Algeria – The Algerian government is preparing to introduce a new investment law, promising to break free from the economic isolation it has besieged in recent years, and to persuade foreign capital to take a risk on the paralyzed internal system to move.
The extraordinary cabinet, held on Thursday, under the supervision of President Abdelmadjid Tebboune, unveiled a new formulation of the country’s investment law, to be a new issue in which the government hopes to move the wheels of the faltering local economy , especially in recent years, due to the economic crisis and internal tensions, which prompted many foreign institutions to leave the country, as the Renault branch was the last to leave, according to the information circulated.
The Algerian authorities are betting on a new version of the texts regulating investment in the country, to remove the barriers and obstacles that have disrupted the local economy machine, but the issue of restoring confidence in local and foreign capital remains the biggest challenge facing the government as previous governments have previously tried to shift the sector but they have failed to do so due to conflicting state strategies.
The Algerian Confederation of Employers calls for the development of investment in the country, by including points that encourage investment
The new law clashes with a climate that urgently needs to be cleared of the outstanding impurities, in addition to the occurrence of the phenomenon of administrative and financial corruption, where so far many businessmen and businessmen are in prison, social and political instability, and the domination of the executive over the economic system, as well as other options.This proved to be ineffective, as is the case with the 51/49 rule in foreign investment, under the pretext of maintaining national sovereignty.
The Algerian president ordered the government at a previous meeting of the Council of Ministers to sufficiently enrich the discussion on the investment promotion bill by re-issuing a new law from its establishment to promote investment, and to focus on the commitment of the principle of investment. freedom and initiative, and stabilization of the legislative framework for investment, for a period of not less than ten years. .
He urged President Tebboune to abandon previous practices in drafting legal texts and to stop drafting laws that do not fit Algeria’s image, nor the new bets and trends contained in his 54 commitments aimed at is to establish a new Algeria that bears witness to the great transformations in the world, and places the country in the ranks of the leading countries.
The government’s intention to set up a stable system for a period of ten years shows its desire to overcome previous pitfalls. Legislative texts were subject to periodic amendments and revisions that raised doubts among economic role players, whether local or foreign. their attention to other, more stable and permanent destinations of interest.
The new project included “simplifying procedures and reducing the area of the administration’s discretion in the processing of investment files, especially those that depend on self-financing, as well as strengthening the powers of the Single Window, in the processing of investment files., within specific deadlines. ”
President Tebboune’s directives stressed the need to limit privileges and tax incentives to direct and support investment in some sectors or regions receiving special attention from the state and not others, according to a pragmatic approach, in dealing with direct foreign exchange. investments, which take into account investments that guarantee technology transfer and job creation.
Algeria is one of the weakest countries to attract foreign capital despite the years of financial ease it has known over the last two decades, as it has relied on the public treasury in its development and investment movement, without losing other partners from within or looking outside, which made the ceiling of foreign investment no more than the ceiling of 500 One million dollars at best, according to local reports.
In order to participate in the economic movement that the government is betting on from this year, professional organizations for businessmen and businessmen have proposed a number of scenarios to promote the country’s economic situation, especially with the focus on confronting bureaucracy, the improvement of the business climate and awards. facilities to economic operators.
A statement by the so-called “Economic Renewal Council” stated that he “is confident that this approach is the most effective and that the government is in fact, given the world situation and the economic challenges facing it, appropriate and effective conditions. to improve the environment for private national investment and to attract foreign direct investment in a way that is sustainable. ”
The Council insisted on the codification of the provision of the permanence of the law for a period of not less than ten years, and a clear definition of the priorities in the investments, as well as the provision of guarantees for food, achieve health and energy security. Agricultural surpluses as priority investments.
As far as the Algerian Confederation of Employers is concerned, it called for “the development of investment in the country, by including points that encourage investment and employment and dedicate freedom of initiative and trade, improve the business climate and the activity and success of economic institutions facilitate without discrimination between public and private operators, and purify the business environment of bureaucratic procedures. ” What has turned into terrorism that destroys investments and threatens economic institutions. ”
It called for “rapid reforms of the banking system, tax laws, the process of granting real estate and distributing it to investors in various sectors,” and expressed its readiness to help the business climate without any hesitation. improve mobility in the field of contracting and accelerate the pace of institutionalization, boost the country’s economy, and encourage hundreds of thousands of institutions to move away from oil rentals and reflect on post-oil era and digital technology and foreign expertise. ”