Algerian Minister Aoun, Guest of El Moudjahid Forum : “Algeria’s Industrial Sector Surges Forward”
✏️ BY: Dr. Hana Saada
Algiers- Algeria, May 13, 2024 – Nearly 159,000 vehicles were imported under the quotas granted to dealers for the year 2023 out of a total quota of 180,000 vehicles, stated Minister of Industry and Pharmaceutical Production, Ali Aoun, in Algiers on Sunday.
Speaking at the El Moudjahid Forum to review the main indicators of the country’s industrial sector, Aoun disclosed that as of April 18th, 159,037 vehicles had been imported under the quotas granted to 24 dealers for 2023, including 137,982 passenger cars, utility vehicles, and light commercial vehicles. The minister, however, lamented “certain practices by dealers contrary to the specifications, which disadvantaged some customers, especially through non-compliance with delivery deadlines.” “Some dealers have engaged in illegal practices, prompting us to create a platform to handle customer complaints for nearly two months,” Aoun stated, noting that this platform had received nearly 20,000 complaints as of yesterday. According to the minister, some dealers had been warned through formal notices, and further actions would be taken, including revocation of licenses “in case of recurrence.”
Asked about the interest in increasing the integration rates of vehicles, Aoun explained that the goal is to create a network of subcontractors allowing for an acceptable level of integration. However, he emphasized that “what matters is manufacturing regardless of the origin of the part,” citing major European brands manufacturing the majority of their parts outside their countries. Regarding the quotas for the year 2024, Aoun stated that nothing had been decided yet, emphasizing the need for the country to preserve its foreign exchange reserves in a very uncertain global economic environment. He also noted that the Fiat plant in Oran produces 3 cars per hour, and the production of the Doblo will soon begin.
Agroalimentary: Unprecedented Growth
Discussing the industrial sector, the minister highlighted that its contribution would reach 10% of the GDP by 2027, up from the current 4.1%. Aoun indicated that the local industry “aims to contribute more significantly to the country’s GDP through all sectors, including automotive, cement, pharmaceuticals, and transformation, particularly agroalimentary.” In this regard, he mentioned the automotive and pharmaceutical sectors as “demanding markets” that can attract both local and foreign investment. Additionally, Aoun emphasized the progress made in various industrial sectors, thanks to the implementation of a ministry roadmap aimed at developing high-potential industrial sectors and strengthening the value chain in sectors such as agroalimentary, steel, chemistry, mechanics, textiles, construction materials, and pharmaceuticals.
He unveiled the roadmap of his sector for the revival and promotion of national industry, which focuses on four major axes: the development of strategic sectors, the removal of obstacles hindering the development of certain sectors, the reinforcement of support mechanisms, and the management of unexploited economic assets. He explained that the elaboration of this strategy was preceded by a precise diagnosis of the current situation. In this context, he indicated that the precarious situation of some public enterprises, except for the public group Madar Holding and Gica, is the result of the “famous” 2018 organization that established “unmanageable” large industrial groups. To revitalize struggling public enterprises, Aoun stated that his department had established “performance contracts.”
Four Projects for Yeast Production
The minister highlighted the robust health of the agroalimentary sectors, which have been able to cover 90% of national needs, contributing 50% to the GDP excluding hydrocarbons. For instance, vegetable oil production has seen “significant growth” with the launch of several projects and the upcoming start of production for others, such as the vegetable oil production plant in Jijel or the edible oil refining unit of the public company Mahroussa, a subsidiary of the Agrodiv group. The same goes for sugar production, with the refinery in Larbaâtache expected to start operations before the end of the current year, acquired by the public group Madar.
The minister also mentioned yeast production, announcing that his ministry is currently supporting the implementation of four projects in Djelfa, Oran, Tipasa, and Chlef. He indicated that the reception of at least two projects is expected before the end of the year, thereby reducing the import bill for this material, which is around $89 million.
Over $700 Million in Cement Exports
Aoun also mentioned the country’s strong capacity for cement exports, noting that Algeria has quickly transitioned from an importing to an exporting country, with $747 million in exports in 2023. The same applies to the ceramic sector, which is “doing well,” with exports aiming for €100 million this year. Additionally, the electronic and household appliance industry is booming with “varied and exportable” products, as the sector covers between 120 and 140% of national needs. On this point, he highlighted the resurgence of some industry leaders, particularly Enie and Eniem, after challenging years.
Another sector experiencing a revival is leather and textiles. In this regard, Ali Aoun announced new measures for the upcoming sheepskin recovery and collection operation. He indicated that his department would establish a symbolic remuneration to encourage collection, recalling that last year, 1.2 million skins out of 4 million sacrificed sheep were collected.
Regarding recovered land, the minister declared that 6,000 hectares of unused land had been recovered from speculators and were being transferred to the National Investment Promotion Agency. He announced the creation of an EPIC (Public Industrial and Commercial Institution) to manage industrial zones.
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