National Agency of Investment Development 

Created in the framework of first generation reforms in Algeria during the nineties, the Agency in charge of investment experienced evolutions aiming at adapting to change of economic and social situation of the country. Initially APSI, Agency of Promotion, Support and Follow-up of Investment from 1993 to 2001, then ANDI, National Agency of Investment Development, this governmental institution aims at promoting, accompanying and making the investment easier

 Transition from APSI to ANDI resulted in changes of institutional and statutory frameworks :

  • Creation of National Council of Investment, body under the authority of the Prime Minister, in charge of strategies and priorities for development;
  • Creation of regional structures of the Agency which contribute in consultation with regional development local players. This contribution consists namely in putting in place human and material means in order to make easier and simplify the investment action;
  • Establishment of interdepartmental committee of appeal in charge of receiving and giving ruling on complaints of investors;
  • Clarification of roles of different intervenors in the investment process;
  • Revision of incentive system to investment;
  • Withdrawal of self-financing level required to eligibility for advantages;
  • Simplification of procedures for obtaining advantages;
  • Simplification of advantage application files.

Boosted by confirmed experience and expertise in investment promotion, ANDI obtained a place within international networks of investment promotion agencies and keeps cooperating namely with its European, Arab and Asiatic counterparts :

  • WAIPA, world Association of Investment Promotion Agencies (IPA) which contains more than 150 IPA throughout the world;
  • ANIMA, euro-Mediterranean networks of IPA in 12 countries of south bank of the Mediterranean in partnership with French, Italian and Spanish agencies;
  • ANIMA Investment Network, Association created in succession to ANIMA networks and extended to other European countries;
  • AFRICANET association of investment promotion African agencies since 2010
  • Conclusions of many bilateral agreements and conventions with IPA aiming at exchanging experience and good practices as regard investment promotion.

In order to provide services in accordance with international standards, ANDI works with various international institutions and bodies such as :

  • CNUCED for advice and expertise, on the occasion of investment policy review in Algeria;
  • ONUDI for training and improving executives of the Agency as regard investment project assessments;
  • World Bank (Banque Mondiale) for auditing firm creation process and improvement measure proposals within the framework of its DOING BUSINESS program.

Reasons to invest in Algeria

Economic stability
An economic stability (data for  2016)

• GDP: $ 160 billion

• GDP per capita: $ 4,000

• GDP real growth rate: 4% (Source ONS)

• GDP real growth rate excluding hydrocarbons: 5.5 (Source ONS).

• External Debt: $ 3 billion

• Foreign exchange reserves: $ 114 billion

05 priority sectors to be developed
  • Industry :- metalworking, hydraulic binders, electrical and household appliances, industrial chemistry, mechanics and automotive, pharmaceutical production, aerospace, construction and ship repair, advanced technology, food processing, textiles and clothing, leather and timber products, wood and furniture industry, and Mines
  • Subcontracting Development:
  • Tourism: Raising the value of Algeria  Destination;
    • Implementation of a Tourism Quality Plan (PQT)
    • Development and qualification of the offer by investing in tourist centers and villages of excellence;
    • Public-Private Partnership to strengthen the Tourism Channel;
  • Agriculture:

    •    focuses mainly on the permanent support of food security and the rural areas development.
  • Renewable Energies and Energy Efficiency: For the installation of a capacity of 22000MW by 2030, of which 4500 MW by 2019. This program concerns solar, thermal, biomass and wind.
  • Information and Communication Technologies: Which concerns the development of the digital economy, technology parks, the introduction of e-money and e-services, data and data base security, etc.
Functional and modern infrastructure in conformity with international standards

 Roads

112,039 km of roads and highways (40th network World, 3rd in Africa) of which 29,573 km of national roads.

Airports

36 airports, of which 16 international.

Ports

45 maritime infrastructures, of which 11 commercial ports, two oil ports, 31 fishing ports, one (01) marina and 2,200 maritime traffic lights

  • More than 53 km of jetties;
  • More than 59 km of quays plus landing stage;
  • More than 1,500 ha of water surface;
  • More than 790 Ha of land;
  •  31 oil and gas landing stage.

 Railways network

 4498 km of railway network, of which 3854 km of operational lines and 2,380 others under way of construction;

  •  Three (03) sets:
  • The northern bypass linking Annaba, Constantine, Algiers, Oran with its extensions to the eastern (Tunisia) and west (Morocco) borders.
  •  The mining line with its branches serving the mineral deposits: the Iron in Ouenza and Boukhadra and the Phosphate in Djebel Onk.
  •  Penetrating motorways in the direction of the high lands and the south and a high lands bypass road linking the cities of Tébessa / Ain-Mlila / Ain-Touta / M’sila. To which are added the particular junctions.
  • Length of operational lines: 3750Km
  •  Length of dual track lines :553Km
  • Length of single track lines :3217Km
  •  Length of electrified lines :323Km
  • Number of operational stations: 175
  • Number of operational stopping places :215
  • One (01) metro in Algiers with a length of 9.5 km with three extensions of a total length of 9.4 km underway of construction.
  • 3 trams (Algiers, Oran and Constantine) and 4 trams underway of construction (Ouargla, Sidi Bel Abbes, Sétif).
  •  Passenger cars: 416
  •  Wagons : 10 873
  •  Electric rail cars : 64
  •  Diesel rail cars : 17
  •  Diesel  Locomotives: 261
  •  Electric  Locomotives: 14

 A qualified, young and competitive labour force

 – 5.5% of GDP to education

6.24% of the state operating budget for higher education

86% literacy rate

63.6% of the Algerian population training age annually

96% of school enrollment

1.5 million students, including 35,000 registered in doctoral training and 90000 in technical areas.

2 500 000 graduates since 1962, from 97 universities, 10 university centers, 20 national schools, 7 normal schools, 12 preparatory schools

– Almost 643,700 enrolled in vocational education which 200,000 (average) graduates from 1213 establishments (institutes and centers)

And competitive production factors costs

 Energy
  • Natural gas: 0.21 to 0.40 Euros / therm
  • Electricity: 1 to 4 euro cents / kWh on average
  • Gasoline super 0.30 euros / L Gas Oil 0.17 euros/L

Salary

180-900 euros (the minimum wage is set at 180 euros)

Incentives for investment
– Important tax incentives, up to 10 years of exemption, depending on the location and size of the project.

 And other additional benefits:

  • Partial or total reimbursement of expenses related to infrastructure works within the south and highland areas and areas the development of which requires a contribution from the State;
  • Reduction in employers’ contribution to social security for the recruitment of young job seekers
  • The concession of land by mutual agreement, over periods of 33 years renewable and giving rise to the same property rights arising from sales
  • Discounts on the price of the rental fee on the land and property acquired within the framework of the realization of the investment
  • Tax exemptions throughout the life of the project for exporting projects.
  • Temporary Exemption for 5 years, of companies benefits tax (IBS), Global Income tax(IRG) and Tax on the turnover and 3%bonus  of the interest rate on bank loans granted to investments in certain activities within the steel and metal industrial sectors, the hydraulic binders and Electrical Appliances, Industrial chemistry, mechanics and automotive Pharmaceuticals, aerospace, shipbuilding and repair, advanced technology, food processing, textiles and clothing, leather and derivatives, wood and furniture industry.
  • Exemption from VAT, customs duties, taxes having equivalent effect or any other charge for the equipment needed for investment by industrial companies in the field of research and development.
  • Reduction of 50%, companies benefits tax (IBS) or Global Income tax(IRG), in common law for individuals and legal entities, activating and fiscally domiciled in the wilayas of Illizi, Tindouf, Tamanrasset and Adrar, and this for a period of 05 years from the January 1, 2015.
  • Support by the Public Treasury Administration, of the bank interest for investments made by industrial companies for the acquisition of technology and mastery to enhance the industrial integration rate of their products and competitiveness.
  • Extension until 31 December 2019, of the application of reduced rate of customs duty on acquisitions of equipment and furnishings not produced locally by hotel standards and within the scope of modernization and upgrading under the « Quality Plan Tourism Algeria«  -The list of equipment and furnishings concerned is determined by the inter-ministerial order of March 2, 2014.
  • Reduction of charges of contribution to social security (recruitment of young jobseekers)
    •  North: 56%to 80%.
    •  Highlands and South: 72% to 90%.
Supports in matter of financing through public banks
– Interest rate to 5,5 %

– A discount of  2%, it may reach 4.5 % (Tourism project in the South)

– A network of 29 banks and financial institutions, of which:

* 14 private and 6 public and 9 financial institutions

* 11.400 billion dinars of credit to the economy

– The existence of Leasing Companies

– Availability of investment funds

• FNI contribution  to 34% in major projects

05 Investment Funds covering the whole territory:  participation up to 49% in the capital of SMEs

– Possibilities to recourse to financial institutions guarantees: Guarantee Fund to Credits for Investment CGCI, the Credits Guarantee Fund for SMEs

An intensified protection and international arbitration agreements
  • Membership to international investors protection conventions, relating to international guarantees and arbitration;
  • Signing of 48 bilateral agreements and agreements on the investments promotion and reciprocal protection;
  •  Signing of 65 bilateral agreements on non-double taxation (source DGI).

 

 Factors costs (Updated April 2017)

Average salary

 1- AVERAGE SALARY BY SECTOR OF ACTIVITY:  

 A-  PUBLIC SECTOR:                                                 unit : dinar

Sections

Executives

Master Agents

Execution agents

Average

Extractive Industries

123 026

96 136

71 226

101 293

Manufacturing Industries

67 561

52 825

35 084

47 220

Production, distribution of electricity, gas and water

63 912

42 366

31 467

44 566

Construction

64 493

42 768

28 732

35 137

Trade & Repair

66 594

50 026

36 698

47 138

Hotels & Restaurants

55 872

34 405

29 899

34 136

Transport & Communications

78 192

58 950

47 714

56 284

financial Activities

67 470

48 341

37 919

56 311

Real estate, renting and business services

56 667

44 385

36 504

41 381

Social and personal Collective services

68 172

42 327

33 566

38 417

Global

83 372

60 389

37 285

54 743

                                                                                           Source: ONS (National Office of Statistics)

 

B- PRIVATE SECTOR                                        unit : dinar

 

Sections

Executives

Master Agents

Execution agents

Average

Extractive Industries

42 592

28 786

22 695

25 736

Manufacturing industries

67 849

37 270

25 713

32 327

Construction

60 472

33 518

24 346

28 974

Trade & Repair

86 318

39 804

26 825

42 127

Hotels & Restaurants

62 290

36 850

27 886

32 002

Transport & Communications

63 253

36 508

28 489

35 698

financial Activities

115 661

62 628

42 325

73 246

Real estate, renting and business services

83 607

37 539

24 044

27 456

Health

91 008

41 823

23 550

43 845

Ensemble

69 631

35 656

25 249

32 078

                                                                                      Source: ONS  (National Office of Statistics)

 

N.B : The National guaranteed minimum wage in Algeria is 18.000 DA

 2- Social security contributions:

 

Categories

Rate

Observations

 

Employer’s contribution

Employees contribution

25 %

9 %

 

 

Applicable to gross salaries

Social security benefits, retirement and unemployment

 For more further information :

http://www.andi.dz/index.php/en/