Tizi Ouzou's Economic Zones Hampered by Inefficiencies and Lack of Infrastructure

The Algerian government has attempted to boost economic growth and job creation in the Tizi Ouzou region by establishing several economic zones. However, these zones have faced significant challenges, hindering their effectiveness. Despite being allocated into lots for operators to set up projects, many areas remain underdeveloped and unutilized. The lack of infrastructure, including access roads, electricity, and sanitation, has discouraged investment.

According to reports, 14 economic zones in the region are managed by the Industrial Zones Management Unit (Divindus), while others are overseen by the Land Agency or local authorities. Nevertheless, many allocated lots have not been utilized, and some have been repurposed for alternative uses. For instance, certain beneficiaries have constructed housing, while others have transformed their lots into olive groves. This has resulted in a significant number of zones lying idle.

The development of economic zones in Tizi Ouzou has been plagued by issues such as expropriation disputes and inadequate compensation for affected individuals. Furthermore, some allocated lots have not been formally registered, and many zones lack basic infrastructure. As a result, not a single zone in the region is fully operational. The situation has led to frustration among investors, who face numerous obstacles when attempting to establish projects.

The zone of Tala Athmane has been particularly affected, with reports indicating that it has been converted into an informal dump. This has raised concerns about the environmental and health impacts on the surrounding community. Moreover, many investors have expressed difficulties in navigating bureaucratic processes, which has discouraged them from pursuing their projects.

Despite 600 investors registering for projects in the region, only 50% have managed to establish their businesses. This has been attributed to the incomplete state of many economic zones, some of which were created as far back as the 1970s. To revitalize the regional economy, stakeholders emphasize the need for the government to reassess the investment process and address existing challenges.

Experts argue that the Algerian government must prioritize the development of infrastructure and services in economic zones to attract investment and create jobs. This includes ensuring access to essential services such as electricity, water, and sanitation. Additionally, streamlining bureaucratic processes and providing support to investors can help stimulate economic growth in the region.

The Tizi Ouzou region's economic development is crucial for addressing social issues such as unemployment, which remains a significant concern. By addressing the challenges facing economic zones and promoting a more favorable investment climate, the government can help unlock the region's potential and create new opportunities for growth and job creation.

Key points

• Only 50% of 600 registered investors have successfully established projects in Tizi Ouzou's economic zones.