Despite low FDI, French-Algerian cooperation is steadily growing

January 2nd, 2018


APS : Sunday, 31 December 2017

PARIS (France)– Despite low inflows of the French FDIs, the French -Algerian cooperation is steadily growing as the two countries are engaged in several structuring and win-win projects,
and explore new avenues of sustainable development.
This has been the essence of French President Emmanuel Macron’s working and friendship visit to Algeria, on December 6th.
During the first quarter of 2018, the French Head of State is planned to pay a state visit, during which several agreements will be put “in the pipeline.”
Aware of Algeria’s geopolitical position and its geostrategic role, Emmanuel Macron who has been the only French presidential candidate to recognize that colonization is a “crime against humanity,” ambitions to build with Algeria a “strong” line, which sets its foundations in the Mediterranean and extends towards Africa.
Taking into account the increasingly difficult inter-European cooperation, several French experts call for broadening the horizons towards the South, by re-founding Europe-Mediterranean-Africa co-operation.
The two countries “must benefit from each other’s experiences, know-how and human and cultural resources,” he said in interviews to Algerian newspapers.

Both countries speeding up cooperation

In 2017, Algeria and France have concluded up to 14 partnership agreements covering several fields, from public and private sectors, including the major project of Peugeot car assembly plant in Algeria, after that of Renault.
Moreover, three other major agreements are to be signed soon: the mutual legal assistance agreement, the health care protocol (securing the care for Algerian patients in French hospitals) and the “young workers” agreement.
In the last quarter of 2017, cooperation between the two countries has rapidly grown, following the holding of the 4th French-Algerian Joint Economic Committee (COMEFA) in Algiers in November, crowned by the signing of three agreements.
The French president’s working and friendship visit to Algeria and the holding in Paris, 24 hours later, of the 4th session of the Intergovernmental High Level Committee (CIHN), co-chaired by Prime Ministers Ahmed Ouyahia and Edouard Philippe have also contributed to boosting this cooperation.
Up to eleven agreements have been inked in Paris and the new Partnership Framework Document (DCP) for the period 2018-2022 has been finalized.

Low French FDIs

Boosted by a shared desire, the economic cooperation between the two countries is likely to “significantly” increase in the coming months, according to observers who reported the low French investments in Algeria, despite the new “incentives” provided by the new Algerian investment code.
According to figures of the Banque de France (The Bank of France), the French investment flows to Algeria amounted to €138.6 million in 2016 down from €141 million in 2015.
The French FDI flows to Algeria in 2016 mainly concern sectors related to the financial services activities, excluding insurance, industries, specialized scientific and technical activities, food industry, information and communication, the manufacture of aircraft and spacecraft.