Algeria engages in privatization as part of reforms

Algerian President Abdelmadjid Tebboune has ordered the government to sell stakes in state-owned companies and banks as part of long-awaited economic reforms.

This is the first time that Tebboune has presented concrete measures that the government should take, following its promise to reform the economy.

Reforms in Algeria aim to reduce dependence on oil and gas, which accounts for 60 percent of the state budget and 94 percent of export earnings.

The project to open up public enterprises to private capital intends to “find effective solutions” and avoid “administrative management”, added the presidency after a council of ministers chaired by Tebboune.

He did not give details on the number or size of the companies and banks involved.

Algeria has six state-owned banks, accounting for 95 percent of banking assets.

In addition, Tebboune underlined the recovery of the national economy which recorded a growth of 3.8%.

He assured citizens of the economic situation, saying all indicators, including World Bank and IMF reports, speak of progress.

Tebboune added that public banks have granted loans worth 1,665 billion Tunisian dinars, calling it a good investment.

Foreign exchange reserves reached $ 44 billion, he added.

In addition, he stressed that Algeria is diversifying its economy away from oil.

It exported $ 2 billion worth of non-petroleum products in the past six months. The total is expected to reach $ 4 billion to $ 5 billion by the end of the year.

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