Algiers – A Saudi Arabian pharmaceutical company is bolstering its Algerian joint venture with a significant financial guarantee. Jamjoom Pharma has announced its support for Jamjoom Algeria Pharmaceuticals, in which it holds a 49% stake, through a Standby Letter of Credit (SBLC) valued at 2.25 billion Algerian dinars, approximately 16.8 million US dollars.
The company disclosed in a statement that it provided a corporate guarantee to a bank on January 15th to facilitate the issuance of the SBLC. This guarantee covers Jamjoom Pharma’s proportional share of the project, amounting to 1.102 billion Algerian dinars, or roughly 8.4 million US dollars.
This financial instrument is intended to address the medium-term working capital requirements of Jamjoom Algeria, thereby enhancing operational efficiency and ensuring the continuity of ongoing projects within the Algerian market. The move underscores the growing economic ties between Saudi Arabia and Algeria and highlights the confidence of Saudi investors in the Algerian pharmaceutical sector.
Jamjoom Pharma’s CEO, Tariq Yousef Hosni, has previously stated the company’s strategic objective to strengthen its presence in key markets including the Gulf region, Egypt, Algeria, and North Africa. He also emphasized plans for expansion into Francophone and Anglophone African markets, guided by a well-defined market entry strategy. “We have significant ambitions to expand in multiple markets and regions, and we are implementing a clear plan for entering new markets with carefully considered steps,” Hosni noted.
Regarding industrial expansion, Hosni indicated that the company currently possesses sufficient manufacturing capacity to meet its operational needs. He affirmed that there is no immediate requirement to establish new factories unless a genuine need arises. “We have adequate factories at present, and we are striving to optimize their performance. However, we do not foresee the necessity of investing in new manufacturing facilities unless it becomes absolutely necessary,” he concluded. This strategic approach reflects a focus on efficient resource allocation and sustainable growth within the Algerian pharmaceutical landscape.
