The investment fund of Tizi Ouzou's wilaya in Algeria has seen minimal exploitation, with only three operators benefiting from it since 2015. One of these projects has already begun operations, while the other two are expected to start soon. According to Boulardjem Abdelkader, a representative of the fund's management company, FINALEP, this underutilization can be attributed to a lack of communication and awareness about the fund's existence and benefits.
FINALEP was established in 2011 as a pioneering Algerian experience in capital investment, created by two banking institutions, BDL and CPA, in collaboration with two European financial institutions, the French Development Agency and the European Investment Bank. The company's primary objective is to provide financing for small and medium-sized enterprises in Algeria, addressing their specific needs. However, despite its creation, the fund has failed to gain traction among local entrepreneurs.
The management of the fund was initially entrusted to a public bank, but FINALEP took over in 2015. Since then, the company has approved three financing agreements with different economic operators. Abdelkader emphasizes that there is a need for increased efforts in promoting and communicating the fund's benefits to potential beneficiaries. He notes that many young local promoters are unaware of the fund's existence, which has limited its impact.
The investment fund is open to various economic sectors, including semi-manufacturing, pharmaceuticals, agro-food, tourism, and hospitality. The maximum loan amount is 100 million dinars from the wilaya's investment fund and 180 million dinars through direct financing from FINALEP. Abdelkader explains that the fund's role is to support project owners by providing them with the necessary funds to consolidate their equity, addressing a significant challenge in project implementation.
Abdelkader highlights that the fund is not a traditional bank credit, but rather a participation that grants FINALEP a limited partnership status for 5-7 years. He encourages project owners to understand the fund's nature and benefits, emphasizing that it can help them develop their businesses. The fund is part of a broader initiative, with similar funds established in 48 wilayas across Algeria to support economic development.
The underutilization of the investment fund has sparked concerns about its effectiveness. Abdelkader notes that between 2011 and 2016, there was significant interest in the fund, but this was during a period when FINALEP was not responsible for its management. Since 2016, several project proposals have been submitted, but only three have been approved. He attributes this to a lack of awareness and understanding about the fund's benefits and requirements.
FINALEP aims to increase awareness and accessibility of the investment fund to potential beneficiaries. Abdelkader emphasizes that the company's doors are open to project owners and encourages them to explore the fund's opportunities. The fund's goal is to support the growth of small and medium-sized enterprises, ultimately contributing to Algeria's economic development. To achieve this, FINALEP plans to enhance its communication and outreach efforts to promote the fund and its benefits.
Key points
- Only three operators have benefited from Tizi Ouzou's investment fund since 2015.
- The fund's underutilization is attributed to a lack of communication and awareness about its existence and benefits.
- The investment fund provides financing for small and medium-sized enterprises in various economic sectors.
