2023-11-20 16:41:38
ALGIERS – Economists have welcomed the decisions taken by the President of the Republic, Mr. Abdelmadjid Tebboune, during his recent meeting with economic operators, including support for small and medium-sized enterprises (SMEs), the opening of the banking sector to private investment and the opening of the capital of certain public banks, believing that these measures will give a new dynamic to the banking system.
These experts welcomed, in statements to the APS, the desire displayed by the President of the Republic, during this meeting, having brought together business leaders and investors from all the wilayas of the country, to support efforts aimed at to remove the bureaucratic obstacles that investors and project leaders have faced for a long time, affirming that the new law on economic land, which came into force recently, provided for new mechanisms guaranteeing transparency and efficiency in the allocation of land .
In this regard, economics professor Ishak Kherchi indicated that SMEs constituted the basis of economic diversification with a view to freeing ourselves from dependence on hydrocarbons, adding that the national economy needed a denser fabric of these companies to create a greater dynamic in terms of employment and thus contribute to increasing the country’s GDP.
Underlining, moreover, the role of the Algerian Start-up Fund (ASF), Mr. Kherchi called on employers’ organizations, in particular the Algerian Economic Renewal Council (CREA), to support this type of companies, which benefit from great growth capacity.
Responding to a question on the decision of the President of the Republic to open the banking sector to private investment, the economist affirmed that it was an “important decision”, calling, however, to “cap the public financing of private projects, public funds must be primarily directed towards public investments, major infrastructure and housing.
According to him, the private sector in Algeria must be able to participate in the financing of projects and contribute to the capital of certain public banks, in order to “circulate part of the hoarded funds and play a role in the new economic dynamic that Algeria is experiencing.”
In turn, economist Kamel Kheffache estimated that the decision providing for the opening of part of the capital of two or three public banks, at the beginning of 2024, up to 30%, “will contribute to the revitalization of public sector banks and improving their management and governance.
The measure setting a maximum deadline for implementing State decisions welcomed
The economist welcomed, on this occasion, the decision of the President of the Republic relating to the opening of investment in the banking sector to the national private sector, in that it will allow, he said, consolidate the banking system, while giving new impetus to the financing of economic activity.
The expert also welcomed the instructions given by President Tebboune to continue efforts aimed at removing all obstacles encountered by investors and industrialists, highlighting the recent measures which made it possible to lift the freeze on more than 900 projects across the country, via the Mediator of the Republic, allowing the creation of 22,000 jobs.
Insisting on the importance of monitoring on the ground in this matter, Mr. Kheffache praised the decision of the President of the Republic relating to the imperative “implementation of decisions and measures taken by the State within a maximum period of 30 days”.
Regarding investment, the economist affirmed that the promulgation of the new law on land, which is part of the structural reforms carried out in the economic field, will allow operators to easily access land, which will boost the small business activity, employment and the creation of non-hydrocarbon wealth, particularly in the industrial and mining sectors.
For his part, Omar Haoun, professor of economics, affirmed, in this sense, that the law on land “comes to put an end to the anarchy which reigned in recent years”.
This text establishes new mechanisms for the granting of economic land through the digitization of the operation via a special platform under the Algerian Investment Promotion Agency (AAPI), he explained, commending the instructions given by the President of the Republic to state institutions, notably the Prime Ministry and the various ministries, to keep their doors open in order to resolve the problems facing investors.
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