Algeria: Government in panic over election

The government is in a panic over the up-coming 10 May election, and fears a massive abstention. The latest instructions being given to citizens by the government are along the lines of: “We know that many people are undecided on whom to vote for. That doesn't matter. Just go to the voting booths and get your fingers marked with the ink (dye). It lasts five days and we will be able to see who didn't vote. But, you don't have to vote. Just go to the polls to vote and get your fingers marked, but you don't then have to vote.”

In short, the government is not interested in how the votes are cast; it just wants people to register to vote to prove that there was a reasonable turnout – somewhere around 50-60%, or hopefully higher. The message also contains the veiled threat that those without 'ink on their fingers' will in some way be noted and perhaps punished.

The government's anxiety over an abstention, which would destroy its reform pretensions, were manifested by President Abdelaziz Bouteflika on 23 February when he addressed a ceremony in Oran to mark the double anniversary of the nationalisation of hydrocarbons and the creation of the General Union of Algerian Workers (UGTA). The president said that Algeria is witnessing a critical stage on both domestic and foreign levels. The country, he said, was “going through a sensitive period both internally and externally.” He went on to say that the world was also going through a difficult period. “It requires wisdom,” he said, “in dealing with the situation.” He warned Algerians against “rumours and false information.”

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

© 2012 Menas Associates

Algeria: Business changes on the way

Amendments to the 2009 Finance Act, designed to make investment for foreigners easier, are now anticipated. Meanwhile, however, and we believe that it was as a result of this pressure from France and local Algerian businesses, Prime Minister Ouyahia presided over three-party talks on 28th May: the government, business associations and employees in the form of the government's compliant General Union of Algerian Workers (UGTA).

The participants – i.e. the government – have agreed to introduce a whole range of changes designed to ease the stifling hand of government and administrative incompetence and its mountain of red tape.

The most important change will be the abolition of the Credoc system which requires all importers to pay the amount of their order to an official bank account, from where it was transferred to the seller upon receipt of the goods in Algeria. At best this usually involves a waiting time of some three months, usually many more, thus making it almost impossible for many local businesses to import. According to a statement issued after the meeting, this measure "is intended to help manufacturing companies obtain supplies more easily".

If manufacturers need to import goods urgently, they "will be able to resort to free payment of up to 4 million dinars (40,000 Euros) rather than 2 million dinars (20,000 Euros), as was previously the case." A range of changes are also to be made relating to debt arrangements, especially restructuring arrangements, between banks and SMEs designed to make life much easier for the latter.

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

© 2011 Menas Associates