Algerian President Abdelmadjid Tebboune has announced his government’s intention to reduce the share of the hydrocarbon sector in the national economy to 20% by the end of 2021. New investments will accelerate the creation of SMEs and innovative start-ups.
Algeria will implement a program to reduce the share of hydrocarbons in the national economy. This was announced on Sunday, July 19, 2020 by President Abdelmadjid Tebboune (photo), during an interview with several local media.
“ The wealth of hydrocarbons is a blessing, but the absence of justice and the persistence of the spirit of dependence have turned this blessing into a curse […] It is time to convert this wealth into a tool for development ”, declared the chief State during its interview.
The new program aims to increase the share of hydrocarbons to 20% of the national economy by the end of 2021. To do this, the authorities want to accelerate investment in entrepreneurship through aid to the creation of small and medium-sized enterprises, innovative start-ups and micro-enterprises. The agricultural sector should also receive special attention from the government.
The announcement comes as the dependence of the Algerian economy on oil exports has exposed the country to fluctuations in commodity prices in recent years. According to statistics, the hydrocarbon sector accounts for nearly 96% of the State’s export earnings.
“ The economy of knowledge and intelligence is the basis, especially as Algeria is until now, virgin and conceals great wealth not yet exploited. Unfortunately, the rentier mentality has plagued the national economy for decades to the point where we have managed to import screws; which is unacceptable ”, declared President Tebboune. And to add: “ the economy cannot remain dependent on hydrocarbons […] . It is imperative to free it, to seek and explore alternative resources where the human resource will be the basis of the real take-off of the national economy ”.
Source: Agence Ecofin