Farid Kourtel Leads Industry Ministry, Targets 15% Industrial GDP
Farid Kourtel has been appointed as Algeria's new Minister of Industry, signaling a fresh phase for the nation's industrial sector. His appointment comes with a clear mandate to enhance the industry's role in the national economy, aligning with President Abdelmadjid Tebboune's vision to elevate industrial contribution to 15% of GDP by 2027. This ambitious target is part of a broader national objective aiming for a $400 billion GDP by the same year, emphasizing the development of local production, industrial integration, and non-hydrocarbon value creation.
A primary focus for Minister Kourtel will be the automotive industry, where efforts are directed towards fostering local manufacturing of components. This initiative seeks to build upon previous experiences by establishing a production model that incorporates a higher proportion of Algerian-made parts, aiming to reduce reliance on imports. The Hyundai project is noted as a key development, with Korean officials indicating its advanced stages towards realization, suggesting a significant step forward in domestic automotive production. Additionally, the ministry plans to assess the re-utilization of existing industrial sites from past projects, including those associated with Kia in Batna, Volkswagen in Relizane, and Hyundai in Tiaret, to leverage established infrastructure.
Beyond the automotive sector, the new minister's agenda includes a comprehensive strategy to reactivate idle factories and enhance the governance of public industrial groups through performance contracts, ensuring measurable results. A critical component of this industrial revitalization involves developing subcontracting networks, particularly in mechanics and automotive, to integrate Algerian small and medium-sized enterprises (SMEs) into larger supply chains. This approach aims to boost local content and reduce component imports where national production can provide alternatives. Furthermore, the ministry intends to launch a national industrial database to map active enterprises, their capacities, and needs, facilitating import substitution and efficient resource allocation, while also addressing common industrial obstacles such as land access and administrative procedures.
