The Algerian government had set a clear roadmap for a rapid transition to a knowledge-based economy, said Prime Minister Abdelaziz Djerad.
During the Oran Disrupt 2021 conference on startups, he stressed the need to intensify efforts and involve all actors, based in Algeria or abroad, to achieve this objective.
The national economy currently needs companies that offer real added value and rely on research and development to provide innovative services and products, he explained.
The government has decided to support innovators wherever they are, he stressed, citing the establishment of a regulatory framework for startups and an investment fund that ensures smooth financing for innovative projects, as well as significant tax incentives in line with the Finance Law for 2021.
Djerad revealed the launch of the first project for startups, which will have branches across the country.
Meanwhile, the country’s foreign exchange reserves reached $42 billion, down from $60 billion in Q1 2020.
Earlier this month, President Abdelmadjid Tebboune pointed out that by calculating the oil revenues for the past year, which amounted to $24 billion dollars, the country’s exchange reserves fell from $60 billion to $42 billion, and it is changing on a weekly basis.
The drop in global oil prices has severely affected Algeria, a member of the Organization of the Petroleum Exporting Countries (OPEC), where oil and gas exports account for 60 percent of the state budget and 94 percent of total export revenues.
In April 2019, reserves reached $72.6 billion, down from $79.88 billion in December 2018 and $97.33 billion in late 2017.
Algeria uses its foreign exchange reserves to purchase import goods and services, amounting $45 billion annually.
The government has been trying to cut spending on imports to alleviate the financial pressure caused by the decline in oil and gas revenues.
Tebboune stressed then that “the new economic trend is to allow the import of only what the national economy needs”.
