Algeria: French want a fresh start

Jean-Pierre Raffarin travelled to Algiers on 24th November as part of attempts by the French government to re-launch relations with their former colony. The former prime minister, who is in charge of managing relations with Algeria, has been asked by President Nicolas Sarkozy to draw a line under the troubled relationship of recent years, which has been marked by disputes over a number of high-profile issues.

These include the aviation security measures targeting Algerian travellers to France, and handling the legacy of France's colonial role in the country, as well as major differences of opinion over the handling of counter-terrorism strategy in the Sahel. France has also refused to bow to Algerian demands for a full apology for its actions during the colonial period. As a result, President Abdelaziz Bouteflika has repeatedly put off making an official visit to France, and some French officials have been put on a 'black list' by the Algerian government, effectively barring them from entry into the country. Among the least popular was former foreign minister Bernard Kouchner, who lost his job in Sarkozy's recent reshuffle.

In particular, Raffarin hopes to make progress on the economic dossier, boosting French investments in Algeria. Although France has historically been the economic partner of choice for the Algerians, investors such as Alstom have run into difficulties recently. Renault, which has been hoping to set up a car plant in the country, has been bogged down in negotiations with the government.

For more news and expert analysis about Algeria please see Algeria Focus and Algeria Politics & Security.

© 2010 Menas Associates

Algeria: Economic concerns push Kouchner aside

The French government appears to have given in to Algerian intransigence in an effort to improve relations, particularly in the economic sphere, by taking responsibility for the bilateral relationship away from foreign minister Bernard Kouchner. Kouchner is disliked by the Algerian authorities, who have refused to authorise a visit by him to Algiers twice in the course of a year. French President Nicolas Sarkozy has appointed former prime minister Jean-Pierre Raffarin to manage Algerian affairs, alongside the secretary general of the Presidency, Claude Guéant, who has met Algerian prime minister Ahmed Ouyahia frequently over the past year.

Raffarin is now in charge of an economic cooperation mission between the two countries aimed at spurring investment. “If our country is one of the top economic partners of Algeria, nothing is perfect and we must stay alert in order to maintain and increase our position and market as much as possible,” said Sarkozy in a mission statement to the former PM. He also mentioned the “difficulties” experienced by French companies operating in Algeria. By appointing a high-level official in charge of economic relations between the two countries, the French are demonstrating their will to provide tangible support to their presence in Algeria, he said.

France's foreign trade secretary, Anne Marie Idrac, was in Algiers in mid September to discuss French investment in the country. Accompanied by representatives of French businesses, she held discussions with investment promotion minister Mohamed Benmeradi, which centred on Algeria's new regulations contained in the supplementary finance law for 2010. Idrac said that French companies had invested $2.7 billion in Algeria last year, and that French companies were demanding “some advantages” to encourage them to invest further in the country. She also confirmed that French car manufacturer Renault was ready to invest in the country. One of the largest investment deals was drawn up by French energy group Total, which in 2007 announced that it would put $5 billion into the construction of a petrochemicals plant in Arzew.

For more news and expert analysis about Algeria please see Algeria Focus and Algeria Politics & Security.

© 2010 Menas Associates

Sarkozy appoints economic envoy in Franco-Algerian economic co-operation

Last week (Algeria Politics & Security - 03.09.10), we remarked on the 28th August article in Algeria's L'Expression, which many interpreted as a clear threat to France in the context of the Hassani case, namely that France could not afford to be excluded from the US$286 billion being spent on infrastructural projects over the next four years. Unsurprisingly, three days later, France dropped the Hassani case.

Eight days later, on 8th September, the Elysée announced President Nicolas Sarkozy's appointment of former prime minister Jean-Pierre Raffarin to head an economic mission of economic co-operation between France and Algeria.

Sarkozy said: “The mission will seek to identify and remove obstacles between France and Algeria for their respective economic investments.” Relocations between France and Algeria have been at a low point recently and the question of their economic relations was discussed at meetings between Elysée Secretary General Claude Gueant and Ouyahia in Algiers on both 21st February and 20th June.

Raffarin's appointment, as Sarkozy made clear, is designed to show France's new found willingness to invest and do business in Algeria. It is unlikely that his appointment, following so closely on Algeria's not very veiled threat, is entirely coincidental.

For more news and expert analysis about Algeria please see Algeria Focus and Algeria Politics & Security.

© 2010 Menas Associates