Algeria has just launched a call for worth of industrial projects in 18 sectors, with Malta Enterprise hoping these will attract Maltese interest.
The Maltese have for decades had their eye on the opportunities available in Libya – and Tunisia to a much lesser extent – but have tended to overlook Algeria, in spite of its many opportunities for exports both in consumer goods and industry.
The country of 37 million is planning to invest $300 billion in a bid to reduce its dependence on oil and gas. This includes tourism: Algeria is planning to build 750 hotels in 48 locations over the coming years. The country as a stunning coastline, mountains, waterfalls, desert landscapes and a rich historical and cultural heritage showcasing its Phoenician, Roman, Berber, Arab and Ottoman legacy.
Malta Enterprise organised a trade mission last December – and while only 22 Maltese attended, there were over 100 Algerian businessmen who turned up to hear what Malta has to offer.
An institutional mission from Algeria is being planned for later this year, to be followed by a trade mission.
The initiative could not come a moment too soon. Trade had reached €110 million in 2009 but by 2011 had fallen to a paltry €25 million.
There are a few companies that were quite active in Algeria, including Mifsud Brothers Ltd (Malta Cruise Services) and Bristow Potteries – but while the former has still got ongoing concerns through Algeria Cruise Services (see photo above) and has handled over 40 ships since 2006, the latter’s exports were disrupted during the Arab Spring and have yet to resume the previous momentum. Although the Algerian Government survived the unrest, there were serious incidents which prompted promises of wide-ranging reforms.
There was considerable interest in Malta from the Algerian side in the past: In 2004, an Algerian company, Sonatrach, offered a natural gas package to Enemalta – which was dismissed outright by then minister Austin Gatt. Algeria has the 10th-largest reserves of natural gas in the world and is the sixth-largest gas exporter. The Maltese government is once again considering gas, and with the Chinese offering to look into options for Enemalta, observers wonder whether the close ties between Algeria and China might re-open this proposal.
Visas are – as with many countries in North Africa – a problem. There is no Algerian embassy in Malta but visas can be obtained from the Algerian Embassy in Rome via the Foreign Office in Malta – although this does take time. For Algerians wishing to get a Maltese visa, it could take months, diplomatic sources said. A Maltese Ambassador – Ivan Vella – had been appointed over two years ago but the official procedure was never concluded and he remains Ambassador Designate.
One positive step has been the reintroduction by Air Malta of two flights a week to Algiers as from June, which are expected to carry 6,000 passengers this summer.
The country is not easy to do business in, with considerable red tape and bureaucracy and headaches with regards to payments and so on, given the primitive banking system. For the Maltese, the extensive use of French can also be a drawback.
However, the overall comment from those involved with Algeria seems to be positive: This country is poised for development and that means opportunities...
Family ties
The links between the two countries are rooted in history. Thousands of Maltese families had settled there over the centuries: By 1847 the number of Maltese living in Algeria was calculated at 4,610, and in 1903, the number had grown to 15,000, mostly farmers, fishermen and traders.
In 1926 the number of ethnic Maltese living in Algeria and Tunisia was tentatively calculated at about 30,000, according to The Great Exodus by Fr Lawrence Attard. In the 1960s, property was expropriated from many Maltese, with the issue of compensation still unresolved.