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Algeria reverses Bouteflika’s economic measures

Newly Elected President of Algeria Abdelmadjid Tebboune holds a press conference in Algiers, Algeria on 13 December 2019. [Farouk Batiche - Anadolu Agency]
President of Algeria Abdelmadjid Tebboune holds a press conference in Algiers, Algeria on 13 December 2019 [Farouk Batiche/Anadolu Agency]

Algerian President Abdelmadjid Tebboune announced on Sunday a package of economic stimulus decisions that eliminated the remaining measures that his predecessor Abdelaziz Bouteflika had taken during his rule.

During a digital Cabinet meeting chaired by Tebboune, it was decided that “the 51/49 rule for partnership with foreigners” would be reviewed, “except for the strategic sectors”.

Algeria adopts in all projects and economic sectors a rule for foreign partnership on the basis of granting 51 per cent ownership to the Algerian party and 49 per cent to the foreign party.

Algeria adopted this rule in the General Budget Law of 2009, during the third term of Bouteflika, who resigned on 2 April 2019, under pressure from popular protests against his rule.

READ: Algeria raises minimum wage for first time in 8 years

Tebboune also decided to cancel tax and customs exemptions for the auto fabrication and assembly sector that were approved by the governments of Bouteflika years ago.

In 2013, Algeria stopped importing new cars, providing tax and customs exemptions to auto fabrication and assembly plants to localise the manufacturing process. This was criticised for providing factory owners tax breaks while failing to establish a local auto industry.

As a result of Sunday’s decision, new cars can now be imported.

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