-sufficiency sectors
Soleimani believes that there is no conflict between the figure of $29 billion in non-hydrocarbon exports that Al-Jazairy seeks to reach by 2023 and the procedures for regulating the local market.
He stressed the possibility of achieving it through certain sectors that have reached saturation and sufficiency, such as “the iron and steel sector, minerals and mines, as well as cement and some industrial products and food industries.”
For his part, Ali Bey Nasseri, Vice President of the National Association of Algerian Exporters, said that reaching $29 billion in Algerian exports outside of hydrocarbons is a big bet given the value of Algerian exports, which is considered low.
In his conversation with Al Jazeera Net, Nasseri returned to the list of exporting sectors that have production capabilities that allow them to export without affecting the local market, such as fertilizers, which represent 60% of exports outside of fuel, in addition to iron and steel, the cement sector, which records a surplus in production amounting to 18 million tons. And the food sector.
He considered that the home electrical appliances sector is an important sector in Algeria, but the value of its exports does not actually reflect the size of its capabilities, in addition to the agricultural sector, which lacks an export vision consistent with its capabilities.
Nasseri stressed the need to conduct a comprehensive assessment of all sectors that may contribute to providing hard currency for the country through export and develop strategies to pay for it in line with the desired numbers.
