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  • Germany - Algeria business ties

    The executives of the Algerian-German chamber for commerce and industry expressed, on Thursday, after the announcement of its official creation and the opening of its office in Algiers, their commitment to play a facilitator role for the German investors to have better place in the Algerian market, and to facilitate the work of Algerian investors in Germany, plus the improvement of the image of Algeria.

    The minister of commerce, Elhachemi Djaaboub, points out, after the official announcement of the opening of the chamber that the new organ will take in charge the concerns posed by Algerian and German companies and the encouragement of the cooperation, adding that Germany was an important partner for Algeria, after the independence, to develop the industrial textile in Algeria, when the German equipment had a high reputation.

    On the other part, Djaaboub praised the development of commercial exchanges that was estimated at 2, 5 billion dollars last year, against 1, 5 billions dollars in 2004. However, the minister expressed his sorrow for most of Algerian exports being of hydrocarbon nature, pointing out that the priorities of the Algerian party is the diversification of the Algerian exports out of hydrocarbon, and the activation of small and medium companies.

    On his part, Mr Andreas Hurgenrudzr, the general director of the chamber, made it clear that the commercial exchanges are experiencing a qualitative development and that Germany is providing Algeria with many products, be them Alimentative or equipment materials.

    In the same context, the general director of the German federation for commerce and industry chambers, Mr Martin Wanslin declared that the concerns of the new German institution is the improvement of Algeria’s image and the facilitation of German investors’ work in Algeria and vice versa.

    Berlin commits itself to facilitate German investment in Algeria

  • #2
    German group Siemens commits to diversifying and enlarging activities in Algeria

    Mr Petro Donerbauer, Chairman of the German group Siemens, which is working in Algeria for 43 years, confirmed the company's commitment to the diversification and the enlargement of its activities, pointing out that the group had signed numerous contracts, and is currently materialising projects in the transport, telecommunications and energy sectors.

    Donerbauer, made it clear in the German wing, on the margins of the Algiers international fair, that the group Siemens has committed itself, in front of the president Bouteflika, to respect the deadline for the accomplishment of Algeria Metro in 2008. He added that the group is working on big projects in Algeria, amongst them the materialisation of mobile phone nets for Orascom Telecom and Al Watania Telecom, plus multi-services nets, and the phone stations that are for Itissalat El Djazair, and the specialised nets for fire workers and the Algerian airlines. Plus communication systems for the new headquarters of the ministry of energy, the new Algeria international airport.

    Donerbauer also unveiled other projects in Algeria in the energy and industry fields like the construction of the electricity units in Barwaguia and Cape Djanet, and the creation of connection systems for gas pipelines that are linking between Algeria and Spain. And amongst the most important projects that Siemens is involved in, are the creation of data systems for banks, post and Itissalat El Djazair, and the equipment of 1700 schools with computers, plus the projects of Metro Algeria, and the equipment of railways with signals systems.

    Figures advanced by the German group showed that the turnover of this company in 2004 was more than 178 millions Euros, where the group had succeeded , after the creation of its branch in Algeria in 2002, in the increase of its investments and the creation of partnership, amongst them the ones signed with the railways national company.

    >>>Source<<<

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    • #3
      German exports to Algeria rising

      Trade exchanges between Algeria and Germany are witnessing remarkable growing development, according the Algerian German Commerce and Industry Chamber. Statistics indicate that German exports to Algeria exceeded one billion € last year, an increase of 60% compared to 2003. Initial economic data show a 22% rise of exports in 2006, compared to last year’s rate.

      Germany ranks fourth, after France, Italy and China, in a list of countries exporting to Algeria. At the top of Germany’s goods list exported to Algeria are cars’ spare parts, which represent 22% of the global exports. Industrial equipments including oil and gas industry equipments represent 21%, chemical products 9%, telecom technologies over 8%. Whereas Germany’s exports of iron and steel to Algeria do not exceed 5%.

      Last year, Algeria’s exports to Germany reached 16 billion €, an increase of 100% compared to 2004.

      >>>Source<<<

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      • #4
        Algeria pays U.S., German debt early

        Algiers - Algeria has repaid ahead of schedule the entirety of its $1.2bn debt owed to the United States and planned to complete its debt payments to Germany this week, Algerian Finance Minister Mourad Medelci said on Monday.

        With the two repayments, the oil-rich North African country would have settled ahead of schedule its entire $8bn in outstanding debts to the Paris Club, in accordance with a May deal struck with the group of creditor countries.

        Algeria accelerated its early debt repayment to the organisation and to other creditors thanks to sky-rocketing oil revenues.

        A recently signed agreement covered the repayment of the last slice of Algeria's debt owed to the US - nearly $620mn - Medelci said.

        Algiers was also expected to sign another deal with Germany by the week's end to repay the final, outstanding $372mn owed to Berlin ahead of schedule.

        In September, Algeria repaid ahead of schedule $800mn of foreign debt owed to the London Club of private creditors.

        Overall, the country reimbursed more than $12bn in debt ahead of schedule between 2000 and the end of October. Russia cancelled another $4.73bn, according to official statistics.

        Since the beginning of the year alone, the country halved its outstanding foreign debt from $15.5bn to less than $7bn today.

        The countries Algeria has repaid in full include: France ($1.6bn), Italy ($1.7bn), Spain ($690mn), Japan ($445mn), Austria ($369mn), Canada ($255mn), Belgium ($225mn) and Great Britain ($202mn).

        They also include Sweden ($92mn), Switzerland ($66mn), Denmark ($54.3,m), the Netherlands ($45mn), Portugal ($20mn), Norway ($15.6mn), Finland ($11.8mn), along with the United States.

        Algeria pays U.S., German debt early

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        • #5
          I may be being obtuse but why is Algeria repaying all of its foreign debt at this time? Any thoughts from anyone?

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          • #6
            In large part it is the taking advantage of greatly increased oil revenues to enable early repayments that saves billions on interest charges and fees, enhances Algeria's international credit rating and thus creates a favorable economic climate for Algeria's attempted entry into the W.T.O.

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            • #7
              And for reference, Algeria paid over 150 billion dollars as debts and interest charges since 62 while it probably didn't get the third of this amount.
              Some econmists mainly from the IMF and the World Bank don't think this is a wise action but I doubt of their sincerity and even after paying the debts Algeria still has over 80 billion dollars in the reserves which can be used for internal development.
              Something that is not advertised in Algeria is that the Algeria gov and some Algerian companies are contracting new loans, bigger ones and with better interest rates, as the reputation of the whole country improved thanks to the repayment process....

              PS: During the tough years, Algeria used to contract new loans in order to pay old debts, and the debt repayment represented more than 1/3 (and even 1/2 as a worst case) of the whole algerian oil (only) revenue
              Avant d'ecrire il faut savoir lire,
              et avant de parler, il faut savoir ecouter
              Par El Bachir El Ibrahimi

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              • #8
                Many thanks both! Economics has never been my strongest subject unfortunately.
                However, do you think that by paying all the debt , this is delaying government investment in improving internal infrastructure?

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                • #9
                  I don't think so. Boutef's 5 years program is very important and its cost will b around 50 Billion dollars, the aim of which is mainly to improve the basic infrastrcture: transportation, education, health, social aids...etc. And I believe we still have the moneys to do more...
                  As I said earlier, thanx to the oil price increase, modern Algeria is experiencing an unprecedented period of wealth and can afford the money to pay the debts and still keep a lot for investments... And repaying debts now means no interests to pay in the future -> more money for development.
                  Algerian yearly budget is always done based on a barrel of 19 dollars so that the rest is put in the reserves or in the special oil account (which reaches more than 30 billion dollars today)... This is to say that we have money to do all that and more

                  The most important thing is to develop the industry and agriculture so that Algeria won't suffer again when oil becomes cheaper or when there's no oil. And this is not the government's responsibility alone but the private businesses too. We just need to be ready before the oil period is over
                  Avant d'ecrire il faut savoir lire,
                  et avant de parler, il faut savoir ecouter
                  Par El Bachir El Ibrahimi

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                  • #10
                    Thanks Mnarvi. I agree that no country should depend on oil revenues alone. I hope that agriculture, tourism and many other industries start to flourish in Algeria in the coming years.

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                    • #11
                      Munich hosts economic forum on Algeria

                      An economic forum on Algeria opened in Munich on Wednesday (December 6th). The event was organised by the Munich Chamber of Commerce and Industry, at the initiative of Bavaria's Minister of Economy Erwin Huber, and the General Director of the Munich Chamber of Commerce and Industry, Reinhard Dorfler. The forum is bringing together Algerian and German business communities, to present Algeria's investment opportunities and boost economic co-operation between Algeria and Bavaria.

                      Munich hosts economic forum on Algeria

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                      • #12
                        Germany invests in Algeria

                        German Economics Minister Michael Glos said Thursday (February 22nd) during a two-day visit to Algeria that German companies will invest $120m in Algeria's infrastructure over the next year. He noted Siemens' participation in the deal for the supply of electrical switching stations for a new business centre in Algiers and in a consortium for building an underground system in Algiers. Glos also spoke on the diversification of Europe's sources of energy and strengthening of the links with North Africa during Germany's EU presidency. "I can well imagine that in future more Algerian gas will come to Germany and Europe," Glos said, adding that he would welcome the building of more pipelines between Algeria and Europe.

                        Germany to invest $120m in Algeria's infrastructure

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                        • #13
                          ALGIERS, Feb 23 (KUNA) -- Algerian and German companies have signed here Friday partnership contracts in the fields of energy, tourism and services.

                          The signing ceremony was attended by Algerian Minister of Participation and Investment Promotion Hamid Temar and German Minister of Economics and Technology Michael Glos Kalos.

                          The first deal, which was inked by Algerian Dalhi Complex, an electric power enterprise, and German Siemens, aimed to set up a joint venture in the Algiers City Project, including a high pressure power plant, a trade center and a tourist port in the capital Algiers.

                          Siemens Country Office's CEO Peter Donrbor said in news remarks that the project, which would cost 300 million Algerian dinars, would be completed within nine months' time.

                          The second deal, which was signed by Algeria's Marine Industrial Services (MIS) and Germany's Sloman Neptun Company, is pertinent to a joint venture in the sea transport field.

                          Zawawi bin Jalit, manager-general of the Algerian company, said the USD-1-million-capital joint venture would be responsible for procedures for German ships crossing Algerian harbors.

                          Accompanied by several German businessmen, German Minister of Economics and Technology Michael Glos Kalos arrived here on Thursday on an official visit to Algeria.

                          Algerian and German companies sign partnership contracts

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                          • #14
                            February 26, 2007 - - Siemens of Germany will supply electrical equipment to the Algerian private real estate development company Dalhi. The equipment will be used to power Dalhi’s mega project called Alger Madina. A second contract, also involving an Algerian private firm, AMS, concerned the establishment of a joint venture with Germany’s Sloman Neptun in the area of maritime shipping.

                            These contracts and many more to come occurred through the participation of the busy Algerian-German Chamber of Commerce, and according to some senior officials of the Chamber some 1 billion euros worth of business are being negotiated.

                            The German business community has become more focused on creating opportunities in Algeria, obviously driven by the important oil reserves and the North African country’s ambitious economic program. Today, some 140 German companies have a direct presence there, and have invested some 350 million euros over the past few years.

                            Leading companies active there include Henkel, Knauf, Linde, Messer, Siemens, ZF, BASF, DHL, and Dywidag. Knauf, for its part, acquired a 50% stake in the Algerian state-owned plaster maker Fleurus, and has reportedly applied for the purchase of the remaining 50%. Similarly, the privatization authority, Conseil National des Participations de l’État (CNPE) is expected at any time to announce that it will authorize Germany’s Linde to take over the industrial gas maker ENGI.

                            From a trade perspective, commercial exchanges between the two countries rose to 2.7 billion euros in 2006, with Algeria exporting 1.6 billion euros to Germany, hence maintaining a slight trade surplus. These figures rank Algeria as Germany’s fifth commercial partner in MENA (Middle East North Africa region) after the United Arab Emirates, Saudi Arabia, Egypt and Kuwait.

                            But a closer look at the pace of German investment into Algeria and one can pinpoint bottlenecks in the way the Algerian administration operates, creating slow response rates and massive procedures. A number of German companies that have attempted to set up operations in Algeria gave up after dealing with tough bureaucratic procedures.

                            Algerian-German trade talks lead to new business deals

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                            • #15
                              ALGIERS, May 16 (KUNA) -- Germany has announced it would invest over several years some eight billion Euro in the Algerian market.

                              Andreas Hergenroether, Director of the Algerian-German Chamber of Commerce and Industry told a briefing on Wednesday here about two international industrial shows that are to be hosted soon in Germany.

                              The planned investments, though yet to be clearly specified, will cover several sectors and not just hydrocarbons, he pointed out.

                              He said that some 140 German companies are currently present in Algeria dealing in direct investments or having partnerships with Algerian firms.

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