Algeria's Industry Minister Ferhat Aït Ali Braham has stated that the prices of used vehicles imported under the new regulations will not be significantly lower than those of new vehicles. The difference in price is largely due to the value of the Algerian dinar on the parallel market and customs duties. The minister made these comments at the El-Moudjahid forum, addressing concerns about the impact of the new import regulations on the local market.
The implementation of the new regulations has been delayed due to the lack of completion of work by a group consisting of three ministries, including Industry, Commerce, and Finance. The group is working to finalize the necessary texts to allow the importation of vehicles under three years old. Minister Aït Ali Braham emphasized that the government is working to launch the importation process effectively.
The minister also addressed concerns about the importation of diesel vehicles, stating that the quality of diesel fuel used in Europe is different from that used in Algeria. This statement challenges the previous justifications for restricting the importation of diesel vehicles, which cited environmental concerns.
Minister Aït Ali Braham announced that a new cahier des charges (terms of reference) for the automotive industry will be published within two months. The new regulations will not require foreign investors to partner with local companies, effectively ending the 49/51 rule that had been imposed on foreign investors in various sectors.
However, the minister emphasized that foreign investors will be required to bring in financial and technological contributions. The new cahier des charges will impose requirements on investors, including a majority investment if necessary, and the initial production of certain equipment, such as car bodies and chassis.
The Algerian government is considering ceding state-owned enterprises in the heavy industry sector to the National People's Army (ANP). Minister Aït Ali Braham cited the lack of discipline and poor management as reasons for the difficulties faced by these enterprises. He noted that the ANP has demonstrated a more disciplined approach to management, citing the example of the Mercedes factory in Tiaret.
The minister also addressed the financial difficulties faced by state-owned enterprises, including the ENIEM electromechanical company in Tizi-Ouzou. He attributed the problems to unfair competition from companies that have benefited from exemptions and other privileges. The minister announced plans to revise the cahier des charges for the industry to ensure that investments are more beneficial to the national economy.
Key points
- The Algerian government plans to revise the cahier des charges for the automotive industry to attract foreign investment and promote local production.
- The importation of vehicles under three years old is expected to start soon, with prices not significantly lower than those of new vehicles.
- The government is considering ceding state-owned enterprises in the heavy industry sector to the National People's Army (ANP).
