ECONOMY

2021, a year marked by surge in non-hydrocarbon exports

ALGIERS-The performances of the Algerian economy in 2021 include an increase in the amount of non-hydrocarbon exports, which neared $US4.5 billion at the end of November, an unprecedented level since independence.

This amount reflects the state's willingness to steer out the economy of dependence on hydrocarbons by diversifying economic and business activities to integrate a new economic model based on added value.

The message of the President of the Republic, Abdelmadjid Tebboune was clear on this issue. The head of state emphasized the need to reduce the dependence of the national economy on hydrocarbon revenues to 80% in the short term against 98% in recent years.

The change in the name of Kamel Rezig's department, which has become the Ministry of Trade and Export Promotion since last July, was not a coincidence.

This decision reflects the great interest the Government attaches to exports and confirms the determination of the country's highest authorities to make non-hydrocarbon exports a lever for economic growth.

The new policy is beginning to bear fruit since non-hydrocarbon exports have represented 12.3% of total export transactions over the first eight months of the current year, according to data provided by the Ministry.

This result was achieved through a batch of incentives that includes the creation of green corridors dedicated to export, tax benefits, and administrative facilities while strengthening the role of Algerian diplomacy in promoting Algerian products abroad.

The incentives that have helped boost non-hydrocarbon exports include the new regulation of the Bank of Algeria that allows exporters to get the full amount of foreign exchange earnings generated by their activities.

In addition, the regulation of the central bank exempts from the formalities of direct debit exports of digital services and the provision of services of start-ups and non-trading professionals.

Moreover, exporters have the opportunity to showcase the quality of their products and their expertise through increased participation in regional and continental fairs.

Several export-related events took place this year, such as the Inter-African Import-Export Exhibition "IMPEX2021", the Fair of Algerian products for the Libyan market, and the International Exhibition of Export and Logistics 2021.

Algeria also took part in 29th the International Fair of Dakar (Senegal), and the 2nd Intra-African Trade Fair (IATF 2021) held in Durban (South Africa) where the Algerian pavilion clinched the Best Official Pavilion Award.

In order to boost non-hydrocarbon exports, the state relies on the various and free trade association agreements ratified by Algeria with the European Union (EU), African countries signatories to the agreement of the African Continental Free Trade Area (AfCFTA) and Arab countries signatories of the agreement of the Greater Arab Free Trade Area (GAFTA).

Besides, President Tebboune called to revise the provisions of the Algeria-EU association agreement under "a sovereign vision and a win-win approach."