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GRID PARITY PV ITALY – WE ARE LOOKING FOR LAND PLOTS TO BUILD GRID PARITY PHOTOVOLTAIC INSTALLATIONS : IBS will provide for all the bureaucratic procedure, from the submission of the documents to the issuance of the Autorizzazione Unica ( authorization ). There are already agreements with the investors ready to buy the Authorizations once they have been completed . The size of the installations starts from 5 MW and can go till 50 MW or more . The investors are also interested in buying ready to build Authorizations .


ITALY : We look for photovoltaic systems already connected to the grid, both ground installations and tracking installations or bus shelters for buyers ready to buy. Requirements: power exceeding 900 Kw and no adiacency problems which may cause the suspension of incentives after GSE visit. If you are interested here the data to be supplied in a first phase: precise Name SPV of the company at the head of which stands the GSE contract; precise power of the installation; precise geographical location of the installation. Contact us
ITALY : we look for concessions in Italy both eolic and photovoltaic in order to build installations of 10 – 20 MW or more power. Contact us
POLAND : for other buyers we look for concessions within the photovoltaic field in Poland starting form 1 MW. Contact us
INSTALLATIONS AND ABROAD PROJECTS : for investors and buyers we look for installations with incentives linked to the grid in established abroad countries. Moreover interesting are the projects for building photovoltaic and eolic parks which have authorizations already to build and tariff with state body. Contact us

We report infrastructure / construction works to be carried out in non-EU countries. Contact us

We supply turnkey food farming chains, milk-meat, tomato, chickens, greenhouses, etc.

Trade structures at income in the market. Contact us
We look for heaven earth in Milan with active rent for investor. Contact us
We seek for investors for interesting real estate development projects with a potential manager already available. Contact us.


- Country Profile and articles about Macro-economy, Geopolitics, Cross Culture

- Desks of IBS foreign Network, Services and Opportunities

- Consultancy offer for Service companies, Institutions, Trade Associations

- Bruxelles ICE Agency Newsletter and Opportunities

- Missions and Fairs abroad, and Buyers and Traders Incoming in Italy

- Discover the Promotions for the Membership to the Pandora B2B Platform to directly contact Foreign Clients, Distributors, Suppliers

- Financed training, Export & Internationalization, Foreign markets Check-up, through Interbranch Equal Funding

- Tax Credit and Training by Decree 145 on the University funding


- Table of Contents and Requirements to start an Import – Export business
- Finding a trading Partner, advantages of a Broker, Business agent, Distributors
- Trading operations abroad and participation to Fairs
- Main Documents to be used in Foreign Trade
- Customs tariff and Duties
- Methods of delivery of goods, delivery Times, Quality, Shipments, Incoterms
- Methods of Payment and Debt collection
- Essentials of electronic commerce
- Import – Export sector-specific rules for Food, Cosmetics, Jewellery, Textile

- Incoterms 2010
- Essentials of the Origin of Goods
- Preferential Origin arrangements of the European Union
- Advantages of AEO (Authorized Economic Operator) Approved Exporter Status
- Customs glossary, useful vocabulary for a correct communication with Customs
- Free Download – Customs Area

- Free Download – International Taxation Area

- Essentials of International Contracts
- Ordinary Justice or Arbitration / ADR (Alternative Dispute Resolution)
- Free Download – Legal Area

- Management of the operations of Documentary Credit and International Bank Guarantees
- SACE, Export Credit Agency to ensure credits and to protect Investment
- OCSE – OECD Credit Risk Map
- Free Download – Export Credit Risk from OECD

- Essentials of Logistics and Transport

- Business Model Canvas and other Strategy Tools for drawing up the Business Plan
- Essentials of Business Planning, in the Export and FDI (Foreign Direct Investment)
- Free Download – Examples of simplified Business Plan


- Business opportunities in Foreign Markets and Countries, through projects, Joint Ventures, Contract notices, Tenders
- Opportunities for investors in the framework of financial investment projects and in special projects

- Requested Buyers, Importers, Distributors for Food and Beverage products from UE – EXTRA UE Countries
- Download IBS TRADING Food & Beverage Catalogue
- Requested Food and Beverage products for EXPORT
- Beef Carcass Evaluation through EUROP International System
- Organic Argan oil Certified by USDA, ECOCERT and cosmetic products
- Iranian and Moroccan saffron

- HALAL certification, food allowed in the Arab world according to the Islamic rite

- Crisis or disaster management and immediate Humanitarian actions

- Firewood
- Pallet: its role in the Export, from the packaging, to the goods and machinery storage, to the merchandise transport in the foreign international trade
- Pellets

- Bio-construction and Environmentally-friendly Building, White Home project, “custom-made houses”, antiseismic, environmentally-friendly and intelligent housing solutions
- Used earth-moving machinery, vehicles and goods from leasing-returns or auctions

- Coaching as a solution for personal and professional success

- Summary of the Services for Hotels and Accommodation and methods of provision







With an increasingly liberalized economy, Algeria is beginning to attract more and more foreign investors, through Foreign direct investments, which are beginning to expand in new areas, much different from the traditional ones: hydrocarbons, telecommunications, tourism, Industry, Construction (building, civil works and hydraulic), water and environment, agriculture and food farming, renewable energy.

Algeria has already carried out several projects and there are a lot of them that are under way; despite the situation Algeria keeps on attracting an increasing number of foreign direct investments, because they are getting better and better. The final payment of the investment projects of 2014, analysed by the Agenzia Nazionale per lo Sviluppo degli Investimenti (National Agency for the Development of the Investments) shows a dramatic and dynamic development of investments, as well as a market that is beginning to draw attention on itself.

There have been 9904 investment projects in 2014, a number that has increased with time, for an amount of 2.192 million DA (Algerian dinar), about 20 billion euros. In 2013, there were 8.895 projects for a counter value of 1.716 million DA, which created almost 151.000 job vacancies.

The development of the indicators shows a progressive and constant development of the investments on a national level, and more and more appealing markets. The opportunities development and the market shares to gain, the different partners, the effective efforts to promote business, the assessment of the potential make Algeria a highly appealing country for the foreign business community and network.

Since 2001, 2014 has been the best year in terms of investments, date of application of the disposition that regulates the development of the investments, number of projects, capital invested and potential in creating jobs. This kind of investments development is also found in the region of the plateaux and in the South: in fact, 2.166 of the projects that have been presented have developed in those two regions.

The projects of investment are mostly concentrated in the provinces, with a high concentration of economic activities; 6.514 projects have been realized in the northern regions last year, for an amount of 1.286 billion DA: they should create 109.275 job vacancies. The incentives and the specific support dedicated to the investments in the Highlands and in the South have led to a crescent interest in both regions, as the development plans produced by ANDI about them. The measures taken about these regions must continue and get stronger, in order to contribute to medium and long term development, in line with the stated objectives for the regional balance for the country’s economic and social development.

The measures taken through various reforms, all aimed to improve the entrepreneurial context, is starting to earn the investors’ trust, as demonstrate the more than 1.000 billion DA reinvested in this field. This trust has been confirmed also by some other investments, especially the “entrepreneurial start-ups”, whose number has reached 5.650 projects, almost 57% of what was declared.
As regards the dimensions of the companies, small and medium enterprises that tend to move towards industry, especially industrial processing chains, have carried on most of the projects that have started in 2014.

The industrial sectors are food production sector, chemical and plastic industry, wood and paper industry, textile and leather industry and finally glass industry.
The government provides with big funding for the great projects in the water, energy and telecommunication management.

These results get registered, following the governmental effort to improve Algerian economy in many ways, such as: developing business and entrepreneurship, supporting manufacturing activities helping them recovering through several incentives, especially in the land managing sector, simplifying access to loans and incentives for investments as well as reducing bureaucracy and reforming the public sector.


Algeria has a surface area of about 2.4 million square kilometres, and it is a country with great geographic and climatic biodiversity: there is a vast coastline, high plains, semiarid plateaux and it includes a huge portion of the Sahara, characterized by hot and dry climate. Such an extremely varied environment corresponds with the different exploitation of the soil and the population density.
The coastline represents the 4% of the land area; in addition, two thirds of the population live there. On the contrary, the High Plains region represent 9% of the land area, and about a fourth of the population lives there.

- 38.7 million inhabitants 1st Jan 2014 estimate
- 39.5 million inhabitants 1st Jan 2015 estimate
- 963.000 live-born children, child mortality: 168.000, 388.000 marriages in 2013.


Algeria’s foreign trade statistics for 2014, drawn by the databases of the Customs Information System, have highlighted a development of the trade balance in the following way:
- Imports have increased by 0.6 % by comparison with 2013. Their distribution highlighted that the capital goods have increased by 17.13% and foodstuff by 14.87 % in 2013; on the contrary, non-food consumer goods have decreased by 8.23% and production machinery by 0.35%;
- Goods related to the operation of the manufacturing facilities are mainly built with building materials (bars, steel tubes, wood, etc.) and oils intended for the food-processing industry;
- As regards the division of the various economic areas in 2014, foreign trade mostly takes place with traditional partners. OECD countries have the largest share: 65.03% of imports and 81.01% of exports in Algeria. 14.47% of Algerian imports comes from non-EU OECD countries, and 16.65% of exports are addressed to these countries. Most of the trade takes part with the USA (4.9% of imports and 7.45% of exports) and Turkey (3.64% of imports and 4.61% of exports). Trade between Algeria and other countries is still low.


In order to reduce the number of imports, the Algerian government has issued a law that forbids using imported constructing materials, which are manufactured locally; this measure is also aimed at increasing the integration in the construction industry, and promoting local manufacturers. This law has already begun to bear fruit on the territory. It will increase the percentage of constructing materials “Made in Algeria” in the construction industry, from the actual 70% up to 85%.

This regulation, signed in December 2014, forbids the supervisors of the several projects partially or fully financed by the State resorting to imported goods if the same product is manufactured locally and of the same quality.

In order to achieve it, the Department has entrust the directors of the promotion centres and of the property management offices (OPGI) with improve the implementation of this regulation; they hold the majority of the public housing projects, which represent 75% of the five-year programme for 2010-2014.

Actually, people in charge for the public sector will have to use Algerian products when signing contracts involving Algerian products’ manufacturing. They will also have to join invoices with production contracts with companies that manufacture in Algeria various construction material.

Finally, it must be pointed out that this regulation has a double aim. On one hand, the mail goal is to reduce imports costs of all construction materials, to which the bill refers. On the other, it is about “consuming national products”. About that, all specialists agree on the fact that Algerian products are of very good quality, similar to imported goods from China or Europe.


Algeria’s GDP was 17.731 million dinars (about 221 billion dollars) in 2014; in 2013, it was 16.570 billion dinars (196 billion dollars). Algeria’s economy has increased by 4.1% in 2014, by contrast with the past year and by 2.8% in 2013 compared to 2012. On the contrary, the growth of GDP concerning non-oil related goods has decreased: it went from 5.1% in 2014 to 7.1% in 2013.



The industrial sector has a weak positive growth rate, even if the deep decrease has stopped, growth rates of this sector are still very irregular from one hand and insufficient on the other hand. Indeed the this sector represents a small part of the GDP (lass than 5%). In order to reach 10% this sector should achieve a double digit growth.
In 2013, the industrial added value was 765.400.000.000 billion dinars and 728,6 billion in 2012. ( a nominal increase of 5%). In volume, in 2012 the industrial growth was 4.1% and 5.1% in 2013. It had a clear decrease explained by a decrease in energy supply sector, ISMMEE and chemical industry.

Sectors that have increased growth in 2013:

- Energy supply sector, with an increase of 4.3% in 2013 and 10.2% in 2012;
- Steal and iron industry (ISMME) 5.5% increase in 2013 and 7.4% in 2012;
- Chemical, plastic and rubber with an increase of 5% in 2013 and 5.8% in 2012;
- Food industry sector increased of 7% in 2013 and 5.6% in 2012.


BTPH growth (Algerian state-owned society working in construction sector) is expected to reach 6.9%. This is a remarkable performance but slightly lower than 2012, because of a decrease in public.
Except for oil and public works sectors which had a weak increase in 2013 (+1% in 2013 and 0.4% in 2012), BTPH including oil and public works , had a 6.6% increase in 2013 and 8.2% in 2012.

The Brute Formation of FBCF fixed investments (it is a group that measures gross fixed investments and it is composed of a “physical” component such as constructions, machineries, means of transport and a “non-physical” component such as software and licenses), in 2013 it was the most dynamic component of the demand. Indeed, after that in 2011 growth rate was 2.9%, investments have positively increased of 7.2%, achieving an higher cadence than 2010. In 2013, this recovery trend of investments was confirmed, indeed gross fixed investments had a 8.6 % growth rate. This acceleration in gross fixed investments is due to a 13.8% increase of industrial equipment volumes imports and to an increase in state capital expenditures, as follows:

- Infrastructures and administration +13.7%
- Agriculture and Hydraulics + 6,2%
- Manufacturing services +8.8%
- Education +1.2%


The wealth made with oil allowed the country to recover from foreign debt and to start large scale campaigns to boost is economy. The BTPH economy is taking a great advantage of this recovery.
Algerian government has lunched for the period 2004-2008 , complementar support for growth plans (PCCS) and special projects for Highlands and south.
Almost 70% of imports in this context should be used to develop basic infrastructures, houses and public infrastructures such as universities, schools, sport and cultural centres, hospitals etc…
The housing became a basic need for Algerian people because of population growth rate. The industry abandoned in the eighties and nineties, during the black decade that froze every business, and cause an important delay in the lodging conclusion. The President willingness and the interest in this sector have created a surprisingly real estate development. Moreover, it is famous the sentence according to which “When the construction industry works, everything works”.

As other developing countries, Algeria population and urbanisation have remarkably increased, this has increased the demand for lodgings, basic local services and tools essential for community life.

For lodgings, the President program has laid foundations in order to ensure an intense construction of buildings in the future. In order to diversify lodgings availability to support real estate development, credit development and access to housing. Everything is supported by State finances.

Construction companies are competing and every company tries to face challenges with its resources and leadership.
Private and state-owned companies such as ENPI, ALDA, e OPGI, tend to develop a partnership policy with strong Spanish, Turkish, Chinese, French; Portuguese and Italian companies.
For information, prices decided by the government to create a social housing is fixed between 42.000 and 54.000 DA per square meter (1 Euro= 105 DA).

Moreover, according to the prime minister “Government will not move backwards on promises made for social housings, despite a decrease of oil price”. However, he wanted to underline that there is the possibility to develop a list of construction materials temporary prohibited to import.

The recent increase in population in Algeria during these years, has increased the demand for building areas in the main Algerian cities such as Algeri, Orano, Costantina and Annaba. For this reason the government has continually modified services needed for the creation of new urban systems according to national needs.


1.034.566 are were foreseen by the PCSC but they arrived at 1.228.597 for South and Central Highlands programs. Almost 39% is intended for rural buildings to encourage people to grow their own land. The distribution of 1.228.597 housing units of PCSC is divided in:

- Social housing for rent (23%);
- Social active buildings (23,2%);
- Rural housings (38,7%);
- House for sale (10,5%);
- Other housing kind (4,6%).

Only a small number of housing units have been built in the period 2010-2014. After a five-year plan, in 2014 started a building project to build 418.752, public housing for rent (164.749), rural housing (196.140), social housing for rent (16.081 ), social housing (17.893) leasing housing ALDA (20.600) and housing offered by “CNEP-bank” (3289 units).

These projects have cost billion dinar(around 7 billion dollars) with 1.738 billion DA of funds udes between 2010-2014. High expense rates underline that housing programmes are important projects.

The real estate sector lunched a project for the period 2015-19 to build 1.6 million of houses, in order to solve housing by 2019,improving the business environment for workmen who cooperate with employers organisations.

Moreover the Ministry of housing, urban planning and municipality, announced in January 2015 the creation of a five-year project 2015-2019, a new solution for “self-built” housings. This solution gives to citizens the opportunity to build their own house after having purchased a plot of land and the financial assistance of the State, whether projects respect the urban plan.

Allotments will be allowed in wilays, Southern Highlands and than North wilays. According to data of the Ministry of housing, there are 1098 available areas for allotments, in 425 towns of Highlands and South. The overall are is 6.699 hectares, this allows the distribution of 295/394 allotments.

Moreover, the Ministry of Housing and Urban Development, is trying to adopt corrective measures for construction sectors to lure private investors of this sector; this aims to increase production dimensions. Several building regulations have been revised.

It is a law that includes to avoid bureaucracy in every sector, especially housing, to decrease administrative procedures, for example construction permissions. These subsidies will include reliefs to obtain plot of lands, but also regulations that take into account construction techniques such as PVC and aluminium.

In conclusion, this is the perfect situation to boost this sector, that aims to increase the national production to satisfy real estate market needs. Administrators, business men and industrialists have to contribute to boost the sector, in order to build 120.000 units per year, using modern techniques of construction in building sites that follow international standards.


Only 22% of national companies working in the building sector pushed for build 100.000, have positively answered for this projects, according to Ministry of Housing and Urban Planning.
The new list drafted by the Ministry in 2014 includes 83 companies with 23 more companies selected after several complaints, the final amount is 106. Public promoters, such as ENPI, OPGI e ALDA can use this list to select a company and enter in “over the counter” market, capable of make easier procedures to start housing buildings projects.
Moreover, the strengthen of construction material sector in Algeria, including the creation of 8 new cement plants and plants for steel production in Bellara (Jijel), will be an important asset to support more than 35.000 building entrepreneurs.


The national body for real estate promotion “ENPI-SPA” ha been established after the re-organisation of the housing promotion of family-owned businesses “EPLF”.
Its main goal is build new Public Housing Promotion “LPP”.
More than 32.000 units will be built thanks to the project Public Housing Promotion (LPP) created in 2014.

Works for this projects are developed in 39 wilayas and ranges from 5 and 30%, and the building cadence has increased in 2015. Currently, the companies working in this projects have been selected in the Ministry list (70%), public works (7%), joint ventures (7%), private Algerian companies (20,5%).
The biggest problems for the realisation of these projects are: it is difficult to find plots of lands, especially in Algeri, where have been built 15.906 buildings LPP.

The promotional project (LPP), launched in 2013 has been given to citizens with an income between 108.000 e 216.000 DA.



The AADL, which falls under the supervision of the Ministry of Housing, has the purpose of providing a public service mission and it has a legal entity and financial autonomy. Its goal is to implement, across the whole national territory, the national plan regarding the rental and sale of housing, the promotion, the supervision, the territory and the market property development, the dismantling of the existing slums to transform them into habitable structures with better conditions, the restructuration and restoring of ancient buildings, the urban restoring and the creation of new cities.

This plan also deals with the development of innovative construction methods through its action program, as well as the elaboration and the diffusion of a more extensive information, and the management of the markets and the estate and construction actors (developers, citizens, financial institutions, local authorities, materials manufacturers, advisers, manufacturing companies, property managers, associations…).

The agency also carries out the work given by the Ministry, such as the dossier on the development of new cities like Boughezoul, 270 km from Algiers, Ali Boumendjel in the Costantine wilaya (province) and Sidi Abdellah in the Tipasa province. By way of information, the dwellings intended to be rented out, namely the F4-type, represent 60% of the total, while the F3 residences represent 40%. Regarding the size of the dwellings for sale and for rent, they go from 75 square meters to 90 square meters for F3 and F4 types.

AADL plans to achieve 230000 residential units, including 106373 that have been built but not completed yet, while 124000 are still under construction. We present you how the AADL dwellings have been distributed and the PVC products which will be used for the construction.

Allocation of the housing AADL plan per wilaya (province):

The wilayas and the works that have not been started yet are : Djelfa, M’Sila, Adrar Bordj Bou Arreridj, El-Oued El-Tarf, Illizi, Medea, Ouargla, Oum-El-Bouaghi, Souk Ahras, Tamanrasset, Tébessa, Tiaret ,Tindouf, Tissemsilt.


The country offers different helping solutions (financed by the National housing fund CNL) to buy real estates in Algeria. The Ministry of housing launched the AADL (rental or selling) housing and LLP, but the most known and promotional schemes are the Housing Assisted (LSP) and the rental housing (social housing). The OPGI plan is a very important element which is under the direction of the Ministry of housing throughout the national territory; we hereby present you a list of contracts established with enterprises in the fiscal year 2014.

Le Projet des Villes des HAUTS PLATEAUX:

The goal in the high plains is creating the adequate conditions and measures to develop the cities which can have a knock-on effect in the area covered and as a consequence increase the growth. The goals by 2025 concern the ongoing urban restoring related to the high plains and they require a restoration of the urban system and a well-structured hierarchical system.

In the high plains there are 3 new plans to build cities, as set out below:

 Boughezoul in Medea province: at the heart of high plains region, within the national strategy of territorial development;
 The new city of Aricha, in the Tlemcen province, which is 80 km south of Tlmecen city. It is the only urban project in a territory of more than 20.000 km2 from the western bypass which leads to the high plains, which has been prepared for 150.000 inhabitants by 2025;
 The new city of Inedghassen in the Batna wilaya, which is 30 km north of Batna city and will aim, through its realization, at decreasing the high concentration of population in the other cities.

Other main construction projects:

 International conference center: the conference center is located in the Club des Pins in Algiers, it will be managed by the Chinese company CSCEC and built on an area of 270000 square meters at a cost of 50 billion dinars;
 Marriot hotel: the private group Red-Med aims at bringing to 6 the number of three-star hotels with an investment of 50 billion dollars; the first hotel will be built in ADRAR, the other one near the industrial and port areas;
 MEDINA Algiers: DAHLI Society HILTON hotel project predicts an investment of 2.5 billion Euros, a business that will expand upon an area of 100 hectares near SAFEX in Algiers;
 The Great Mosque of Algiers: it will cost 1.2 billion Euros and it will cover an area of 275000 square meters on the seafront opposite the SAFEX and the MEDINA project in Algiers. The CSCEC has to compete with a Chinese company.

The poles for the development of competitiveness in the High plains area in Algeria

To illustrate the importance of the High plains area in the national policy concerning the establishment of development and competitiveness poles, those which have been planned are set out below:

 Electronic pole: Sétif and Bordj Bou Arréridj wilayas;
 Mechanic and oil pole: TIARET wilaya;
 BTHP pole: M’Sila wilaya , Batna, Djelfa, Nâama, El Bayadh;
 New division energy: Djelfa, Boughezoul, Nâama, El Bayadh;
 Audio and visual industrial division: M’Sila, Bou Saâda, Tébessa, Khenchela;
 High-end tourism pole: Aures Nemmemachas, Saharan atlas Ksour;
 Food and industries pole: Djelfa wilaya and Oum El Bouaghi;
 Local meat and farming pole: Saida wilaya , Tiaret, M’Sila, Djelfa, El Bayadh;


Only 67% of more than 6800 public infrastructure projects set out in the framework of the 2010-2014 five -year plan have been implemented. 3812 of the 10188 investment projects set out at the beginning of the five-year period, have been delivered and 3008 projects are still ongoing, while the remaining has not been implemented yet. These projects are related to 26 sectors including the education and higher education which received the lion’s share among the projects presented.

The result was the establishment of 2784 installations in high schools, primary schools with their helping structures (boarding structures, gyms, etc.) in 6630 projects set out in the education sector, while 1613 installations are currently under construction against 2233 infrastructures waiting to be constructed.
With regard to higher education, 390 installations have been delivered. The initial plan called for 1016 installations, including the 325 projects currently ongoing, against 301 projects which have not been started yet.

Efforts on the construction of public structures led to a strong increase of the financial investments which overcame 773 billion dinars. The Ministry of housing sets out to provide installations for 1138 projects and other 1285 development projects in all sectors by 2015-2016. The situation of the sectorial projects of public structures is relevant only for projects whose specialization in the works is guaranteed by delegation of Ministry of Housing and Urban Development decentralized structures. Wilayas (provinces) are usually responsible for residences and the DLEP public services depend on the UCR urban planning and construction managements.


For the National Agency for Healthcare Equipment and Management of Health infrastructures (AREES) a budget of 400 billion dinars will be allocated to the construction of 5 new UHCs (university hospital centers) in Algiers, Tizi-Ouzou, Tlemecen, Constantine and Ouargla. Similarly, the agency stated that the construction works of the new hospitals would start soon, they will cover an area of 5 million square meters and will be completed within 48 months of the beginning of work.

Moreover, 600 billion dinars will be allocated to the restructuring of 15 UHCs and will cover a 10-years period, having established that the state of the 15 existing hospitals is not meeting the international minimum requirements.

To overcome this challenge, the Ministry of Health launched a project of requalification, restructuring, improvement and repair of existing buildings, many of them being almost 100 years old and originally military camps.


The potentially available resources in Algeria are estimated to be about 18 billion cubic meters, 10 billions of which are surface resources, 2.5 billion cubic meters are underground water resources in the north and 5.5 billion cubic meters are both surface and underground water resources, in the south.

To face the challenge of guaranteeing an adequate coverage of the continually increasing water needs at national level, for both agricultural and industrial purposes because of an alarming shortage of the resource, a new national water policy has been implemented since the beginning of the 2000s. It revolves around three main axes : improving the organization and development of resources in all their forms, the economic protection of water and the reform of water governance framework.

There are currently 70 dams that are operating, 14 in construction for an overall capacity which covers 8.4 billion cubic meters of sea water, 9 desalination plants in operation and another four under construction for an overall capacity of 2.3 million cubic meters per day. Moreover, the 140 waste water treatment plants allow to recover around 800 million cubic meters of treated waste water per day.

These management infrastructures of the waters originating from both conventional dams and large transfers and underground water or unconventional from desalination sea water plants and recycling of sewage disposal, are giving concrete solutions to the problems of water shortage in Algeria. The concrete results of this proactive action by the State should be noticeable very soon. The development indicators in the water sector have increased substantially largely overcoming the millennium targets set in this sector by the United Nations.

The equal distribution of water resources between the different regions of the Algerian territory is a key factor of the policy implemented by the government. To overcome the geographical differences, a regional water infrastructure plan has been implemented in order to guarantee a better equality between the regions regarding the access to water. In the last ten years, important measures have been adopted and are now under construction for ANBT.

These aqueducts meet the targets regarding the strategy for food safety of the country and they are aimed at supporting the regions with a strong agricultural potential. Therefore, for example, with the construction of big aqueducts in the Sétif and Djelfa wilayas, the government intends to make those wilayas wheat-producing regions, which, within few years, will guarantee 20% of the country’s need in this sector.
These measures are aimed at connecting the water resources of the different regional systems in favour of the big urban centers, while the neighbouring cities will be served by smaller infrastructures.


- Census of the houses to be connected for the supply of gas;
- Launch of studies to implement projects;
- Definition of the annual plans per wilaya;
- Beginning of the construction works by the companies managed by Sonelgaz in accordance with the provisions on public procurement.

Regarding the gas distribution of the public grid it has been set out:

- The connection of 1000000 users;
- State programme which predicts a quota of 211600 MDA (million dinars).

The investment prospect of SONELGAZ for the 2015-2019 period focuses on the means of production and on the conveyance and distribution of gas. A supply plan has been established to meet the national market’s needs for natural gas. This large project has the goal to meet the populations’ demand for gas, the safe supply in the country at the end and the medium and long-term support, especially, for the development of the Highlands and southern areas. This program concerns the supply, NG and LPG, for new clients.

5900 kilometers of transmission system at a high pressure will be constructed and the existing system is planned to be extended. The financing of this new plan is covered by state funds to 75%, while 25% will be covered by Sonelgaz. The gas transmission system, which will be completed by 2023, will be 11553 kilometers long, 7862 km of which have already been approved. The total amount set out for all the works related to the development of the system to transport gas for 2014-2023 period is around 382554 million dinars.


The developed program concerns the following 10 wilays in the SOUTH: Adrar, Laghouat, Biskra, Bechar, Tamanrasset, Ouargla, Illizi, Tindouf and Wadi EL Ghardaia, without mentioning the creation of the new city of Hassi Messaoud in the framework of this oilfield preservation. Therefore, the development which has been decided in the framework of the special program for the development of the South will cost 377 billion DA (dinars). More than 296 billion dinars are allocated to improving the life conditions of populations, including:

 More than 110 billion dinars for the realization of 60000 additional dwellings;
 Almost 20 billion DA to connect houses with natural gas and electrical energy;
 More than 80 billion dinars for water resources;
 Almost 7 billion DA allocated to higher education especially for the creation of 10000 additional teaching jobs and 7500 refugee accommodation;
 Almost 12 billion DA for national education and the creation of 14 high schools, 50 primary schools, 497 classrooms, 202 school canteens and 327 sport facilities;
 More than 3 billion dinars for vocational training, in order to create 11 training centres and 10 specialization and internship centres;
 15 billion DA for the health, in order to build new hospitals, two university hospitals, laser therapy units and 13 specialist care centres;
 Almost 6 billion dinars for youth and sport sector to create 10 gyms, 16 sport and helping centres and 31 swimming pools;
 19 billion DA for the enhancement of tools for employment promotion;
 3 billion of dinars for the culture sector in order to create of 19 libraries, 2 theatres, 1 museum and 1 music school;
 2.5 million DA for environment safeguard.

Around 74 billion DA for the economical development, including:

 More than 47 billion dinars for the development and enhancement of road network;
 More than 2 billion dinars for transport sector;
 More than 17 billion dinars for agricultural sector;
 More than 2 billion dinars for the development of industrial sector and of activities;
 More than 1 billion DA for the development of small and medium enterprises, craftsmanship and tourism;
 3 billion dinars for the improvement of bank credit interest rates for the investments in small and medium enterprises and in the agricultural sector;
 Around 20 billion DA for the improvement of management and administration methods, including justice and inspection services.


During 2014 Algeria showed a sharp increase in investment projects, equal to 28% compared with the allocated contribution in 2013. According to the Ministry of Mines and Industries at least 10000 investment projects have been launched during 2014.
These investments focused on the setting up of manufacturers which produced an additional value in several sectors, including the industrial one, and the extension to others, with a cost of 2 billion DA (dinars); 1.5 billion DA of them have been used to foreigner partnership projects, equal to 62% of the total cost. 60% of these projects concern the development of productive potentials, the introduction of innovative technologies and the acquirement of knowledge and instruments for the governance and the development of enterprises on national and international markets.

These projects involved different market segments, including Agri-Food, Industries, Chemistry and Industry. These results “provide information on the steady improvement of the business climate in Algeria”, including the partnership with foreigner operators.

The industrial sector, where the investments mainly focus on transformation sectors, appears in the forefront both for the amounting of investments and in the potential for job creation, with 1845 projects and 1507 million DA in 2014, with a potential for creating 71362 jobs (42.27 of the total potential).

The same is true for investment projects concluded with foreigners, which focuses on industrial sector and this is the case of 74 projects amounting to 156 billion DA, especially in the steel, mechanical and electrical, chemical, food and construction materials sectors. Moreover, it has been noticed a significant investment volume of partnership in the regions of Haus Plateaux and in the south.

On the whole, the most affected industrial districts pointed out by ANDI (National Agency of Investment Development) are the food industries (IAA), which represent 26% of all industrial projects which have been highlighted, followed by construction materials one 22.4%, the steel, mechanical and electrical industry (ISMME) to 17.13% and chemical industry to 15.72%.

These findings show a strong effort in the industrial sector by the government for the diversification and development of the industrial activities, and show important markets to be hold in different areas of activities and industrial processing, LPN (Natural Conservation Act), extraction activities and other sectors.


The local row materials production, in spite of the great stocks, it cannot meet the sharp increase in local demand, which required an increase in import, including imports of cement, steel, pipes, materials and equipment, such as: floor coverings, plumbing, electrical equipment, locks, etc … … and the production of materials, machines and equipment. The secondary market, which benefits from a stable construction sector, suffers from low quality of local production.

National construction sector

The decision of the government concerning the ban on imports of construction materials is justified by a national production modestly sufficient for the implementation of all programs. The country’s authorities said: “Importing row materials that can be produced in our country is an economic crime.”

The country’s reindustrialization project will involve the support of internal production that in different sector could and must replace the imports. Therefore, it will be important to develop the small and medium enterprise and the supply, which will receive increasing attention through the facilitation of the proceedings of the creation and support to development plan.

The strategy will focus on the removing of constraints to a sustained growth and it will be supported by the improvement of investment conditions. Therefore, ANDI will become a specialized pole that will lead the potential investors in promising projects and follow up their implementation and provide advices for the organization and management and also on the investment promotion act which will be modified in accordance with the investment liberalization and with the entrepreneurship and the public support to the business projects.

The imported products will be replaced by materials locally produced

The imports cost will be reduced replacing the wood with other products like PVC and aluminium, especially in the construction sector. The country imports from an average of 300 to 320 million dollars in wood every year. The wood industry realizes a turnover of 12 billion dinars (12 million Euros). A significant part of coniferous imports comes from the northern countries (Finland and Sweden) or from Russia. Oaks and beech trees are imported by Europe, the tropical wood comes from Africa and Asia. The demand is estimated to be 1.5 million cubic meters every year, while the local production is able to meet only 15% of the demand. This caused an excessive expenditure for the wood import, especially because of the needs regarding the projects launched by the state.

PVC and aluminium to stop using the wood

The construction sites monopolize more than 70% of wood imports. Although the government took actions to educate the constructors about the benefits of using formworks with metal stamps which offer longer depreciation periods of the wood, the manufacturers keep on using the wood, even though its high cost.

On the contrary, other materials take their part in the Algerian market, especially in the carpentry sector for the residential and promotional construction. For example, the PVC locally produced has a production capacity of 30000 tons, while the volume of import from Turkey and China are unknown. This product has advantages that reduce the long-term costs because their duration is estimated to 50 years.

Another material is the aluminium and in particular the plant located in Beni Saf (Témouchent) is managed by a consortium of companies that promote development: Moubadla (Moubadala Development Company), Dubai Aluminium (Dubal) and by an Algerian consortium made of Sonatrach and Sonelgaz. They have a production capacity of 700000 tons per year. Another foundry, with a capacity of 1.5 million tons per year, is going to be built by 2016. Therefore, the wood imports are supposed to be reduced in the future. Currently the construction deployment of all wood elements is equal to 70%, against the aluminium and PVC use which only represent around 15% each one.


The number of the companies included in the census of the national territory runs into 990496 unities and more than 934200 of them are limited liability companies which represent more than 94% of the total and the remaining of them (56246), equal to 6%, are management consulting centres; these are the final results recorded by National Statistics Office (NSO).

This important action, the first of its kind in Algeria, showed that the national economy is largely dominated by solely companies to 95% (888794), while the legal entities (enterprises) represent only the 5% equal to 45456 unities. This finding shows that the Algerian economy mainly depends on micro enterprises.

The structure of legal entities in the wilaya shows a concentration of 21% capital, followed by Oran wilaya (6.8%) and Sétif 5.3% from afar. This is the result of the market survey which was aimed to the census of all economic and management institutions, whatever was the sector or legal form, not including the agricultural sector.

The same trend has been observed in solely companies, therefore, Algiers area is characterized by the presence of 9.9% economic actors, followed by Oran (5.6%) and Sétif (5.1%). On the other hand, the number of industrial realities identified is 95445, 24.8% of which operate in different sectors: 23,4% in the metal product manufacturing; 11,1% in clothing; 1.7% in wood processing; 1.3% in textile; 1.3% in repair and installation of machines and equipment.

Moreover, 84% of 934250 enterprises, equal to 781439 are located in urban areas against 16% equal to 152811 in rural areas. Regarding the urban areas, Algiers is in the forefront with more than 12%of the total, Oran is in the second place (6.6%), followed by Sétif wilaya with 4.8% according the final results of census. With regard to rural areas, Tizi Ouzou wilaya is in the forefront with 8.1% of the total and Sétif is in the second place with 6.7%. In terms of activities, 81.3% of extractive industries are located in rural areas, while the production represents 19%, according to the survey findings.


Regarding the findings in the construction field, the census recorded 26780 enterprises, whose main activity is the construction. It should be noticed that 17% equal to 4222 Enterprises of the total 26780 have been ranked and qualified to launch the 5-year plan.

While the public actors are affected more strongly by budgetary constraints, private national measures are currently experiencing a sharp increase related to the enthusiasm developed from the prospects and growth opportunities of BTPH sector. Among the foreigner enterprises, the Chinese ones are very competitive, they indeed won the majority of the last public procurements in the construction sector. A lot of actors coming from the Middle East and from Turkey, such as Sidar, Emar, Fiducia Investimenti… and construction companies such as Arab Contractors, Atlas, etc, are benefiting from the current situation.


The Ministry of Public Work (DPW) manages a road network of around 108000 km (70% is paved road), 4800 bridges and provides 85% of goods and people transport in the country. A quarter of current network is in poor condition and half of the works need to be restructured. The main projects concern the creation of East-West highway. This is the main goal of the government (recorded project as PCCS), 1216 km long, which will connect the main northern cities of the country.

The highway project in the Highlands, which will connect Tlemecen wilaya to Tebessa, has been launched recently. After the preparation of studies related to this project of 1020 km, they will start the works of the stretch of highway regarding TIARET, which will connect the Algerian –Tunisian border, 800 km long, while those related to the stretch Algerian- Moroccan of TMLECEN will start later.

In the framework of PCSC programs and the special programs for the south and highland, there are also projects for restructuring more than 14000 km of roads and 50 bridges, building more than 3700 km of new roads and 216 bridges and realizing 3700 km of channels to reach rural cities. The Ministry of Public Works is thinking about new projects for the future, including:


17 projects regarding the 1396 km of fast motorway connecting the East/West Highway identified by ARDS in the period 2005-2025:

 A.P.D. project, the highway connecting Bejaia to East-West Highway for 100 km;
 Freeway planning and development at the suburbs of the great winds park;
 Highway planning in the highlands;
 Planning of the third bypass in the south of Algiers: Bourmedes-Tipaza south 150 km long on two lanes;
 Planning of the fourth Ring Road between the wilaya of Ain Defla and Bordi Bou Arreridj on 300 km;
 The doubling planning of RN 01 for 320 km;
 The doubling planning of RN 67 for 20km;
 The expansion planning from 2 to 3 lanes of the highway connecting the second Ring Road of the new city of Bouinan for 13km.


 Implementation of the third ring road Bourmedes-Tipaza for 150 km on two lanes;
 Completion of the fourth Ring Road between the wilaya of Ain Defla – Bordji Bou Arreridj for 300 km on two lanes that can be extended to 3 lanes through the wilaya of Tupaza, Bilda and Bourmedes;
 Implementation of Bou Ismail Cherchell freeway, connecting to OEA for 65km;
 Implementation of the Transrhumel and Constantine viaduct;
 Development of a stretch of two-lanes highway RN 12 for 23.5 km;
 The doubling realization of RN 01 for 70 km between Bougheoul and Berrouaghia and in the province of Medea;
 The doubling realization of RN 24 for 9 km (second Tranche) in the wilaya of Algiers;
 Realization of roads in 10 tourist areas of the 7 coastal wilayas of Algiers, Tipaza, Annaba, El Tarf, Tlmecen, Oran, Aïn Témouchent, Mostaganem;
 Realization of the main highway section in the highlands for 600 Km Saida Batna;
 Completion of the freeway connecting Djen Djen harbour up to EO Highway for 100 km;
 Implementation of a two-three lane highway connecting the second ring road with the new city of Bouinan for 13 km.


The expected results for the construction of harbours until 2025 are as follows:
 Construction of nineteen (19) harbours addressed to people who dedicate to fishing;
 Capacity development and enhancement of twenty-one (21) harbors dedicated to fishing boats;
 Construction of sixteen (16) tourist harbours;
 Protection of twenty-seven (27) land sites for 16 km;
 Realization of thirty-six (36) beaches;
 Maintenance of 498 beaches and development of 36 accesses to the beaches.


The project of road and highway development (ARDS) 2005/2025 is the framework which led to the optimal structure of the current road network, aimed to meet the future road links and road transport to boost the social and economic development of Algeria until 2025.
This goal focuses on the following main areas:
 The continuing extension capacity of the network;
 The intermodal transport enhancement;
 The heritage and environment conservation;
 The road network improvement in the highlands;
 The motorway network improvement in the deep south, the development of the main links and of the border roads to open up towards a higher development of exchanges with Africa.


The government puts great emphasis on the railway sector in which allocated a large investment. In 2012, the Algerian government announced that it sets out a massive investment of approximately 18 billion dollars in this sector for the modernization of railway transport infrastructures until 2015.
The current figure of 25 billion dollars is currently on the agenda of National Agency for Studies and Monitoring of railway investments implementation (ANESRIF) is the prime contractor in this sector. The main projects are as follows:

 The modernization of the Northern Moroccan railway ring road, Annaba -Algiers-Oran, border of 1200 km;
 The modernization and creation of the new railway lines starting with the northern junction;
 The electrification of the current lines, including the northern bypass;
 The electrification of the suburban network of Algiers;
 The complete electrification of the Algerian network (expected by 2020);
 The modernization of 430 km of railway lines;
 The implementation of 391 km of new lines;
 The modernization of lines and stations for 1100 km;
 The doubling and rebuilding of more than 600 km of lines;
 The high speed rail implementation;
 The two North-South lines implementation.


Taking into consideration the current market data and the trends for the future in different sector, it follows from the above that the BTPH market is largely developing. The public works sector plays an important role in the government action at short and long term. It shall boost the recovery with a significant number of created jobs. Road and airport plans should lead to a consumption level of bitumen of approximately 1 million tons per year for the next five years.

Moreover, the fairs which have been held in Algeria in the last years, such as BATIMATEC; FIA; SITEP, SIEE, PMI, ect… offered the opportunity for investors in order to have a better perception of Algerian market and review its industrial potential and its opportunities, which would possibly offer in terms of alliances and partnership. These fairs have proven to be important events for entrepreneurs and foreign firms at international level.

The BATIMATEC 2015 is indeed an event that aims to introduce all the potentials of the construction industry which represents both in economic terms and evident results for all those who wonder what it might mean in terms of economic recovery and entrepreneurship. It would be a sector recovery of huge dimensions to such an extent that there will not be Algerian firms enough to meet these needs. It will be a benefit for foreign groups to show their skills.

The information on investment made to identify the level of investment in Algeria are reported below:

Distribution of the investment projects implemented in the period between 2002-2012

Algeria suddivisione progetti di investimento
Algeria progetti di investimento partenariati e investimento locale


Source: Bank of Algeria

Algeria evoluzione del tasso di cambio

The yearly average rate of the dinar has depreciated against the dollar by 2,36%. The yearly average exchange rate of the Algerian dinar against the US dollar is estimated to be at $ 79,3809 USD/DZD in 2013, 77,5519 USD / DZD in 2012. The yearly average exchange rate of dinar has depreciated against the euro by 3,21% in 2013 compared with 2012, increasing from 102,1627 EUR/DZD in 2012 to 105,4374 EUR/DZD in 2013.


The society is the lifeblood of all industrial development process of a country. Algerian government is currently aimed at providing the opportunities for the growth of modern and innovative enterprises, and development in international standards of excellence and competitiveness. The government focuses on stimulating the entrepreneurship, encouraging the project leaders and the innovators, operating on different levels towards this objective. The government is working methodically in order to eliminate all the development constraints for enterprises and investments.
The Algerian market is one of the most profitable in the large Eur-Afrique area. It offers good development prospects within 2030. The growth mainly derives from the national programme for housing with the aim of reducing the huge housing deficit that Algeria accumulated during the last decades and that has gradually been eliminating successfully.
BTPH, indeed, is the engine for economic growth and it is the backbone of the Algerian economy, the sectors of housing, constructions, public works and residences which keep showing a growth in comparison with other sectors.
The unprecedented involvement of the government in the country boost explains this growth. The positive tendency, therefore, will be maintained for years because, first of all, the requirements for social demand are still numerous and ever-changing.
Considering that the expressed national needs are around 250.000 unities per year, there is an urgent need of country modernization; therefore, other important construction projects are planned. The last housing programme is a significant example for ambition and size. Of course, in this field, it should be mentioned that there are no engineering, new techniques and technologies to face these challenges.
Moreover, apart from few big Algerian enterprises, the majority of the others cannot face this challenge. These big projects require the participation and the direct involvement of foreign partners, required to transfers powers and technologies. Finally, it should be mentioned that the construction industry has become the leading job provider in Algeria.
Besides the known strategic activities of the State, there are also the creation of new cities on the two motorways adjacent to the cities of Algiers and Blida. This opens new grounds to current depressed areas, which will be able to take the pressure off the big cities.
For this reason, we can add the development plan that is targeted to highlands and south Saharan areas population, especially through the building of new cities and the expansion of existing ones.
An important indicator provides information on the BTPH activity that is the sector of fair-trade. Trade show in this sector in Algeria, indeed, such as BATIMATEC, la FIA, la SITEP il SIEE, small and medium enterprises, BEST 5 ALGERIE, etc. in the last years have offered the opportunity for the investors to have a better perception of the Algerian market and to measure its industrial potential and the opportunity that the market has most likely to offer in terms of alliances and partnership. These events established themselves as key element of the profession on a global scale.
Looking closer at the achievements of the Algerian economy showed by different reports and analyses by national or foreign institutions, the constant peak of growth is evident, deriving from a considerable programme mainly in public investments and by significative efforts by the private sector.
The Algerian economy doesn’t just work on the sector of hydrocarbons, BTPH and others, but also services, such as agriculture, show their considerable dynamism. According to COFACE (http://www.coface.com/Economic-Studies-and-Country-Risks/Algeria), in Algeria the enterprises benefit from a bright and increasing economic context. This takes into consideration the internal demand force caused by the State projects and by the consumers expenditure increased sharply after the job creation which produces additional income for families.
The choice of moving to Algeria through joint ventures is a strategic step for SMEs and investment projects shareholders. 2015 begins with promising economic prospects. What can be more favourable for the entrepreneurs than a social-economic environment characterized by social party and an increase in great infrastructures projects?


Developing and keeping good relationships with Algerian people is possible, by understanding better their way of thinking.
- The organization for a business appointment is necessary for itself. The Algerian weekend is composed of Friday and Saturday. The office are open from 8.00 am to 4.30 pm.
- Arabic is the official language of Algeria. The national languages in Algeria are Arabic and Tamazight. French is used as technical and professional language;
- The paperwork in French is preferable only to those in English and Arabic. The use of images too close with the local costumes and traditions could cause stress, in the introduction (pig sausages, eroticism, etc.);
- To book your hotel, the capital offers a lot of great hotels. Quality hotels are completely booked in a short time during international events (conferences, trade shows and exhibitions …). It is better to book at home before leaving. International hotels provide a free shuttle service on advanced reservation. On the contrary, you should take into consideration a taxi or a car service;
- Avoid long road trips, at night, especially unescorted by Algerians. Avoid showing off an attitude of excessive luxury. The extremely friendly attitude showed by local people must not make us forget the basic precautions;
- In Algeria, the relationship dimension is very important. We have to take time to know the informal approach. It is, therefore, necessary to take into consideration this parameter to choose the programme. However, arriving on time to an appointment is a sign of respect for the person who has accorded with. Don’t let you be deceived by appearances, the way your interlocutor dresses or the small dimension of his enterprise should not be a reason of discrimination and could not reflect the real potentials.
- “Classical” clothes for men and “no provocative” for women are recommended. Don’t forget that your interlocutor is more familiar with your cultural context through media (satellite uplink, trips and internet) than you with his);
- Concentration, being available to their needs and priorities are recommended. Make sure that you have identified well your interlocutors; it is necessary that negotiators have the same level of responsibility and/or technical level;
- Algerian businessmen are often involved in different entrepreneurial activities and can show more business cards. The familiar dimension of Algerian enterprises can make these operators become good partners;
- The public and private sector have not the same way of trade functioning. The publishing procurement can be postponed or done in a short term. A sustainable partnership is often required. The support of legal advisory is essential to guarantee a rapid intervention within the required times;
- In Algeria, European product brand image is acknowledged. French are more facilitated in comparison with the other nationalities because of their cultural closeness, and quality of their products/services, know-how and technical assistance. Nevertheless, the competitors of all over the world are numerous and very competitive towards French.
- Although they are price-sensitive, Algerians are sensitive to consultancy and training support of post-sell. Your interlocutors could have a strong technical knowledge or a knowledge of small enterprise;
- In a market open recently, like Algeria one, there are business development opportunities. Your interlocutors sometimes could have as financing capacity as lack of preparation in their project;
- Credit cards have not been used yet, except in international hotels. Banks are currently installing electronic payment devices;
- Algerian post services are good enough. However, delivery time can be long. For important communications or sending money, choose the registered mail or courier services (Chronopost, UPS and DHL are available in Algeria);
- The period of Ramadan lasts one month. It is a fasting period and the restaurants are closed, except the international hotels, and all the shops close before and during the fasting period.
- Algerians prefer the personal contact. They like knowing their partners before giving confidence. A negotiation relationship will be more favourable at the end, after two or three preparatory meetings;
- Stay informed on the economic events in Algeria to make the trips more regular and keep contact; – In the framework of a partnership, Algerians give priority to an enterprise with a long-term presence on the territory. Algerian trading partner is often involved and is committed to ensure that the business relationship works. However, sometimes, there are some management slowness problems to be faced, that foreign partners have difficulty to understand and deal with them;
- The heaviness of the banking system tends to hinder and weaken the enterprises. The number of government reforms aimed at improving the financial system, is gradually improving the situation;

Vacation days and religious events:

1st January: New Eve;
8th March: International Women’s Day;
1st May: Labour Day;
5th July: Independence Day (5th July 1962);
1st November: Revolution anniversary (1954);
Dates of the religious vacations vary depending on the lunar calendar.

contact IBS by mail



Benin - Country Profile


Capital: Porto-Novo
Largest city: Cotonou
Official languages: French
Government: Presidential republic
Total area: 114,763 km2
Population: 10,872,298 (2016 estimation)
GDP: total $27.177 billion / per capita $2,297 (2017 estimation)
Currency: West African CFA franc

Economy composition

Agriculture accounts for a quarter of GDP and 51 percent of the country’s employment with cotton as its primary export commodity. The informal sector, including subsistence agriculture, contributes up to almost 60 percent of GDP and engages over 80 percent of the labor force. Diversification slowly advances led by the agriculture and service sectors. During the period 2010-2016, the primary sector contributed by 0.5 percent to the real GDP growth while the secondary and tertiary sectors accounted for around 1 percent and 2.2 percent respectively, shares that have changed little since 1990 for when data are first available.


The agricultural sector is highly dependent on rainfall patterns and, mostly, on one major commodity (cotton). Despite its low productivity, agriculture remains one of the main sources of growth and employment of the country. To further contribute to economic growth and poverty reduction, productivity should be considerably strengthened. Agricultural exports are concentrated on three groups of products: cotton, fruits (pineapple), and nuts (cashews) and oilseeds (soy and cottonseed). To address the needs of a growing urban population, the country continues to import a large share of horticultural products from neighboring countries (mostly, Burkina Faso and Nigeria), rice from Asia, wheat, frozen meat and milk from Europe, and frozen poultry from Brazil. The agricultural sector faces the triple challenges of diversifying exports, increasing food production, and sustainably increasing farm and post-harvest productivity. The share of the agricultural sector has declined across low-income countries over time but has remained elevated in Benin.


During the last decade, growth in Benin has been comparatively highly volatile and per capita GDP growth has been stagnating. Real economy rebounded to 4 percent in 2016 compared to 2015, where the growth rate slowed to 2.1 percent due to weak agriculture output generated by unfavorable weather and negative spillovers from Nigeria. From 2006 to 2016, real GDP growth averaged 4.2 percent driven mainly by the services. The fiscal deficit grew from -0.4 percent of GDP in 2012 to -6.2 percent of GDP in 2016. In addition, economic growth was not inclusive. Notwithstanding recent progress, Benin remains a low-income country with almost 11 million people and a per capita income of US $ 790 in 2015.

The rapid population growth—which averages 3.5 percent per year—led to a modest and unequal increase in household consumption. Indicators related to education, health, access to water, and infant mortality have improved in recent years but at a slow pace. Growth has been accompanied by a low level of job creation with widespread underemployment affecting especially women and the youth in urban areas. FDI (Foreign Direct Investment) is keeping its pace with sub-Saharan Africa countries (SSA) but more investment is needed. Comparing Benin to SSA countries presently, the share of the manufacturing and services sectors is ahead of most of them, reaching 75 percent of GDP.

Benin - Employment by sector

Benin Sectoral Employment by Gender

Export Diversification

Export diversification has not taken place. African benchmark countries diversified quite strongly after 1990 and have caught up to Asian benchmark countries. The number of export partners has increased on average, but the shares of the main export partners remain dominant.

Necessary Policies

Economic policies should focus on addressing weaknesses that hinder entry into new lines of economic activity. In particular, measures that could help improve productivity in the short run include:

• the large-scale adoption of improved agricultural technologies
• the development of productivity through efficient water management, reduction of post-harvest losses and better access to market through warehouses and other facilities
• the institutional support to the Ministry of Agriculture and other stakeholders in the sector
• a better access to financial services

Furthermore, measures to improve education could render significant impacts on the informal economy.

Financial inclusion and development

While access to finance is improving, relatively to other sub-Saharan countries, a number of reforms could foster financial inclusion and complement efforts to promote the expansion of the private sector and employment creation. Benin’s financial sector is shallow, segmented, and with limited financial inclusion. Three main categories operate in it: the banking sectors, the microfinance institutions and other non-bank financial institutions.

As of end-2016, there were 15 commercial banks, with 4 banks holding about 80 percent of credits to the banking system. Although the banking system remains stable, its depth has not improved. The banking sector is broadly sound but plays a limited role in financial inclusion. According to the BCEAO (Central Bank of West African States) 2010 estimations, there is a low level of access to banking service. More precisely, the number of deposit accounts in commercial banks relative to the active population is around 5 percent. Despite banks have developed branch networks in the country, only 17 percent of the population had a bank account in 2015. Access to finance is difficult for some vulnerable groups and for small and medium-sized enterprises.

The microfinance sector plays an important role in providing financing to both sectors of the economy and rural population that are underserved by banks. Despite the fact, that microfinance plays an increasing role in reducing poverty in Benin; it lacks to provide financing to small and medium enterprises, in particular, long term loans. The large number of unauthorized MFIs represents a high risk for the banking system, and requires a further tightening of licensing requirements. Although the number of bank branches has been recently increasing, in particular in rural areas, there is room to further expand financial inclusion by strengthening the regulatory framework.

Access to an account in Benin compares poorly with averages from low income countries. Male reported higher access than females and the level of education is also a factor determining access to an account.

Benin - Having an account

Benin’s financial sector provides limited contribution to private investment because the institutional framework discourages commercial banks from taking risks and because the cost of establishing bank branches in rural area is very high. Benin is performing relatively well regarding use of mobile banking holding around 5 percent of the total volume of mobile transactions in the WAEMU (West African Economic and Monetary Union) region, but there is scope for further progress.

Benin - Volume of mobile transactions

Efficiency of public investment in Benin

Benin is projected to increase public investment volumes significantly to help close the region’s infrastructure gap. Benin is lagging behind SSA average in electricity supply, paved road density and telecommunication infrastructure. Benin has historically spent much less on public investments than its neighbors. Public investments as a proportion of the national budget were maintained at an average annual rate of 36.7 percent from 2010 to 2014 despite significant needs. The country performances regarding public investment appear weaker in comparison to similar countries. Although Benin’s public investment effort is above the WAEMU countries average, it has drastically decreased since 2010. Access to public infrastructure such as electricity or treated water has scarcely improved since the 1990’s. To close this gap, Benin is envisioning to significantly boost public capital expenditure in the medium term. In addition to the infrastructure gap, however, infrastructure is also perceived as being of low quality, and investment efficiency appears low. The most recent World Economic Forum’s (WEF) Global Competitiveness Indicators ranks Benin behind the SSA average.

Benin - indicators of Infrastructures quality


Benin faced a difficult macroeconomic situation characterized by two factors. Growth has slowed significantly and the public debt-to-GDP ratio reached 47 percent in 2016. At the same time, low tax revenues constrain the government’s ability to achieve social objectives. To address large macroeconomic imbalances Benin launched a reform in 2017 centered on domestic revenue mobilization. The reform sought to boost tax revenues through an increase in the VAT rate and cut non-priority spending to contain the accumulation of public debt. The reform reduces the income of the urban poor and income inequality in rural areas.


Benin’s solid macroeconomic performance did not translate in a meaningful reduction in poverty. Following a decade of mediocre economic performance, growth over the last 3 years (2013–15) averaged 5.2 percent, closing the gap with SSA average in per capita GDP growth. Despite the increase in real GDP per capita since 1987, the poverty rate in the country deteriorated in recent years. An overall estimate of poverty in Benin conducted by the National Institute of Statistics and Economic Analysis (INSAE) shows that the percentage of population that lives in poverty conditions grew from 36.2 percent in 2011 to 40.1 percent in 2015. However, Benin’s level of development has remained virtually unchanged, as its Human Development Index has risen from 0.480 in 2015 to 0.485 in 2016 below the average of 0.523 for SSA countries.

Benin - Real GDP per Capita 1965 - 2016

Benin - Human Development Index 1980 - 2014

The country registers considerable decline in rights, being the seventh most deteriorated country on the continent. There is a concerning regression registered in freedom of expression, association and assembly. At the same time, Benin is the eighth most improved country in Education (+10.6) on the continent, especially in primary education.

References from the International Monetary Fund:

Dabla-Norris, Era, Giang Ho, Kalpana Kochhar, Annette Kyobe, and Robert Tchaidze, 2013, “Anchoring Growth: The Importance of Productivity-Enhancing Reforms in Emerging Market and Developing Economies”. IMF SDN/13/08.
Dabla-Norris, Era, Jim Brumby, Annette Kyobe, Zac Mills, and Chris Papageorgiou, 2011, “Investing in Public Investment Efficiency”. IMF Working Paper 11/97.
Dominguez-Torres, Carolina and Vivien Foster, 2011, Benin’s Infrastructure—A Continental Perspective. Policy Research Working Paper 5689. The World Bank. June Henn, Christian, Chris Papageorgiou, and Nikola Spatafora, 2013,” Export Quality in Developing Countries,” IMF Working Paper 13/108.
IMF, 2014a, “Sustaining Long-Run Growth and Macroeconomic Stability in Low-Income Countries—The Role of Structural Transformation and Diversification.” IMF Policy Paper, March.
Imbs, Jean, and Romain Wacziarg. 2003. “Stages of Diversification.” American Economic Review, 93(1): 63-86.
Medina, Leandro; Andrew W Jonelis, and Mehmet Cangul, 2017, “The Informal Economy in Sub-Saharan Africa: Size and Determinants,” Working Paper No. 17/156 Papageorgiou, Chris, Fidel Perez-Sebastian, and Nicola Spatafora, 2013, Structural Change through Diversication: A Conceptual Framework. International Monetary Fund. March.
Regional Economic Outlook, 2015, African Department. International Monetary Fund. April.
Maria Albino-War, Svetlana Cerovic, Francesco Grigoli, Juan Carlos Flores, Javier Kapsoli, Haonan Qu, Yahia Said, Bahrom Shukurov, Martin Sommer, and SeokHyun Yoon, 2014, Making the Most of Public Investment in MENA and CCA Oil-Exporting Countries. International Monetary Fund, November.
Foster, Vivien, and Cecilia Briceño-Garmendia, 2010, Africa’s Infrastructure: A Time for Transformation, Africa Development Forum. Washington, DC: World Bank.
Commission for Africa, 2015, Still Our Common Interests, March.
Gelb, A., and S. Grassman, 2010. “How Should Oil Exporters Spend Their Rents?” Working Paper 221, Center for Global Development, Washington, DC.
Grigoli, F., and J. Kapsoli, 2013. “Waste Not: The Efficiency of Health Expenditure in Emerging and Developing Countries.” IMF Working Paper 13/87, International Monetary Fund, Washington, DC.
International Monetary Fund, 2015, “Making Public Investment More Efficient”, Fiscal Affairs Department Policy Paper, Washington, DC.
Keefer, P., and S. Knack, 2007. “Boondoggles, Rent-Seeking and Political Checks and Balances: Public Investment under Unaccountable Governments.” Review of Economics and Statistics 89 (3): 566–72.
Adrian Peralta-Alav, Marina Mendes Tarvares, and Xuan S. Tam, 2017, The Distributional Implications of Fiscal Consolidation in Developing Countries, Manuscript.
Bollinger, Christopher R. and Barry T. Hirsch, 2013, “Is Earnings Nonresponse Ignorable?” Review of Economics and Statistics, May, 95(2): 407–416.
Bollinger, Christopher R. and Barry T. Hirsch, 2006, Match Bias from Earnings Imputation in the Current Population Survey: The Case of Imperfect Matching, Journal of Labor Economics, July, 24, 483-519.
Fabrizio, Stefania, David Furceri, Rodrigo Garcia-Verdu, Bin Grace li, Sandra V. Lizarazo, Marina Mendes Tavares, Futoshi Narita, and Adrian Peralta-Alva, 2017, Macro-Structural Policies and Income Inequality in Low-Income Developing Countries. SDN/17/01. January Institut National de la Statistique et de l’Analyse Economique, 2015, Enquete Modulaire Integree sur les Conditions de Vie des Menages. Octobre.
Medina, Leandro, Andrew Jonelis, and Mehmet Cangul, 20917, The Informal Economy in Sub-Saharan Africa: Size and Determinants, International Monetary Fund. WP/17/156 Tang, Xin, A Tutorial of the Toolkit for Solving a Multisector Heterogeneous Agents General Equilibrium Model, August. Manuscript.
Institut National de la Statistique et de l’Analyse Economique, 2015, Enquête Modulaire Intégrée sur les Conditions de Vie des Ménages. Octobre.
Nora Lustig, ed., Commitment to Equity Handbook: Estimating the Redistributive Impact of Fiscal Policy, The Brookings Institution and CEQ Institute/Tulane University, in progress.
Human Development Report 2016, UNDP, 2016.


- IMF International Monetary Fund
- Benin Wikipedia
- Benin official Government website

contact IBS by mail



Brasile e Infrastrutture


The following country profile underlines Brazil traditional aspects and it has been realised thanks to International Monetary Fund information.


Subsidies for Brazil infrastructures are lower than international standards, as well as the low quality of productivity, market efficiency and competitiveness. In order to increase the economic strength and boost growth, it is necessary to increase investments in infrastructures.



The zones in which Brazil competitiveness has decreased are, (but there are also other zones) education, innovation, governance and judiciary. Inadequate infrastructures do not allow to improve the insufficient productivity, stagnant exports, insufficient integration in the domestic market and the weak growth potential. The market segmentation due to the difference between relative prices can have important social and macroeconomic involvements. The incomes inequality can increase according to the market segmentation, for example for rural zones producers with a low income which are negatively influenced by difficulties in access to mass consumption markets. Several years of insufficient investments in infrastructures have contributed to decrease the potential growth.

Shed lights on infrastructures lacks to underline the increasing need bigger of investments in infrastructures

Investments in infrastructures are often seen as a strategy to promote domestic integration and exporters competitiveness. Following this logic, first we have to look at how infrastructures affect the domestic integration, analysing prices convergence in the main cities. After, using qualitative and quantitative indicators it will be possible to see in detail infrastructure lacks in every sector compared to current income levels in Brazil, infrastructures levels and Brazil competitors level in its export markets.
Subsequently, it will be documented the past infrastructure investment trends in Brazil and we will describe the body grant programme according to the most compelling infrastructure needs. In closing, we will talk about policies that may contribute to fill the infrastructure gap.

How much is Brazil integrated?


International data, using empirical approaches and considering CPI data, have shown few periods of price convergence halving in other countries. For China, the average convergence period between 1993 and 2003 (Li and Hung, 2006) was 2.4 months, for Canada between 1978 and 1994 was 5 months (Fan and Wei, 2006). Results for both countries show that more than 90% of shocking prices will disappear within 18 months, very faster than Brazil.

Brazil - Path of Price Convergence, Response Functions



Brazil ranked 120th on 144 countries examined by the World Economic Forum in 2014 for the overall quality of infrastructures. It had very low quality level in the transport sector and the third sector was worse than those of other countries examined. Brazil results were low in the last 10 years and they have worsen in the last 5 years. However in order to make a better comparison we chose some Brazil infrastructure benchmark and those of its main competitors for the export.

Brazil - Infrastructure Quality Indicators
Brazil - Infrastructure Quality Indicators 2

Brazil infrastructure overall quality is lower than almost everyone of its export competitors

Brazil levels of physical capital adequacy in every infrastructure of transport sector (roads, ports, railways and airplanes) are considerably lower than those of its main export competitors. Only electricity and telecommunications sectors have a better quality than some of its competitors. In this sectors Brazil has invested in the same way even more efficiently in the last years through a greater participation in the private sector. Yet, according to the Enterprise Survey 2010 by the World Bank electricity have been one of the main problems for 46% of Brazil companies (38% LAC) and 28% believes that transports are an important problem (23% LAC).

Energy indicators are less negative

Since 1980 electricity production and per capita consumption have more than doubled and the access to electricity is almost universal. However electricity transmission and distribution losses have increased and now they have exceeded 15% of electricity production.

Brazil - Electric power transmission and distribution losses

Infrastructure lacks In the transport system emphasize when qualitative and quantitative are indicators are connected to the totality of brazil means of transport

Brazil competitors rely more on railways for goods transport which is more suitable for greater goods amount and for prime materials with a low additional value. In Brazil, 60% of farming products are transported on roads and highways while the majority of iron is transported on railways (Credit Suisse 2013). Transport system is a problem for Brazil exports and competitiveness because of the quality of its roads.

Brazil - share of Good Transport

Airports and ports are limited and they have to be improved

In 2013 only Santos Port (Sao Paulo) was in the top 100 world’s ports at the 42 nd position, thanks to a 6.2% increase of throughput in 2012 (International Containerisation). Anecdotal evidence of problems in Brazil ports can easily be found, for example: according to Credit Suisse “There are 10 miles queue of lorries outside ports waiting to unload crops and 200 ships waiting to load goods”.
Yet, part of the increasing infrastructure gap is probably due to an inadequate maintenance and to an increased use, but the main cause is the extended period of inadequate investments compared with other countries.

Brazil infrastructure quality is below the average of countries with a similar GDP

In the period 2005-2010 the overall score of Brazil infrastructure have been lower than an average made by selecting countries according to their GDP per capita (PPP 2.005 $).
Among Brazil export competitors, only Argentina average was higher but the final result hides differences in every sector.
Brazil electricity supply and infrastructures have a high result. On the contrary, roads, railways, airport and ports quality is below the average. Roads and airports have the biggest problems.

Brazil - Infrastructure Quality and Income

Infrastructure investments trend

Infrastructure botttlenecks abovementioned are due to an extended period of scarce investments in infrastructures

In the early eighties, investments in infrastructures in Brazil have considerably decreased from an average of 5.2% of the GDP to 2% in the last two decades and slightly increased of 2% in 2013.
goods and data of standard infrastructure investments, for a comparison are not available, many data source confirm that for two decades investments in infrastructures haven’t been as adequate as those of Latin America and new emerging countries Chile, China and India ( Calderon and Serven, 2010; Frieschtak, 2013). Moreover there are many difference in investments in each sector. In particular, electricity and telecommunications sectors represent the biggest part of Brazil investments, especially because of private sector participation in the framework of granting concessions. On the contrary, Chile has invested more in roads, water distribution and supply and hygiene services.

Brazil - infrastructure Investment 1
Brazil - infrastructure Investment Average

The decrease of investments it is due to an investments decrease in public infrastructures

1988 Constitution has decreased the federal funds pools available for capital expenditure, because it has replaced sector specific federal taxes for energy, transport, telecommunications with non specific national-level taxes. It has also increased transfer to subnational governments, and it has used money for current public expenditures.
From 1999 the efforts for public accounts recovery has decreased the available fiscal space for public investments due to balance rigidity and current obligatory public expenditure.
As a consequence, since that period public expenditures allocated for infrastructure investments have always been inadequate, despite of initiatives in order to give priority to infrastructure investments. such as the Programa de Aceleração do Crescimento (PAC) started in 2007 by the federal government in order to boost the economy growth.
Currently almost 75% of the overall investments for public administrations is made at subnational level.

Meanwhile, private sector investments have filled the space left by the public sector

In the nineties, privatizations and grants have opened to private investments in key sectors such as telecommunications, energy and transport but private investments haven’t been sufficient to compensate for public investment lacks. Private participation in Brazil infrastructure sector have been lower than other Latin America countries, especially compared with Chile, giving relevance to the fact that investments in environment, included investment opportunities and regulatory and institutional frameworks, have a key role in determining investment levels in overall infrastructures, so they give the possibility to face infrastructure lacks.

Grants program role

Brazil aims to obtain grants in order to delete infrastructure lacks

Grants can bring competences and efficiency in private sector and also bypass some of the public investments challenges (such as contractor obstacles) boosting the investment process.
At the end of ninenties in Brazil there have started a first period of grants. Through privatizations, private sector become the main operator in energy, transports, railways and telecommunications sectors.
There have been grants for 5.000 km of federal roads. It is important to underline that this investments through grants in telecommunications and electricity have contributed to delete the infrastructure lacks and have improved Brazil rank in this areas, as mentioned before.

the current period of grants has started some years ago and it is focused on projects for infrastructure sectors in a critical situation, such as roads, ports and airports

During the period 2011-2014 there have been auctions for grants in the transport and energy sectors, with a total investment of around 183.4 billion R$, divided between airports (R$ 35,8 billion), ports (R$ 8,4 billion), roads (R$ 29.2 billion), urban transport (R$ 6,9 billion), energy production and supply (R$ 96,7 billion) and telecommunications (R $ 6,4 billion). Federal government plans include transport system projects ( roads, railways and ports) energy production and supply, urban transports and telecommunications with a total investment of R$ 109 billion (Secretaria de Acompanhamento Econômico, 2015). The grant period is between 20 to 35 years and the majority of infrastructure investments will take place in the first five years. It is foreseen that past and future grants will be 3 / 4% of the GDP of infrastructure investments per year in the period 2011-2017.
Offer delays and changes in contracts could decrease investments in the future. The infrastructure grant program could be affected by Petrobras corruption as well as many of the main construction companies. These companies could have a decreased accession to financing.

Fill the gap

The Brazil infrastructure gap affects the growth

In the last years, Brazil economy situation and its competitiveness have suffered from problems with the complex fiscal system, administration obstacles, judicial and bureaucracy inefficiencies, the inadequate regulatory framework, called “custo Brasil”.
Infrastructure bottlenecks are not considered part of this “soft” burden, because of the capacity of attract companies, which is one of the biggest restrictions to the increase of the potential growth.
Infrastructures are not suitable for the current revenue levels, to support regional integration and to make Brazil more competitive than its competitors for the main export products.

In order to fill the gap there will be necessary an increase in investments but also the intensification of other reforms

In the last ten years, the infrastructure gap has increased because of scarce public investments and stagnant private investments in every sector. The government grant program can intensify and boost infrastructure investments but it couldn’t be enough to considerably boost potential growth. Other reforms to delete “soft” bottlenecks, included reforms to improve governance standards, will have to support efforts to fill the infrastructure gap to make the business framework more attractive for foreign and national investments. Moreover the regional competitiveness must be intensified to attract investments.


International Monetary Fund http://www.imf.org/external/index.htm


- Translation and arrangments by Lleana Bonfardeci
- Translation by Matteo Gaipa

Brazil economy is slowing down

Brazil economy is slowing down



Author: Elisa Mariani
Translated by: Lorenzo Giusepponi
September 2016

During the last decades, thanks to the policies adopted in order to maintain institutional balance and face the excessive increase of inflation rate registered in the 1990s, Brazil has become one of the major emerging countries and a favorite destination for foreign investments.

Its economic growth has also been eased by the country’s entry in Mercosur, South America common market, founded in 1991, whose member states are Brazil, Uruguay, Paraguay, Argentina and Venezuela.
Thanks to this organization, the free movement of goods and services has been possible and the purchasing power of member states in relation to non members has been strengthened.
In the Mercosur founding treaty, signed in Asunción, the member states agreed to respect the environment, human rights, democracy and the fight against poverty, as a demonstration of a significant ethic commitment.

In addition, the country stood out as a highly appealing power for its industrial development, above all in the oil, infrastructures, tourism, renewable energies, convenience goods, chemical and cosmetics sectors.

Brazil main row materials are coffee, cotton, grain, sugar and nickel. The mainstay of Brazilian economy is manufacturing, representing 70% of exportations. The service sector is the most important as it accounts for 38.5% of production, followed by industry at 31.9% and agriculture at 29.6%.

In Brazil, which is a developed country, wealth is not well distributed among the population, with consequent large economic and social inequalities that affect the major part of the population. Current unemployment rate is at 11.3% against 7.4% of July 2012, a fact that should be taken into consideration together with the 4 million people demographic increase registered in the last four years.

At the same time Brazil is important at international level because of its membership to the BRICS group (Brazil, Russia, India, China, South Africa), economically emerging countries which have seen different development processes. The Brazilian economic boom took place from 2001 onwards, when the index of revenue concentration, which on average was between 0.23 and 0.45, reached 0.553, one of the highest ever registered at global level.

Also, in 2001 Brazil middle class saw an increase of 30 million people, which shows the prosperity of that period. However, during the last years Brazil economy has seen a gradual downturn as data about Purchasing Power Parity GDP demonstrate. In fact, in 1978 Brazil GDP was at 12.1%, not much below China’s (12.9%), but in 2013 the difference between the two countries significantly broadened with a 12.6% GDP for Brazil against China 90.1% GDP.

Such economic stall is mainly caused by four factors: the high lending interest rate, which is around 10%, the fluctuation in the price of raw materials, insufficient investments in the Research & Development sector and the policies carried on by Lula da Silva and Dilma Rousseff administrations that aimed to keep stability and that turned out to be generally unsuccessful.

Politicians have thought that the solution to the problem of economic growth was to encourage the demand, ignoring the possibility of betting in investments to help the country. However, there are also positive data given by the press agency Agencia Brasil, which has registered an increase of 20 million people in the highest consumption level, a first step in the growth of domestic demand.

So, in spite of showing a downturn in economic growth, Brazil is still a highly appealing country for its business opportunities.

Source: “Brasile: l’attrattività nonostante il rallentamento economico” (Brazil: still appealing despite economic downturn)

- www.limesonline.com
- www.nuvole.it
- www.brasileira.it





Author : Lorenzo Giusepponi
November 2017

On June 23, 2016, a slight majority of the British electorate ( 51.9 percent ) – going against the predictions of pollsters and politicians – voted to leave the European Union. As soon as the referendum result emerged, the pound started wilting. David Cameron resigned and his colleague Theresa May became prime minister. While panic was spreading, the Bank of England was forced to take action in order to stabilize the situation with promises of liquidity for the banking system. As things stand, the UK will leave the EU on March 29, 2019. So, one year after Brexit, what has the effect actually been, up to now, on the economy ?

The broader economy

During the night of the decision, the pound suffered its biggest one-day downturn against the dollar, hitting the lowest in 31 years. Today, one pound is the equivalent of $ 1.33. However, exporters are currently benefiting from a weaker pound and no change to tariffs to the EU.

brexit sterling plummets

The deal that the British government will manage to make in the near future may affect the country’s economy. The devaluation is a benefit for British exporters, but this implies an increase in the cost of imports, which is the reason inflation is now rising faster than workers’ salaries, leading to a reduction of living standards. Business investment has also suffered since the referendum, as firms are uncertain about the UK ’s future trade agreements with the EU and the threat of tariffs and customs barriers.

British consumers proved unexpectedly resilient after the referendum, such resilience allowed the GDP to grow, avoiding a recession. The economy actually grew by 0.7 percent in the last quarter of 2017. Yet, since the turn of the year, there have been distinct signs of shoppers discouragement as inflation is increasing, reaching 2.9 percent in May. Retail sales, a very important component of consumption, decreased by 1.4 percent in the first quarter of 2017.

Banking and financial services

Richard Gnodde, the chief executive of Goldman Sachs European branch, said that the American bank, which currently employs around 6,000 people in London, would relocate hundreds of staff out of the city even before any deal is made, as part of his contingency plan. Others have already taken more drastic actions. Transferwise, one of the biggest European fintech firms, said that it will move its European headquarters from London to continental Europe by March 2019 with the aim of keeping access to the single market.

Auto industry

The car industry is often highly exposed, because of its integrated EU supply chains and its dependence on foreign workers, therefore it is considered one of the sectors most vulnerable to an exit from the single market. Britain moving to a World Trade Organization tariffs regime could lead to the introduction of a 10 percent tariff on finished vehicles. In March, a study carried out by PA Consulting demonstrated that if manufacturers pass these costs directly on to customers – and taking into consideration all the steps of production – the price of a new vehicle could soar by £ 2,372 per car.

Construction and manufacturing

Like the auto industry, the construction and manufacturing sectors stand to lose a lot, especially if Brexit limits the free movement of labour. In a report published in March, the Royal Institution of Chartered Surveyors stated that almost 200,000 jobs in these sectors could be lost if Britain is denied access to the European single market. The British Chambers of Commerce and the Confederation of British Industry have starkly warned about the potential effect of Brexit on certain industries. Around 117,000 EU citizens left the UK in 2016, an increase of 31,000 compared to 2015 and the highest estimate ever observed since 2009.

Food and beverage

More than half of the food eaten in the UK is imported, which means that the post-Brexit devaluation of the pound has been squeezing the food and beverage industries. Costs have been increasing for suppliers and that is being passed on to consumers, while supermarkets aim to keep prices as low as possible to protect profits.

What people in the UK think about Brexit

Joe Twyman from pollsters YouGov says that in general, people haven’t changed their mind from how they voted last year. A curious fact is that 26 % of the population that voted Remain believe the UK should go ahead with Brexit, because the majority voted favorably, he affirms. However, he adds that the political situation is “very fluid”, and depending on how the negotiations go, such opinions may easily change.

The negotiations between the UK and the EU

Negotiations between the UK and Europe have already got underway and will proceed for most of the next decade. Britain may achieve a “ partially attached ” status, like Norway and Switzerland, or negotiate a unique agreement, but few policies are likely to change, and those that do will favor Europe, not the UK. These predictions stem from an analysis of two important factors that, according to political scientists, affect global economic and political issues : interdependence and influence.

The European Union is built around a single market with shared regulations. Other policies, such as the Euro, collective defense, the free movement of goods, services, capital and labour within the Schengen zone, homeland security and external immigration are optional. British leaders are tempted to select policies, keeping only those they agree with. The UK has proposed to take back the control of fisheries, agriculture, foreign trade and especially immigration policies, where it feels disadvantaged. Europe, naturally, will not let Britain treat such policies as optional. So, the first reason Brexit is unlikely to generate further political changes is that, although the UK has refused most EU policies for a long time, it is deeply connected to Europe on those it adopted. Britain needs the European Union’s liberal rules because it benefits from them: It needs European countries to ensure access for its exporters, service providers and educated people. Britain is unlikely to extract many concessions from a far larger Europe on which it is asymmetrically dependent. Almost half of British exports go to Europe : They account for 13 percent of British GDP, while European exports to Britain only account for 4 percent of European GDP . Secondly, the rapid ratification of trade agreements with non-European countries to strengthen the British bargaining power, suggested by some conservatives, would be rather ineffective, as these trade agreements generally take a decade or more to be negotiated, and Britain alone is so weak that it is unlikely to wield more influence on the United States or China than on the European Union .

brexit export of goods Britain and EU

Britain is in a difficult negotiating position: Its economy and security are too deeply related with Europe and its global bargaining power too limited. In theory, Britain could carry out its threat to leave the European Union, but in practice, more will remain the same than will change.


- www.indipendent.co.uk
- www.washingtonpost.com
- www.bbc.co.uk
- www.theguardian.com
- www.economist.com
- www.cityam.com



Ghana Accra scheda paese - Country Profile


Official Name: Republic of Ghana
Area: abt 240,000 km2
Population: abt 26 million esteemed
GDP growth esteemed in 1014: 7.5%
GDP pro-capita: abt 2,000 USD (world economic outlook database 2013)
Capital: Accra 2,269 mln (CIA World Factbook)
State: unitary state, independent from the United Kingdom from the 6th of March 1957
Government: Unitary presidential constitutional republic, the head of the State is also the head of the Government.
Religion: Christian 69%, Muslim 16%, Animist 15%
Languages: English (official language), other local languages
Currency: New Ghanaian Cedi (GHS); 1 € = 2.54 GHS (10.04.2013)


- Agriculture 24.6%
- Industrial sector 27.5%
- Services 47.9%


The construction sector is growing considerably (9.2% of the GP – source: African Economic Outlook 2013) because the housing needs are not satisfied by the quantity of the available residential units.
Bank of Ghana estimations highlight a need for 1.5 million affordable homes (social housing projects, meaning real estate development projects funded by national or international institutions).
The main obstacle to the sale of real estates concerns the access to credit.
There is a positive response to the made-in-Italy; over the last 10 years, the property market registered transactions worth an estimated value of about 2 billion USD.
Among the private entities, one organisation that plays an important role in the real estate development of the country is Ghana Real Estate Developers Association (GREDA).
This country has an urgent need for infrastructures (roads, drainage systems, water mains, agricultural drainage, industrial plants, port facilities) and for the maintenance of the few ones already existing.
The local productivity (especially concrete and building materials) can guarantee high profit margins; the furniture industry follows the fast progression not only of the housing sector but also of the civil construction, which is linked to services (offices, shopping centres, tourist facilities, shops, showrooms..).
Agriculture is an extremely important sector for Ghana’s economy and it constitutes 23% of the country GDP; The main products of Ghana’s agriculture are cocoa, rice, coffee, sugar, tropical fruit palm oil, peanuts, tobacco.
Aiming to produce 10% of the energy from renewable sources, the government supports the production of fuel for biodiesel engines (for example jatropha seeds, Brong Ahafo region).


Company typology: Sole proprietorship, Partnership, Company Limited by shares, Company limited by guarantees, External company (branch), Companies Code;
The current legislation in Ghana requires the presence of one local partner only to the companies that operate in the mining sector.
The minimum investment required for every foreign member in a company under Ghanaian law is:
• USD 10,000.00 if the joint venture is mixed, i.e. composed of both foreign and Ghanaian members
• USD 50,000.00 if the joint venture corporate in Ghana is 100% composed of foreign members;
• USD 300,000.00 for the registration of companies that operate mere trading activities.


The income tax rate on legal persons is fixed at 25%, the dividend payment to local or foreign partners is subject to a rate of 8%;
If a foreign operator works in Ghana through a branch, the neat revenue is subject to a further 10% deduction;
There are tax incentives for free-zone companies (ten-year exemptions and application of a reduced 8% tax rate), for companies that deal with the processing of agricultural products (adjusted rates that can be up to 20% depending on the company’s locationing) and waste disposal (rate discounts up to 50%);
Repatriation of profits: non-resident people doing business in Ghana through a stable organization can repatriate their profits paying a 10% tax.


Mixed system including Common law and Customary law;
The judicial system bodies are: Supreme Court, High Court, Court of Appeal, Regional Tribunals.


The Convention for the avoidance of double taxation concerning income tax and the prevention of tax evasion was signed on the 19.02.2004;
Agreement to avoid double taxation on incomes deriving from air and maritime navigation (signed in Accra on the 23.08.1968 and entered into force on the 24.03.1977, with exchange of notes done on the 30.06.1972 in order to determine its retroactivity up to the 01.01.1961);
Ghana ratified the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.


SACE insurability conditions: no conditions for private and baking risk; conditions for sovereign risk.

Country Profile Morocco

Marocco Scheda Paese - Country Profile


Country Code: (204), MA
Capital: Rabat
Government: Unitary parliamentary constitutional monarchy
Total Area: 710.850 km²
Population: 33 million
Time Zone: UTC +0 (UTC+1 in summer)
Currency: Moroccan diraham, MAD
Languages: Moroccan Arabic and Amazigh (official), French, Spanish and English
GDP: 835 billion MAD (2012), about 75 billion EUR
GDP (per Capita): 25,681MAD (2012), about 2,300 EUR
HDI: 4.9% growth (in the last five years)
Distribution of GDP (2011): 12.7% Agriculture, 28.1% Manufacturing, 59.2% services, 1.3% Inflation rate (2012)


In the last 10 years Morocco moved with the time and became a really attractive country for investors:
- Solid Macroeconomics Bases
- Government Development Plans to improve Manufacturing, Agriculture and Services and to support the Private Sector
- Infrastructures as Development Axis
- Stable and Safe Country
- Ideal position to serve Europe, Africa and Americas
- Competitive Labour Cost
- Free Trade Agreements
- Advantageous Contest for Business
- Direct Involvement of the Governmental Institutions
- Interesting Subsidies for Investors
- Free Zone Areas – Solid Bank System

Morocco combines four determining factors of strategic appeal and long term for investors

• Ideal position to serve Europe, Africa and Americas
• Competitive Labour Cost
• Free Trade Agreements with access to about 1 billion of users (Europe, Africa, Nord America)
• Advantageous Contest for Business


Moroccan Government has set the development of the foreign investments as absolutely priority in order to serve the local market as well as Europe, Africa and Nord America:

• Direct Involvement of the Government to attract and support Foreign Investors
• Interesting ways of subsidies for investors, including co-financing the big projects (CAPEX; areas, trainings…)
• Free Zone Areas, with administrative, fiscal and social benefits
• Solid Bank System, which includes the local Businesses who are improving their presence internationally through a high presence in Africa

Free Trade Zone accordi libero scambio marocco

International Infrastructures

For about 10 years Morocco has been launching programs to improve their own infrastructures internationally. In 2007 the Tangeri Med harbour has been launched. This harbour can contain 3 million containers. The streets and the highways, as well as the railways and the airports, are going to follow a plan of innovation and extension. From an industrial and logistic point of view, the integrated platforms and free economic zones have been improved. A free economic zone will be in Casablanca and from there the Moroccan economy could be relaunched, making easier the logistic and the international exchanges in comparison to Tangeri.


Open a company in MOROCCO is extremely easy. Due to the easy commercial and social laws, all the folders are centralized in the INVESTORS REGIONAL CENTERS; the most common type of company in MOROCCO is the SARL and the similar SA. SARL can be for a single member (SARL AU) or for more members. Other types of company, such as LIMITED PARTNERSHIPS or JOINT-STOCK COMPANIES, are uncommon.
Joint Ventures or Economic Interest Groups are going to be build in case of investment or relevant projects. The type of company depends on the type of activity, investment and the credit line. A minimal capital for the SARL and the SALR AU doesn’t exist any more. So the investment for the begin is minimum. According to Art.46 modified from the law no. 24-10, the capital of the LLC is decided from the members during the draft of the Statute; the social capital is divided into social part with equal nominal value. The social statutes state the subdivision of the social parts.

Negative Certificate :

After having decided the sector and the type for the company, the company needs a name and the first step is to obtain a negative certificate, a document that states that there are no other companies with the same name. This document can be obtained from a regional center for the investment, connected to the Moroccan Office for Industrial and Commercial propriety.

The Statute

Regarding to the Statute, it is recommended to extend the social object of your investment as more as possible.

WHICH ADDED VALUE CAN IBS International Business Strategy GIVE IN MOROCCO ?

IBS has an operation headquarter in Morocco, Moroc Business Strategies SARL. This means that we can give you all the informations you need about this country and more specialized services listed underneath. More over, thanks to our Logistic Department, we can organize the creation of a Commercial and Distributive Network direct in this country:

• Market Research • Entrepreneurial Opportunities
• Customers and/or Suppliers Research
• Business Consultancy
• Legal Information
• Customs Consultancy
• Bureaucratic Procedures
• Business Organization and Strategy
• Business Creation and Management
• Accounting Consultancy
• Goods Transfert
• Shipping Logistics
• Assisted Marketing and Finance in Morocco
• Business Planning
• Specialist Reporting
• Information about the Bank and Financial System

Morocco Business Strategies

Maroc Business Strategies Morocco Marocco mappa 2


- The exportation of goods from Italy or EU countries to Morocco.
- The exportation of goods from Morocco to Italy and/or EU countries with which Morocco has signed preferential agreements on the free movement of goods and services.

- Market research, feasibility studies of exports or FDI (Foreign Direct Investment) initiatives in Morocco.
- Search for partners, customers, suppliers, and scouting of business opportunities.
- Launch and promotion of a brand in Morocco, strategic marketing and marketing plans.
- Creation of a local office or of a showroom for the promotion of goods and services in Morocco, either in our own commercial areas or in commercial areas we manage through local partners.

- Customs, fiscal, legal and accounting support services for export and FDI activities.
- Processing of bureaucratic procedures to create a local office or to make an FDI.
- Business planning.
- Search for tenders and assistance in the presentation of a project and obtaining financing.
- Search for state incentives or funds via the EU’s European Neighbourhood Policy agreements, grants, assistance for facilitated financing for Morocco.
- Industry specialists headhunting.
- Assistance with banking or finance operations where it is important to have the support of a local bank in Morocco.
- Search for private financiers.

- Business strategy.
- Outsourced sales management in Morocco.
- Human resource organisation, Human resource policies, payroll, labour law.

- Processing of the transfer of goods, logistics, and shipping.
- Creation of a direct MBS sales and distribution network in the country.
- Support to logistics operators who are willing to create a logistics hub for the distribution of goods in Morocco.


- Red algae, green algae, sea cucumbers, tuna, sardines, mackerel.
- Craft products (e.g. leather, terracotta, other).
- Phosphates and their derivatives.
- USDA and ECOCERT certified organic argan oil.
- Pellets.
- Agricultural products (Moroccan olive oil, olives, tomatoes for the agricultural-food industry, pine nuts, walnuts, hazelnuts, saffron threads).


Morocco is a country whose economic, financial, banking and political systems are stable; it is the natural gateway to the African continent, the MENA countries (Middle East, North Africa) and Sub-Saharan Africa. For several years, Morocco has seen a constant increase in the GDP and GDP per capita and the middle class now includes parts of population who were once below the poverty threshold. The GDP growth forecasts for the following years are positive and not less than 5% per year, for at least the next 5-6 years. Therefore, the country is considered extremely interesting by the EU, the USA and Asian countries.
The European Union has a preferential free-trade agreement with Morocco which is currently in force, resulting in the removal of customs duties and barriers to entry for the EU member states. Morocco has signed similar agreements with the United States and, obviously, with African countries. Thus, the country is also an interesting international logistics hub for the United States and for Asian countries.
Incentives and state financing are provided for businesses which are interested in Morocco; further funding is provided as a result of EU neighbourhood policies or agreements with Development banks. Below you can find a list of some sectors where the number of business opportunities is higher.


abbigliamento e arredamento in marocco

- Designer clothes, popular brands.
- Quality products (e.g. quality doors, window and door frames).
- Leather goods, jewellery, ceramic products, and craft products.


architetti italiani associati in marocco per opere costruzioni e appalti pubblici

- Assistance with the validation of the Italian degree in Architecture or equivalent qualifications in Morocco.
-Enrolment in the national register of architects.
- Support in the start-up stage of business and with the profession at an associated architects’ firm.
- Scouting for professional opportunities: tenders, opportunities in the private construction sector.
Once the file is closed, it will be possible to carry out most of the professional activities from Italy thanks to the Assistance we and the local partners give.


ricambi auto e consumabili auto marocco

- Consumables and spare parts for cars.


call center in marocco inbound o outbound

- Call centres outsourcing, both inbound and outbound, for Italian businesses by qualified and trained personnel who have excellent telephone conversation and negotiation skills, as well as a perfect command of Italian.


construction ed energia in marocco

- Construction, designing and execution of building works in the civil field and in the public works field in the context of international tenders. At present, in Morocco, there are a significant number of active construction sites everywhere, both in the private and the public sector. The works in the former have the objective of gradually reducing the pockets of poverty, whereas in the latter the government aims to modernise the country and its international connections to foster foreign trade and the strategic role of the country in the development of the African continent.
- For the private investors who wish to invest in real estate, interesting opportunities can be found in the areas of Agadir, Essaouira, Fes, Marrakesh, Tangier.
- Renewable energy and energy saving: PV panels, accumulators and photovoltaic systems, solar panels, wind turbines and biomass heating systems.
- Morocco has set the ambitious goal of producing a 42% of green energy (i.e. energy produced from renewable sources) by 2020. At the moment, the country primarily uses coal and oil, but depends heavily on imports for over 90% of its requirements.
- Therefore, also thanks to the great interest shown by the highest authorities and political officers on the matter, Morocco aims to radically change its energy mix by increasing its renewable energy production capacity by 4000 MWh.
- Gas for domestic use: the distribution of gas for domestic use is a significant issue in Morocco. Indeed, most consumers use gas cylinders both at home and in other industries (restaurant, hospitality).


food and beverage da esportare in marocco

- Good quality water with a low amount of nitrate and dry residue.
- Good quality wines for high-end restaurants, made in Italy, Spain and South America.
- Non-perishable foods, canned foods.
- Halal certified meat (this certification guarantees that the food is prepared in accordance with the Islamic law).
- Different types of food supplements.



- Training for managers in the areas of Human Resources, Logistics, Management Control.
- For the catering industry and for hi-end hospitality services: training and subsequent auditing by an Italian Certification Authority in order to eliminate all non-conformance and danger for consumers or guests of contracting viruses or bacteria because of methods or procedures of handling of foods and beverages which do not comply with HACCP requirements nor with the Italian UNI 10854 regulations.


idraulica e rubinetteria di qualita marocco

- Quality taps, fittings and accessories.


cliniche private consumabili ospedalieri in marocco

In the hospital sector, considering the transformation which the healthcare system is undergoing, passing from a 100% public system to a mixed system open to private investment and management of hospital units, there is a high demand for hospital consumables, medical equipment, analytical and medical devices (including hi-tech items). Here are some examples:
- Cytology and preparation: microbiology kits, powders, reagents, stains, histopathology kits.
- Disposables and gloves: cassettes for biopsies and embedding, Lab markers, biopsy sponges, disposable gloves.
- Reagents and products for histology.
- Vaginal and nasal specula.
- Disposable latex pressure infusion bags.
- Products for sutures and dressings.
- Microscope cover slides and cover slips.
- Needles and needle holders.
- Disinfection and sterilisation products.
- Bags.
- Operating room shoes, shoes for medical and paramedical personnel.
- Scrub top and trousers.
- Disposable sterile surgical gowns.
- Safety glasses and medical face shields.
- Diagnostic products and devices.
- Medical equipment for general and specialised surgery.
- Digital devices, hardware components, and hospital information systems, cameras, monitors, printers.
- Stainless steel medical furniture, operating room accessories, operating room tables, and medical trolleys.


produzione televisiva HD spot corsi operatori audio video in marocco

- Training services via highly qualified personnel specialised in audio and video production for TV networks.
- Courses for audio and video operators, sound and microphone technicians, film editors, stage electricians.
- TV commercial production, mobile control rooms.
All of the above-mentioned services are offered by an Italian company which operates in the audio and video production industry.


antipirateria navale protezione cantieri scorta armata

- Advanced technologies supplied by an Italian company which operates in the military sector. This company also provides embedded systems and turnkey platforms for the telecommunication and military industries.
- Naval anti-piracy services by highly trained personnel who have had important roles in the coordination of military operations in hostile zones.
- Protection of construction sites, buildings and production plants which are located in hot spots or areas subject to popular uprisings or with an ongoing civil war.
- Armed escort for entrepreneurs, managers, politicians, VIPs.



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Micro Credit Project and Human Development in Morocco

Micro credito e sviluppo umano in marocco

Micro Credit Project and Human Development in Morocco

National Initiative for Human Development in Morocco (NIHD)

The National Initiative for Human Development in Morocco comes from a vision of economic and social development gained by the royal family, and was presented by His Majesty King Mohammed VI currently reigning, May 18, 2005. This initiative is thus part of a global vision based on three components objectives:

• political process of consolidation of the modern state: democracy, rule of law, promoting the rights of women and children;
• Reforms and structural projects to generate growth;
• Human development in its economic, social and cultural development, based on the principles of good governance through information, monitoring and accountability.
The initiative is therefore based on a global and integrated vision of social development, the objective of human being, in order to combat the social deficits that continue to afflict society and lay the foundation for a harmonious development between urban and rural.

It also seeks to enhance the action of the State Government and local authorities, without replacing the sectoral programs or plans for economic and social development of local communities.
To this end, provides a potential in additional funding, to support actions to support permanent, able to bring faster results and produce dynamics in human development of appreciable level.

She started as a central priority of economic and social policy of the country in the fight against poverty, social exclusion and precariousness, deciding strategy as a decentralized approach based on geographic targeting the poorest and most disadvantaged groups in society, on the principles of participation of beneficiary populations, strategic planning, collaboration with local stakeholders to ensure greater ownership and feasibility of projects and interventions and their convergence with the sectoral programs.

For the period 2006-2010 (NIHD) will be divided into four programs listed below

The transversal program

The transversal program aims on the one hand, support for projects with significant impact on human development through all the prefectures, prefectures and provinces of the Kingdom of the district, particularly in rural municipalities, the deprived urban areas, according to a procedure call to present driven projects at the provincial or prefectural level and on the other hand, support for job placement by dell’INDH at the regional level for training / capacity building, technical assistance, communication, evaluation, support to the Divisions of action social (DAS) and associations of municipal and district (EAC / Q) and support to associations of micro-credit.

Programme for the fight against insecurity

Piloted at the regional level, the program of fight against insecurity is designed for individuals marginalized and extremely vulnerable with the aim of:

• To encourage as much as possible the family reintegration of excluded people;
• Improve the quality of services offered to associations and public institutions to achieve quality standards that guarantee the respect of human dignity now;
• Build capacity and potential additional host where this is necessary.

The program to combat social exclusion in urban areas

This program involving more than 264 of the most disadvantaged neighborhoods in the big cities, aims to reduce social exclusion and poverty alleviation poorest communities by improving living conditions and strengthen social inclusion. The measures envisaged in this regard dall’INDH are grouped under four headings:

• Support for access to local services and facilities to the urban core (education, health, road, water and sanitation, etc.).
• Development of the local economy for income-generating activities;
• Support action and animation social, cultural and sporting activities;
• Strengthening governance and building local capacity.

The program to combat poverty in rural areas (Rural Tourism Development Project)

The program to combat poverty in rural areas covers 403 rural municipalities among those that have a poverty rate higher than or close to 30%, according to the paper published in poverty in 2004 by the High Commissioner in charge of the Plan (NIHD).

This program aims to improve human development in these communities, particularly through the following actions:

• Support access to basic infrastructure, equipment and basic social services for people in precarious situations (civil society)
• The development of the local economy for income-generating activities and employment;
• The support for the action and animation in social, cultural and sporting activities,
• Capacity building and local potential;
• In additional to the above programs, is provided for the commitment of expenditure to support the agency in support of the program (NIHD).

The analysis in each category must be refined to more accurately determine the needs of people, the degrees of uncertainty and to develop high-performance multi-sectoral programs.
The institutional and regulatory framework that governs the NIHD, innovative and ambitious initiative, is designed to ensure a work placement in accordance with the procedures that ensure transparency, agility and speed, giving a pivotal role to the regional committees, prefectural, county and local, and oriented management for contracting based on the results.

In this regard, about trust management, recipes and expenses pertaining all’INDH fall within the framework of a special account entitled (“Provision of support for the National Human Development”) created by decree, and that the ‘officer is the Prime Minister. Similarly, the mechanisms that ensure the regularity, transparency and speed of execution of the commitment and expenditure have also been provided.

A loan agreement was signed on December 15, 2006 between the Governments of the Kingdom of Morocco and the World Bank. It’s about helping finance dell’INDH in the amount of 78.9 million euros, equivalent to $ 100 million. This Agreement entered into force on 8 febbraio2007. For its part, the European Union has given a gift to Morocco 60 million, in the framework of the National Program from 2007 to 2010 and refinanced until 2020.

Actors interested in the program (NIHD)

Many actors can intervene in the development of the program (NIHD):

Associations and Unions, Elected local, external companies, local authorities, universities, the private sector, technical and financial partners.
Of all the actors mentioned, associations and cooperatives occupy a central place because the funding of projects NIHD must pass by them.

Procedural framework

The organization dell’INDH is based on a set of texts (circulars, ministerial notes of the Minister of the Interior, ordinances, decrees) as well as of 6 procedures manuals dedicated to:
• Procedures of income-generating activities (AGR);
• procedures of the program for the fight against poverty in the rural sector;
• procedures of the program to combat social exclusion in urban areas;
• procedures of the program to combat insecurity
• procedures for “call for projects” of the transversal program, fiduciary procedures.

Assessment methods

The lack of the following tends to penalize the ex-ante evaluation and design have been incorporated specifically by the World Bank:

• Lack of information on project monitoring, operation of infrastructure;
• Lack of information on the impact of the projects;
• Lack of mechanisms that allow recipients to give their opinion on the project, their use and their satisfaction;
• the specific provisions relating to the component of vulnerability is not present;
• the system of advertising, web-based, partially operational;
• the absence of further development of the projects after their completion.

Bodies external evaluation

Independent body established by the head of government and created in 2008, the National Observatory of Human Development (ONDH), has the mission to the permanent analyze and evaluate the impact of human development programs put in place and to propose measures and actions that contribute to the development and placement in work of a national strategy for human development, particularly within the framework of the initiative to the National human Development; the board shall submit annually to the appreciation of His Majesty the King a report on human development.

In addition, the Inspectorate General of Finance, IGF, and the Inspectorate General of territorial administration (IGAT) have been appointed by the government to jointly pursue the external auditing.

Participatory and inclusive processes

Participation is a central axis of the philosophy dell’INDH, his appreciation is however very difficult in the absence of comprehensive assessment available but also because of the many aspects that encompasses: information, training, consultation, taking into account the views, return of results, evaluation of participation, gender, communication, mediation, management of proximity communication with the people, the presenters of projects and in general all the local actors, is an essential element of the participatory process started.

To meet this requirement, communication programs have been assigned to the DAS, which have drawn up plans for local communication. In addition to corporate communication, many communication actions proximity have been put in place, such as, caravans, billboards, leaflets, meetings news, websites, radio and television programs.