• One of the biggest challenges of investing in Algeria has been the bureaucratic and time-consuming business registration process. Despite being a country with enormous potential for economic growth, Algeria has struggled to attract investors due to its complex business environment. The World Bank’s ease of doing business report ranks Algeria at an unimpressive 157th out of 190 countries. However, the Algerian government’s recent efforts to improve the investment climate, such as the new decree 23-169 dated 24th April 2023 to simplify company registration, are a step in the right direction.
• The primary challenge for entrepreneurs and investors in Algeria has been the lengthy process of obtaining the necessary documents and completing the forms required for business registration. This process involves 11 procedures and takes an average of 25 days, according to the World Bank report. These procedures include, among others, obtaining approval from the Ministry of Commerce and registering with the National Social Security Fund.
• The new decree aims to reduce bureaucratic hurdles and simplify the process of business registration in Algeria. One of the notable improvements in the decree is the
introduction of electronic systems (portals), which will simplify the process, reduce waiting times, and prevent document loss. The National Center for Commerce Registry (CNRC) supervises the portal in collaboration with the National Social Security Fund (CNAS), the National Health Insurance Fund for Self-Employed
Individuals (CASNOS), and the National Statistics Office (ONS).
• In other words, CNRC and other government agencies are committed to quick processing times. Within three days of submitting a registration request, applicants can expect confirmation and acceptance and important documents like a registry extract, tax identification number, and affiliation to national social security funds. With the implementation of this efficient system, entrepreneurs in Algeriacan now easily take the first step toward establishing their businesses. After the official journal publication, the involved administrations have six months to comply with the regulations.
• The new decree is expected to significantly improve the business climate in Algeria and attract more investors, resulting in economic growth and job creation. The simplified registration process is expected to have a positive impact on the private sector’s development, enabling more individuals and companies to access financing and expand their operations. Nevertheless, critics argue that the new decree may not be enough to attract significant investments and improve the overall business climate. They highlight the need for deeper structural reforms and increased transparency in the public sector to create an enabling environment for business growth and development.
Reference:
World Bank. (2021). Doing Business 2021: Algeria.
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World Bank. (2021). Enterprise Surveys.
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