The new investment law, passed on June 27 by the National People’s Assembly (NPN) and then on July 12 by the Council of the Nation, needs implementing texts to implement it. Industry Minister Ahmed Zegdar assured that the adoption of this law will be followed by the forthcoming publication of eight relevant implementation texts.
The minister confirmed that after the publication of these texts of applications, Algeria will become “a desirable place for all investors.” He will raise before the senators the question of the restoration of investment momentum in Algeria after a period of hiatus since 2018. Ahmed Zegdar also stressed the importance of this law, which tends to support and contribute to this dynamic. However, according to the Minister of Industry, this is not enough to stimulate investment in Algeria. He, in fact, insisted on the need to accompany this law with reforms in all related areas, in particular in banks and real estate.
For its part, the Committee of the Council of the Nation on Economic and Financial Affairs emphasized the importance of resolving the land issue, especially agricultural land, in order to facilitate the process of their provision for the implementation of investment projects. The Commission also called for the need to step up the role of the media and economic diplomacy to popularize the direction of Algeria, on the one hand, and to look for foreign markets to promote national production and marketing beyond the borders, d ‘somewhere else. In the same context, the commission recommends speeding up the promulgation and publication of normative texts specifying the timing of the implementation of this important law so that it enters into force soon.
Economic operators do not share government enthusiasm
It must be said that in order to apply this law, it is necessary to reform several sectors. These include laws on customs, taxes, local taxation, currency, and credit. It will also be necessary to ease the conditions, procedures and rules regarding the transfer of invested amounts and income received for non-resident investors.
In addition, it should be noted that some economic operators do not share the enthusiasm of the government. This is the case of the Center for Thinking Around the Company (CARE), which has several reservations. The center stressed that this new code in no way simplifies the procedures for investors, explaining that “the law must immediately offer a stable basis for the act of investing with clear and flexible procedures. But in practice, he refers most of the important decisions to implementation texts, which makes the text of the law opaque, not immediately effective and unstable, because even if the law does not change, the texts of the annexes can change the main provisions. and conditions.”
CARE also pointed out that this new law does not provide guarantees to entrepreneurs. “The law should encourage investment and, therefore, reduce investment risks. However, in the latest version of the bill, Article 27 puts investors at risk if they fail to complete their investment on time. Since everyone knows that non-compliance with the deadlines usually does not depend on the goodwill of the promoter, falling under the device of this law increases the risks for the company, and does not reduce them, ”explained the circle of reflections after the promulgation of the law. investment law.