Algeria, land of investment

National Agency of Investment Development

©2017

The Market

THE 05 ASSETS OF

THE MARKET

THE 05 SECTORS TO

INVEST IN

The encouragement scheme

INCENTIVES AND AID

PRINCIPLES AND

FOUNDATIONS

Content

• local market: 2 381 741 km² with 40 million inhabitants. • surrounding markets : 125 million inhabitants

1. Size

•geostrategic position: Direct and rapid access to major markets : Africa, Europe, Mashrek and Maghreb.

2. Location

• 47 billion USD of imports in 2015 ( equipment & machines – buiding materials – agroalilmentary • Sectors’ development programs.

3. Needs

•Natural : gas - oil - ores - sunshine •Human : 91 Univ. - 731 professional training schools

4. Resources

• Natural gas : 0,21 to 0,40 euros / thermy • Fuel: gasoline: 0.33 euros / L - diesel: 0.19 euros / L • Electricity : 1- 4 euro cents / kWh on average • Salaries: 180 to 900 euros (MGS is set at 180 euros)

5. Profitability

The market - Five major assets

The market - 05 priority sectors to invest in

The New model of economic growth

built around a dynamic of investment and enterprise development and valorization,

based on a new mode of financing (namely the market resources, the various forms of savings.

aims the economy diversification and competitiveness, oriented towards substitution to import and increase in exports.

Relies on the consolidation of 05 priority sectors development

The market - 05 priority sectors to invest in

AGRICULTURE

Main assets of Algerian agriculture - Wide variety of agro-climatic environments - Low use of chemicals -A large market with the availability, throughout the year and off season of a wide range of products of High quality products and even biological.

Agricultural activities to be developed

•Breeding farms •Seeds and plants •Milk / Dairy Farms •agricultural areas •agricultural mechanization Distribution Forage Crops •Irrigation systems •fertilizers •networks •cold storage transportation •Promotion of terroir products •Slaughter complex

1

The market - 05 strategic sectors to invest in

Industry

Major Axis of Industrial Strategy

01. Sectoral deployment of industry: valorization of natural resources, densification of the industrial fabric and promotion of new industries. 02. Spatial deployment of the industry: the establishment of modern and intelligent reception infrastructure, and the increase and improvement of land supply. 03. Industrial development policies: business upgrading, innovation, human resource development and promotion of investment, including foreign investment. 04. Identification of the sectors to be promoted, in particular the sectors with high potential, supported by the international market)

Strategic industrial activities

2

10. Food processing, 11. Textiles and Clothing, 12. Leather and derivatives 13. Wood and Furniture Industries

1. Iron and steel, 2. Hydraulic binders, 3. Mines and ores 4. Electrical and electrical appliances, 5. Industrial chemistry, pharmaceuticals 6. Mechanical and automotive, 7. Advanced technologies, 8. Aeronautics, 9. Shipbuilding and repair,

The market - 05 strategic sectors to invest in

Energy - National program

The integration of renewable energies into the national energy mix : a share of nearly 27% in electricity production.

The implementation of renewable energy program : 22 000 MW to be achieved over the period 2015-2030, of which + 4500 MW by 2020.

The distribution of this program by technology activities: Photovoltaic Solar: 13,575 MW Wind energy: 5010 MW Thermal Solar: 2000 MW Biomass: 1,000 MW Cogeneration: 400 MW Geothermal energy: 15 MW

A program open to national and foreign public and private sector investors.

Incentives granted through the National Fund for Renewable Energies and Cogeneration (FNERC).

The set up of renewable energy capacities according to he specificities of each region

3

Tourism

Adoption & implementation of The Master Plan for Tourism Development "SDAT 2030 through : - The enhancement of Algeria as a Destination; - The implementation of a Quality Tourism Plan (PQT) - The improvement of tourist offer development mainly through investing; - PPP to strengthen the tourism chain;

The activities to be developed : - Hotel / Catering / Resort - Seaside Tourism - Tourism in Mountains - Saharan Tourism - SPA tourism - Health tourism -Development and diversification of tourism -products - Quality & Brand Development, & Labeling

The market - 05 strategic sectors to invest in

4

The market - 05 strategic sectors to invest in

ICT

•Algeria won 9 places in the ITU ranking for the year 2016, moving from 112th to 103rd place. •3rd most "dynamic" in the world , and positioned among those who have made substantial progress •Very important achievements : •Terrestrial optical fiber link Algiers / In Guezzam (south), •03 submarine optical fiber link : totaling 600 Gbs •Mobile telephony: 03 operators totaling close to 45 million subscribers and the 3G being in operation since 2014 and expanded by 2016 to 4G. •Telecom by satellite: implementation of platforms, offering (VSAT, IP phone, Videoconferencing, Geo localization etc.), and the launch in 2017 of Alcomsat-1 satellite, for the Internet connection. •Other areas for investment: digital economy, Technology Parks (Innovation R & D and the ICT industry), Electronic banking, e-Learning, e-administration, Telemedicine, Electronic certification, Data banks security systems, Postal service modernization, Antennas and satellites, Space infrastructures,

5

The Investment support scheme - The foundations

PROTECTIONS The possibility of administrative and judicial apeal Possibility of recourse to international arbitration Membership in various international conventions on

investment guarantee and protection 48 encouragement and protection agreements

ENCOURAGEMENT Incentives and aids Support and monitoring Facilitations

GARANTEES Transferability of invested capital and income from it No discrimination between investors Non-retroactivity of laws

Incentives in ordinary law

Avantages communs

Additional incentives

Exceptional incenyives

Incentives decided in the framework of the common law, in terms of Taxation, Financing, Land charges, and social charges.

Investments in the production of goods and services not excluded, according to location (North - South & High Plateaus

Strategic activities ( tourism, industry and agriculture) Job-creating activities (more than 100 jobs)

Investments of national interest. Advantages established by a convention after approval of the CNI.

The Investment support scheme - Levels of incentives

exemption up to 10 years (depending on location and size of the project) of most important taxes

Taxation & parafiscality

Through aid for: access to local financing of projects (FWI) bonuses in interest rates, guarantees for credits.

Financing

Facilitating access to land (mutual agreement form, single vis-à-vis reduction in rental fees, etc.)

Land

Social charges

Reduction in expenses of contribution to social security (recruitment of young job seekers)

A PACKAGE

The Investment support scheme - Content of incentives

They have trusted Algeria and now they’re success stories

DESIGNATION

NUMBER OF PROJECTS

AMOUNT (Millions US$) EMPLOYEMENT

Declared

achieved Declared achieved Declared achieved

TOTAL

12 8 124 15 4 846 1 343

And so did portuguese compagnies

Investing in Algeria means: Invest in a strategic and safe market, offering interesting

and even attractive comparative advantages, Enter to real business opportunities and establish win-win

partnerships Invest in sustainability and continuity Contribute to the Algerian economy development effort

and be considered as a reliable partner And remember, for those who see a long way off, Algeria is

closeby.

www.andi.dz

Conclusion

So ? … Deal ?

Thank you for your attention