Questions and answers

1. Guarantee of transfer of dividends and profits and income.

The law guarantees the transfer of dividends, profits and income made in the course of investment from external contributions by a simple authorization, without delay, from commercial banks and authorized financial institutions.

The transfer is made   after payment of taxes.

The law does not require prior authorization from the Central Bank, which exercises a posteriori control over its operations.

2. Sectors of the future (sunrise sectors)

Many sectors are at the heart of the government’s new strategy and are open to cooperation and partnership between the two countries. In particular digitalization, information and communication technologies, (ICT), finance, fintech pharmaceutical, Mining, agricultural, Renewable energy (solar, thermal, biomass, wind power), launching of startups. Agricultural sector.

3. Industrial land

The foreign investor can access a land base for the realization of his project by cession or rental from a private owner, as he can benefit from private land from the State ceded as a concession.The concession is authorized by a decree of the Governor together with a specification of the rights and obligations of the investor for a period of 33 years renewable twice against the payment of a royalty.   

4. Investment in the agricultural sector in Algeria

A new strategy has been put in place by the Ministry of Agriculture to increase the growth of agricultural production and exports of agricultural products.- Algeria encourages foreign investors with skills and know-how to invest with local partners in the agricultural sector.- possibility to access to agricultural land (land concession for a period of 40 years),- Development of integrated farms and mechanization of agriculture.- Promotion of production of the red and white meat sector and market garden products.- Development of Saharan industrial agriculture:  – Investment program: construction of a slaughter and cold complex.- Main areas of investment: (cereals, vegetables and fruits, milk, meats, dates).

5. Investment opportunity in the digital sector in Algeria
– digitization of the administrative procedure
– electronic payment huge needs in all sectors 
– securing of systems and data bank.

6. Investment in education

A bilateral agreement establishing a British school was signed between the two countries in March 2020. The school opened for the start of the 2020-2021 school year. 

7. Measures for the benefit of Start-ups. Creation of a national fund, based mainly on Venture Capital in order to avoid commercial bank financing which requires guarantees beyond the reach of a start-up;

Tax exemptions of up to 5 years for the benefit of Start-ups

8. Import operations

I can tell you that the government is in the process of amending an executive decree that is 15 years old.  The new decree will set new procedures for import of raw materials and   products and goods intended for resale without transformation. The new text aims “to fight the spread of offenses such as overbilling, the rental of trade registers and the non-localization of importers.  This new decree requires the importers to obtain a certificate of specialization and to subscribe to specifications (cahier de charge).

Let me give you some figures: in 2019, 900.000 import operations were registered worth 16,5 billion dollars not counting imports of raw materials and manufacturing products and we suspect that there a lot cases of overbilling and falls importers. 

Since last year, implementation of the PROVISIONAL ADDITIONAL SAFEGUARD DUTY in order to reduce the trade deficit, preserve foreign currency reserves and promotes local production

9. Venture capital in Algeria

Venture capital companies in Algeria can have a maximum participation of 49% in the creation of a business and a participation period varying between 5 and 7 years.

Many venture capital companies are operational. They are all subsidiaries of public banks. The procedure that project promoters must follow to receive financing is the same whether it is for the creation of a company, the extension of the activity of a company or the takeover of a company. Promoters can call on one of these investment companies to acquire a stake in the capital of the company to be created. They can find precise guidelines and information in this direction at the level of the agencies of the public banks in their places of residence.