Bussines in Algeria
The authorities were counting on economic growth of 3.5% in 2009. However, the actual growth was only 2.2% (compared with 2.4% in 2008), which was not
sufficient to curb unemployment and reduce poverty. This mediocre performance was due to oil and gas exports which fell by more than half. The weight
of the oil and gas sector as a percentage of GDP and of public revenue was an aggravating factor for the crisis, but the FRR reserve funds were used
for a countercyclical policy, which involved financing the fiscal deficit and a significant part of the PIP.
Thanks to an excellent cereal crop, the agricultural sector, which produces almost 7.6% of the country's wealth, grew by more than 17% in 2009,
according to initial estimates. The Rfig credit (Rfig means "companion" in the local Arabic dialect), which consists of a seasonal interest-free
loan from the Banque de l'Agriculture et du Développement Rural (BADR), also contributed to this strong growth, as did support for farm inputs,
which helped farmers reduce their costs and increase competitiveness. The producer prices of cereals, which have been aligned with international
prices since 2008, thus offer farmers profitable prices that provide them with an incentive. The prices of a quintal of durum wheat, common wheat,
barley and oats have been set at DZD 4 500, DZD 3 500, DZD 2 500 and DZD 1 800 respectively. On average, there are between 3.2 million and 3.5 million
hectares under cereal cultivation, about one-third of the total agricultural area. Thus cereal production, which accounts for nearly 32% of crop
production, rose to more than 60 million quintals in 2009, between 30% and 40% of which was barley.
This is a significant increase in production
compared with the 17 million quintals produced in 2008. Olive crop production in 2009 was 4.9 million quintals (2.5 million in 2008), citrus fruit
production was 8.5 million quintals (6.97 million in 2008), and fodder crop production reached 40 million quintals (19.5 million in 2008). Good
rainfall combined with the measures taken in the context of the 2008 agricultural framework law boosted the sector.
The elimination of DZD 40
billion of farm debt, agricultural-production and breeding bonuses worth DZD 200 billion for a year and new production contracts made with the
governments of the wilayahs (provinces) all contributed further to the growth in the sector. Other measures related to the legal mechanism for
farming on land belonging to the state (2.8 million hectares) will be implemented following the passing of a law on long-term concessions for
agricultural use, which aims to stabilise farming and protect rural areas, especially farmers.
How's the business in Algeria?
Algeria Business comments
I am trying to do business home so far it is not so bad.
Madja, Algeria, Paris
It's ok Now.
Ali , Algeria
it's wrong place to do business, corruption and harrasement for goverment officials.
Jamel , Algeria, London
you need to be a tief and corrupted persone to really succeed in doing business in algeria.
dahmane from London
dahmane , UK LONDON
Dahame, you're 100% right in London. It's the same old game. corruption, corruption. This's the way! I feel sorry to be an Algerian.
Mo , Algeria, Algiers
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