Brussels, 17/06/2014 (Agence Europe) - A three-day conference began in Algiers on Monday 16 June to present a study on Algerian SMEs, carried out by the EU, the OECD, the European Foundation for Training and the European Investment Bank.
At the same time, training is being carried out under a regional project over the 2014-2017 period. This is being financed by the EU (to the tune of €3 million) and is being implemented by GIZ (Germany). It seeks to “improve policies in favour of SMEs in the southern Mediterranean region”. Civil servants, representatives of public bodies and professional organisations have been invited to debate the results from this “evaluation of Algerian policies and measures supporting SMEs”.
According to an EU delegation press release in Algiers, the evaluation “recognises the determination to achieve economic diversification expressed over the past five years through proactive private sector development policies”. “Significant resources for promoting entrepreneurship and support for SMEs” have been granted to Algerian SMEs. The press release also indicates that “many essential elements for creating a comprehensive policy supporting SMEs are now in place and significant progress has been made since a similar evaluation was carried out in 2008. Nonetheless, there are still significant challenges to be met, particularly with regard to inter-institutional coordination and the definition of strategic guidelines”. The recommendation calls for both improved and “reduced” information provided by the Algerian state, because current information does not fully meet “the needs of private companies”. The question of financing for companies is also assessed. This is often done to excess through subsidies and interest support. The recommendation suggest that efforts must be made to “avoid financing projects that have no economic prospects, so as not to hinder the development of a financial and banking sector that is more market-based”. (FB)