Tag: Algeria

Why Algeria needs to invest in Africa

 

Résultat de recherche d'images pour "bouteflika african union"

As the fall of oil prices hits Algeria very linked by oil and gas export representing almost the majority of its exports, Africa is become the most relevant solution to change the algerian economics structure and to give the opportunity for the biggest country in Africa to be an african power. For this, Algeria has to rely on its strenghts to conquest the african market.

Firstly on the energy sector. Algeria is the first gas producer in Africa and the third oil producer. With its state oil company, Sonatrach which is the first most power company in Africa, Algeria can play a major role in the development of some oil and gas fields in Africa in proposing their service more fairly contrary on west oil major which doesn’t care about the developement of african countries generally. Already, Sonatrach is present in Lybia, Tunisia, Mauritania, Mali but Algeria has to get some contracts in East Africa especially with gas discover in Mozambique. Algeria can mobilize some other companies in the electricity domain in particulary in the green energy with its companies  like Sonelgaz which is specialized in the solar energy and which is launching some projects in Mali and in Sudan.

Algeria can also use its strenghts in telecom services for the rest of Africa. Indeed, Algérie Telecom, the algerian leader in the communication is working on the project to link the internet network access between Algeria with a part of Africa (Sahel and Nigeria) in the next years. With the difficult access in internet, Algeria could be the spearhead of new technologies in Africa. Algeria can also ask to the private companies to invest more in Africa, like Cevital, the first private conglomerate in Algeria, Condor specialized in new tech (phone, tv..), Saidal pharmaceutical company which invest already in Africa (Ecowas countries) or yet the private sector of bulding companies very important in Algeria.

Thus, Algeria can diversify its economy thanks to the growth in Africa. Neverthless, the algerian authorities must ease the development of their private and public companies in relieving of the administrative burdens which are the main brake in Algeria.