Algeria – Economic Freedom & Doing Business
Algeria has one of the slowest internet connections in the world and it has been reported that only 27.8% of its 38.7 million population had connection to the internet in 2015. The CEO of Algeria Telecom (AT), Azouaou Mehel has been in the news recently indicating that he plans to change this and said at the Algerian Managers Forum that:
“Algeria Telecom is in discussions with national industry groups for the local production of optical fiber and accessories that the company imports”
Another AT official was quoted as saying that AT plans to invest more than DZD40 billion (US$375 billion) during 2016.
While these plans are positive and definitely in the right direction, Algeria’s lag behind the rest of the world in getting connected is in many ways a reflection on other aspects of its economy.
Despite Algeria having the 10th largest gas reserve in the world and being the 6th largest gas exporter, The 2016 Index of Economic Freedom Report ranks Algeria’s as mostly unfree and its overall score is down by 0.2 since 2012. It is ranked at 154 out of 186 economies around the world indicating that most Algerians are still living lives of poverty and deprivation. The report indicates that the main areas of concern are regulatory inefficiency with slow inefficient public services and wide spread corruption especially in the highly lucrative energy sector. The government own the majority of the property in Algeria and housing and unemployment are consistently high.
The Ease of Doing Business Report 2016 also does not paint a bright picture. Algeria is ranked at 163 out of 189 economies at ease of doing business there and has not really improved in recent years. It has improved marginally in the last year in the area of starting a business by dropping the requirement to obtain managers criminal records. It has also improved its efficiency in the area of obtaining construction permits by dropping the requirement to getting a certified copy of the property title when applying for a building permit. While these two changes have reduced some time required for starting a business, they are far from the sweeping economic changes that are required to make positive change in Algeria.
Healy Consultants Group PLC have been incorporating companies in Algeria and the region for 10+ years and advise that doing business here is not easy and is fraught with red tape and delays. They recommend that selection of a local business partner (a requirement for business set-up) should be evaluated carefully to ensure success of your venture. Healy Consultants Group PLC can help you in this area as well as with company registration, bank account opening and other business start-up services. Contact us at
Company Registration Algeria: http://www.healyconsultants.com/algeria-company-registration/
Algeria, 2016 index of Economic freedom: http://www.heritage.org/index/country/algeria
Doing business in Algeria: http://www.doingbusiness.org/data/exploreeconomies/algeria/
Plans of Algeria Telecom: http://allafrica.com/stories/201602101776.html