Blessed Hirak’s 4th anniversary: Sneak peek into New Algeria’s political, social, economic gains, its pioneer role regionally, internationally (Special dossier)

By: Hana Saada

ALGIERS– Algerians will commemorate, this Wednesday, February 22nd, 2023, the 4^th anniversary of the Blessed Hirak, a peaceful popular movement with political demands which culminated in major achievements and gains; bringing an end to autocratic excesses and paving the way for a new and promising governance in line with the evolution of society, saving the national State from collapse, but also  giving birth to New Algeria.

The blessed Hirak, through its longevity and peaceful nature, unparalleled since Algeria’s independence (1962), is, like the national liberation war (1954-1962), a reference model in the world.

The movement aspired to give a new interpretation to the notion of citizenship in Algeria, with the involvement of citizens in the management of public affairs and their determination to take charge of their own fate.

On 22 February 2019, tens of thousands of people, of all ages and occupational categories, demonstrated in all cities of the country against President Abdelaziz Bouteflika’s plan to run for the fifth term. The protestors denounced, in the strongest terms, the corruption threatening the very foundations of the State, calling for an overhaul of governance.

Under the pressure of the Hirak movement, the presidential election that had been scheduled for April 18 was adjourned. After the resignation of Bouteflika on April 2, a second date was set (July 4), but the poll did not take place, for lack of presidential candidates. No candidacy application was validated by the Constitutional Council. The electoral college was convened for a presidential election on December 12 by the acting Head of State, the late Abdelkader Bensalah. The election of December 12, 2019 was hopeful in more ways than one, after a period of uncertainty. The previous adjournment exposed Algeria to an uncertain future amid vicious maneuvers and malicious plots of ignominious and hostile circles of handful henchmen of colonial infamy, haunted by their chronic hostility and rancour towards Algeria, aggravated by foreign interference aimed at challenging the stability and sovereignty of Algeria.

In short, this election spared Algeria from periods of transition, insofar as Abdelmadjid Tebboune announced deep reforms as soon as he was elected, while supporting the “Blessed Hirak.”

It is true that the election of President Tebboune was mourned by the death of Chief of Staff of the People’s National Army (ANP), Lieutenant General Ahmed Gaïd Salah, but it had the merit of being a decisive turning point that the country should not miss under any circumstances, at the risk of sinking into instability.

The command of the People’s National Army said it would make sure the election would go smoothly, dubbing the poll as the “safest option and the least costly” for the country. The Army command also supported justice in the fight against corruption. As a result, senior officials, including three prime ministers, a first since the country’s independence, oligarchs, tycoons  and businessmen were tried and convicted. More recently, the government managed to recover an estimated $20 billion looted from state funds, as the country continues its campaign against corruption. A National Agency for the management of frozen, seized and confiscated property and assets has been created.

Elected on December 12 as President of the Republic by 58.13% of the votes cast, Abdelmadjid Tebboune said, since his first address, he “reached out to” the Hirak movement, recalling that he had dubbed it “blessed” on several occasions. In this sense, the election of December 12 allowed Algerians to renew hope, especially since the new President of the Republic advocated, a unifying speech through which he excluded all forms of marginalization or exclusion, announcing, among other things, the profound revision of the Constitution and the continuation of the fight against corruption. He, marking the first anniversary of the Hirak popular movement, declared ‘February 22’ a “national day of fraternity and cohesion between the people and the Army for democracy”.

The new President called for a “serious dialogue in the service of Algeria” to build a new Republic, restoring by this act the constitutional legitimacy, but also hope for the entire country that had been on the verge of an acute crisis. He pledged to undertake in-depth reforms, including a new Constitution to be validated by a popular referendum.

With sure and studied steps and in an exceptional health situation marked by complex economic crisis, Algeria was able to win the bet of socio-political stability. In fact, President Tebboune’s 54 commitments were not simple electoral promises, but rather a national project.

Effectively, President Tebboune committed himself to building a strong, diversified, wealth-generating and job-creating economy capable of strengthening the country’s food security and protecting it from dependence on hydrocarbons, calling, in the same context, all “honest patriotic” businessmen and managers of public and private economic enterprises to invest in all sectors and in all regions of the country. President Tebboune had also announced the launch of an action plan aimed at young people to enable them to create start-ups and enjoy the benefits necessary for their success and the development of national production.

Noting that the constitutional reform was the current administration’s first step to address domestic concerns. These measures were illustrated by the adoption, by referendum, on November 01^st, 2020, of the new Constitution, the dissolution of the Parliament and the holding of both the legislative and local elections respectively on June 12, 2021 and November 27^th, 2021. The renewal of political institutions was essentially perceived as a strategy to change past autocratic practices. President Tebboune assured Algerians that he would respect and safeguard political and civil rights, and he released several political detainees through presidential pardons. Besides, he established the Constitutional Court to ensure the preservation of the rule of law and the protection of individual and collective freedoms. New laws have been passed.

Since then, New Algeria has witnessed very substantial changes reflected in the restoration of the State’s authority, the establishment of a new institutional structure worthy of big democracies, the strengthening of a social policy that protects the most vulnerable classes, the return in force at the international level, in addition to the digital transformation…. Once elected, President Tebboune was aware of what awaited him domestically and internationally. He quickly launched the institutional, economic, and political projects to change the practice of power and rethink a new democratic model.

Economically, New Algeria has embarked on a very ambitious reform program of its legal framework to boost all-around investments with the aim of achieving economic recovery and installing genuine long-term economic stability and prosperity. This latter is being achieved at different levels thanks to the judicious and far-sighted policy adopted by the country’s high authorities, under the leadership of the President of the Republic, Mr. Abdelmadjid Tebboune, Commander-in-Chief of the Armed Forces, and Minister of National Defense.

Algeria is deploying significant efforts to create an environment conducive to the transition from a rentier economy to an economy with diversified incomes without dependence on oil and price volatility on international markets. Start-ups, for their part, will fuel this transition. For this purpose, a ministerial department has been created and a bank is dedicated to monitoring and supporting young project leaders. Subsequently, thousands of Start-ups have been created.

The new incentives and the updating of the legal framework for investments offer promising prospects in Algeria resulting in a booming investment climate as President Tebboune vowed to make his tenure an economic era par excellence.

President Tebboune encouraged local production as our country enjoys significant technological capacities and human resources. He also rationalized the import operations with a view to protecting the national product and establishing a developed agricultural and industrial fabric, constituting the cornerstone of a solid national economy which guarantees the country’s national security in its global sense. Thanks to these measures, Algeria’s trade balance recorded a surplus of over USD 17 Billion. The foreign exchange reserves have recently recorded a marked increase of 60 billion dollars while the economic growth was 4.1% in 2022 and was expected to reach 5% in 2023. The import bill was reduced to 36 billion dollars to 38 billion dollars a year, against 63 billion dollars in the previous years.

For their part, non-hydrocarbon exports are on track to reach $10 billion in 2023.  Reforms in the foreign trade sector have resulted in a reduction of the number of importers from 43,000 to 14,096, and at the same time an increase in the number of exporters from 200, mostly irregular, to more than 3,000 registered exporters, including 1,500 exporters carrying out effective export operations.

Furthermore, Algeria projects a colossal budget of nearly 100 billion dollars for 2023, a first in the country. In view of these positive indicators, the beginnings of economic recovery are starting to appear, and the ambitious development program initiated by the President of the Republic, Mr. Abdelmadjid Tebboune, is currently materializing despite the difficult circumstances the country has gone through due to the repercussions of the crises that have affected the world over the past two years.

With regards to the energy sector, and aware of the fact that the economic recovery would not be achievable on the ground without energy security, a new law on hydrocarbons was ratified, addressing critical deficiencies of the former 2005 Hydrocarbons Law and related tax regimes.

Since the ratification of the law, New Algeria succeeded to reverse declining foreign upstream investments through improved contract terms and tax rates. It has created a more structured petroleum framework and a more favorable tax regime for investors, consolidating its role in the oil and gas markets at the regional and international levels.

As a results of the aforementioned reforms, Algerian state producer Sonatrach has managed to expand production, renegotiate prices, and sign new export deals, resulting in record production levels and a major financial windfall. A small comparison with the past showcases how the number of the concluded contracts has multiplied. Despite the four amendments to the 2005 law (in 2006, 2013, 2014, and 2015), this latter still featured high taxes and duties on exploration and production (E&P) activities, as well as unclear contract-sharing agreements with Sonatrach, the national oil company. Subsequently, Algeria repeatedly failed to attract foreign investors.  Statistics show that since 2010, the number of new contracts signed dropped to an average of only two signed contracts per year.

In response to this problematic situation, the New Law revived energy activity, attracting foreign investors. Multiple deals have been inked with major oil firms in Italy, Russia, China, Spain, France, among others, by the state-owned oil firm Sonatrach, considered as the locomotive of the national economy and an integrated group with an international dimension, operating on more than 150 oil and gas fields and having 22 000 km of pipelines, four natural gas liquefaction complexes with a capacity of over 50 million cubic meters per year, six refineries in Algeria with a capacity of over 30 million tonnes/year and major other infrastructures (gas pipelines, ships, port facilities) allowing it to maintain its export levels while ensuring the supply of the national market. In fact, thousands of contracts have been concluded so far.

As for the statistics of 2022, the importance of 2019 legislation became apparent this year with the signing of a $4 billion multinational oil and gas contract for a site in southeastern Algeria. The agreement brings together Sonatrach, Italy’s Eni, the US-based Occidental Petroleum Corporation, and the French company Total. This agreement followed several deals inked with foreign partners.

On another note, Algerian state firm Sonatrach operates in several countries – Libya, Mali, Niger and Tunisia – where exploration work has been initiated, sanctioned by several oil and gas discoveries in Libya and Niger. Regarding the supply of energy sources to the population, more than 99% of households have been connected to electricity and 65% to natural gas.

Attached to consolidate its social policy, Sonatrach has launched, in September 2022, in coordination with the local authorities, a social development program for the benefit of the inhabitants of the gray areas in different provinces of the country. To this end, several agreements were signed to finance projects for connecting neighborhoods and residential complexes to electricity, the purification of the main canals of the sewerage networks, and the construction of public facilities.

Sonatrach made a series of new hydrocarbon discoveries that can increase Algeria’s reserves and strengthen its position internationally as a reliable supplier of hydrocarbons, in a global context marked by a strong demand. Between 2020 and 2022, no less than 35 new hydrocarbon discoveries were recorded, including 34 discoveries in Sonatrach’s own effort.

These include oil discoveries at the Touggourt perimeter with a deposit estimated at one billion barrels, the Zemlet El Arbi research perimeter, in the Berkine basin, as well as a gas discovery condensate in the perimeter of Hassi R’mel (Laghouat).

The Sonatrach group had also announced a major discovery of condensate gas in the perimeter of Hassi R’Mel, in the Lias Carbonaté reservoir -LD2- at the level of an exploitation perimeter with a volume varying between 100 and 340 billion m3 of gas condensate, which constitutes “one of the largest revaluations of reserves in the last 20 years”.

Another important oil discovery was also made by Sonatrach, at Haasi Illatou in the Sbaa region (wilaya of Adrar), with preliminary  volume  that could exceed 150 million barrels. This discovery also comes 28 years after the last oil discovery made in the Sbâa region in 1994.

In addition to the announcements of these important discoveries, the national company had also communicated on the positive results of the drilling of oil wells, in particular those carried out successfully in the El Ouabed perimeter, located in the wilaya of El Bayadh at about 158 km to the east. West of Hassi R’Mel and a delineation well in the Touggourt Est I perimeter (North of the Hassi Messaoud field).

Thanks to substantial reserves of natural gas and the recent increase in production, the National Hydrocarbons Company is on the right track to become “one of the most important sources of gas supply in the world”.

Currently, the overall production of natural gas exceeds 130 billion m3, more than 50 billion m3 of which is intended for export. As for liquefaction capacity, it is estimated at more than 30 billion m3/year with the existence of 4 liquefaction complexes.

On this subject, the President of the Republic, Mr. Abdelmadjid Tebboune, had instructed, during his visit to the Sonatrach oil industries, the Algerian production fair (FPA-2022), the group’s leaders to increase Production to “reach a volume of 100 billion M3 of gas intended exclusively for export”.

The President of the Republic also called Sonatrach as “one of the powerful levers of national sovereignty” and “shield” which protects Algeria. Subsequently, Sonatrach has initiated a major budget for investment by 2026, of a global value of up to 40 billion dollars.

Sonatrach also has, as part of its investment plan, to consent more than $ 7 billion in refining, petrochemical and gas liquefaction projects.

Investment in renewable energy is of utmost importance, being one of the main factors to achieve energy security, and a geostrategic alternative in future energy thought.

A leading producer of natural gas and liquefied natural gas, Algeria also has ambitious renewable energy and energy efficiency programs that promise to expand its energy resources and support sustainable development. The country, with the Sahara Desert covering 86 percent of its area, enjoys both the potential and the incentive to maximize its natural resources and become a renewable energy leader. It has a year-round solar energy capacity, enabling it to be ranked 21st in terms of potential solar energy capacity.

As such, and amid oil and gas price volatility and increasing domestic electricity demand, the sun rose on Algerian solar energy, as the country is making notable progress in the development of its renewable energy sector, aiming to become a global competitor in the renewable energy marketplace worldwide. Accordingly, the government has set a target of deriving 27 percent of electricity generation from renewable sources by 2030 and increasing generation capacity from renewables to 37 percent by the same year.

Algeria set a renewable energy target of 22,000 MW of installed renewable capacity by 2030, with a growth rate of 1000 MW/year. Furthermore, around 1000 MW of off-grid renewable energy installations are expected to be put on stream by 2030. A new law on energy transition is being prepared. Furthermore, Algeria established the Ministry of Energy Transition and Renewable Energy (METRE) in June of 2020. In late 2021, the METRE published its notice of invitation to tender for 1,000 MW of solar power capacity which is expected to generate investments of around $800m.

Socially, President Tebboune granted presidential pardons to prisoners and released Hirak detainees, including revered national figure, the late Lakhdar Bouregaa. Also, President Tebboune introduced the unemployment allowance, covering up to two million beneficiaries. During his era, hundreds of thousands of dwellings have been distributed. A project to build an Algerian-Qatari-German hospital, with a capacity of 400 beds, was inaugurated last November.

By allocating nearly a quarter of its Gross Domestic Product (GDP), i.e. the equivalent of 5000 billion Da (35 billion Usd) to direct and implicit social transfers, Algeria is working to establish the social character of the State, regarded as an immutable principle.  At a time when the world is celebrating World Day of Social Justice, coinciding with February 20, the 2023 Finance Law, which enshrines the orientations of the President of the Republic, Mr. Abdelmadjid Tebboune, confirms this approach, through the many measures taken to preserve citizens’ purchasing power.

Indeed, these measures relate to the subsidy of mass consumption products, the revaluation of wages and the fight against illicit speculation, without, however, introducing new taxes, in addition to the promotion of local investment to ensure regional balance. In 2021, 2700 billion DA were allocated as subsidy of energy products, more than 400 billion DA for food products and more than 60 billion DA for water. Recently, President Abdelmadjid Tebboune ordered the Government to prepare the implementing regulations on the increase in salaries, retirement pensions, and unemployment benefits to begin their payment from January 2023.

Other social procedures were introduced, including, among others, the regularization of the situation of the beneficiaries of the integration mechanism, the exemption of salaries below 30,000 DA from the Global Income Tax (IRG) and the revaluation of the National Guaranteed Minimum Wage (SNMG).

Besides, the features of social reform are embodied through the great openness to the youth, who have gained a foothold in conducting and setting the parameters of development policies in various fields. The youth Supreme Council is considered the best image of the effective role of this group in the field of institutional building, in addition to the civil society, which now has an official body representing it, which, in turn, includes several youth competencies. Youth with university degrees, noteworthy, represents more than 70% of the Parliament’s deputies.

Internationally, and for decades, Algeria had been absent from the regional diplomatic scene. Although conflicts in neighboring countries posed a serious security threat, Algiers lacked modern and proactive policies to address them. As President Tebboune took office, he reasserted Algeria’s role in addressing regional crises.  Subsequently, New Algeria, whose foundations were laid by President Tebboune amidst international changing circumstances, has reinforced its regional and international position, playing a pivotal and pioneering role through its solidarity with the liberation movements in the world. New Algeria is playing a leading and axial geopolitical role in the region based on its long-standing principles. President Tebboune gave a new impetus to a disempowered diplomatic apparatus and in a very short time, he managed to place Algeria on the world chessboard.  Inspired by its anti-colonial struggle, Algiers is standing up as a voice of oppressed people, a defender of states’ sovereignty… It exerted huge efforts to rescind the observer status granted to the Zionist Entity in the African Union (AU). Last week, plans of the Zionists to sneak, once again, into the African Union have been, spectacularly, backfired by Algeria, one of Palestine’s strongest supporters in Africa and the whole world.

In addition, world leaders hailed Algeria’s efforts and the means it has mobilized to ensure the success of the Arab Summit held in Algiers. Besides, President Tebboune succeeded in unifying the Palestinian factions thanks to the signing of the Algiers’ Declaration.

Noting that in his first speech since being sworn into office, President Abdelmadjid Tebboune confirmed Algiers’ stances on various policies, stressing on Algeria’s fundamental principles, namely: the defense of national independence,  the respect for the territorial integrity, the recovery of national identity, the resusal of any form of internal interference and the foreign military presence on its soil, the rejection of alliance policy and military pacts, the active participation in the struggle against underdevelopment and poverty, the principle of reciprocity, the non-interference in other countries’ internal affairs and the peaceful settlement of crises.

Regarding Western Sahara, Tebboune highlighted Algiers’ principled stance towards this cause, renewing the country’s unwavering and unconditional support for the legitimate right of the Sahrawi people to self-determination through a free and fair referendum, and to stand by their side to reach a permanent solution to their just cause in accordance with international law and legitimacy, and in line with the United Nations doctrine of decolonization.

Broaching the situation in Libya, Algeria is still attached to the stability of this country, refusing to be kept out of the settlement process.

Algeria, under the leadership of President Tebboune, will continue to play a leading role in the resolution of the crisis in Libya. The main principles of the Algerian initiative are known. The solution can only be political and peaceful and can only emanate from the Libyans themselves with international support and notably neighboring countries.

Algeria has, as part of its tireless efforts aimed at reaching a solution to the Libyan crisis, relaunched several mechanisms. It hosted the foreign ministers meeting of Libya’s neighboring countries (Algeria, Tunisia, Egypt, Chad, Sudan, and Niger) to establish coordination and promote dialogue between these countries.

With respect to Arab causes, President Tebboune stressed, on multiple occasions, that the Palestinian cause is a constant of the foreign policy of the Algerian state. Algeria will remain a support for Palestine and its people who are fighting against a brute colonial force until the achievement of their independent state.

Besides, Algeria voiced rejection of the Middle East peace plan sponsored by US President Donald Trump, which gives the Zionist Entity the right to have Jerusalem El Quds as its capital.

Finally, how not to indicate Algeria’s decision to join the BRICS group, consisting of Brazil, Russia, India, China and South Africa, as the bloc accounts for about a quarter of the world’s gross domestic product.

As for the sporting events, world organizations hailed the exceptional organization of the multisport events held in Algeria. In fact, the sumptuous and majestic organization illustrates the leading role of our country in all spheres.

To conclude, New Algeria, under the far-sighted vision of President Tebboune, has experienced, during this period, half of which was under the coronavirus pandemic, significant development and radical transformations. Today’s Algeria can be proud of its pioneering position as a pivotal country. It is laying, as a strong energy partner for all the Mediterranean countries, the foundations of intelligent industrialization and modern agriculture.

Under the leadership of President Tebboune, Algeria has become an attractive country that is able to join the BRICS group. Eager to anticipate tomorrow’s big challenges, President Tebboune has never ceased to surprise us, and the year 2023 will be full of good surprises.

Today; four years after the famous Friday, February 22nd, 2019, we should pay tribute to the Great Algerian People  who saved the Republic and gave an unforgettable lesson in citizenship and democracy to the whole world. We should say thank you to the People’s National Army which, as always, exerted tremendous efforts for a rapid return to the legitimacy of the institutions, resulting in the transparent election of “Uncle Tebboune” as Algerians along with their Arab brothers prefer to call him thanks to his remarkable and honorable principled positions in the service of his people and the Arab nation. Thanks to the realization, on the ground, of all his commitments, President Tebboune is in the process of radically transforming Algeria, which has earned him the esteem of an entire people, who aspire to live in a new, safe and prosperous Algeria.

“Long live free, sovereign, serene and prosperous Algeria.

Eternal glory to our valiant Martyrs.”