✏️ BY: Dr. Hana Saada
Algiers, Algeria | May 18, 2024 — The Ministry of Industry, led by Ali Aoun, is set to implement significant reforms aimed at reorganizing the commercial sector, reviving struggling public groups, and boosting the performance of the national industry. These priorities are part of a comprehensive roadmap designed to stimulate growth and efficiency in the industrial sector. Aoun has announced upcoming measures, including the revival of the National Company of Electronic Industries (Enie) and the removal of obstacles for certain investors, to energize a rapidly developing sector.
Addressing the National Industry
Speaking on national radio, Minister Ali Aoun outlined his department’s roadmap, emphasizing the transformation of the industrial sector’s organizational structure, especially in areas where raw materials are available to meet national needs. He highlighted the necessary efforts to invigorate this sector, acknowledging the challenges faced by key stakeholders.
No Distinction Between Public and Private Sectors
When questioned about the roles of public and private operators in the national market, Aoun clarified that he does not differentiate between the two, instead referring to them collectively as “national enterprises.” He emphasized that enterprises owned by nationals and those formed through partnerships are all Algerian legal entities. He noted that the private sector currently manages 90% to 95% of several national industrial sectors, demonstrating its ability to adapt to new market conditions, invest in promising areas, and manage its affairs efficiently. Aoun pointed out that the public sector has been hindered by an imposed organization since 2018.
Public Sector Management Issues
Aoun illustrated his point by discussing the public commercial sector, which has undergone several organizational phases, culminating in the establishment of industrial groups in 2018. He remarked that these groups are “humanly unmanageable,” given that each of the 13 groups comprises about 20 to 30 subsidiaries, with each subsidiary potentially operating up to six production units. He questioned the feasibility of managing such complexity.
Upcoming Reorganization
Due to the difficulties leading to the bankruptcy of several enterprises within certain sectors, Aoun announced a reorganization of the commercial sector by the end of the year. This reorganization aims to enable struggling industrial groups to recover and be better managed to meet market demands. However, he acknowledged that this measure alone would not be sufficient, as these groups face significant management challenges.
Revival of Enie
Aoun emphasized that effective management requires providing managers with the necessary resources, as demonstrated with the success of Eniem in Tizi Ouzou. He announced that Enie would similarly “rise from the ashes” through financial and organizational investments. He cautioned that he would be more demanding in the future once the conditions for optimal functioning of these enterprises are met.
Performance Contracts and Remuneration
The minister highlighted the importance of performance contracts, which allow for the evaluation of individual and collective performances. He stressed the need to revise the remuneration system to include performance bonuses, moving away from a linear salary system.
El-Hadjar Steel Complex
Aoun cited the El-Hadjar steel complex as an example of improved performance due to the implementation of performance bonuses. He asserted that El-Hadjar is not a “financial black hole” and continues to export its products. Describing it as a “flagship of the national economy,” Aoun announced that the complex would be rehabilitated and relaunched through a partnership.
Access to Bank Credit
Addressing the difficulties faced by private sector operators in accessing bank credit, Aoun referred to the President’s statements, affirming that the private sector is welcomed. He noted that the private sector heavily relies on state resources, particularly credits provided by public banks. Regarding investors whose projects were blocked, Aoun announced that the old decree impeding investors before 2019 is now obsolete. The new decree, which has been published, lifts the constraints on about thirty previously blocked investors.
These reforms and measures outlined by Aoun represent a strategic effort to modernize and enhance the efficiency of Algeria’s industrial sector, ensuring its sustainable growth and contribution to the national economy.
Translated from:
https://lalgerieaujourdhui.dz/entreprises-publiques-aoun-prepare-sa-grande-reforme/
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