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The renewed confidence and optimism of Algerian business leaders, particularly with regard to the country’s economic growth, were highlighted this Tuesday during the first edition of “Algeria” of the Global CEO study Survey” from the consulting firm PwC.
Thus, 90% of business leaders surveyed expressed optimism about the growth prospects of the Algerian economy over the next 12 months, according to the study.
The study conducted by PwC, partner of the World Economic Forum in Davos, also shows that 87% of Algerian business leaders say they are confident in the ability of their companies to achieve growth over the next three years.
Asked about the risks to which businesses will be exposed, 68% of business leaders surveyed identified inflation as a major risk, while 51% of managers consider themselves exposed to risks related to cyber security.
To face these challenges in particular, 55% of managers plan a major transformation of their business model within ten years, as part of the modernization of their companies.
According to the study, three main actions have impacted the transformation of the business models of Algerian companies over the last five years: the development of new products/services, the adoption of new technologies and the formation of new strategic partnerships.
Furthermore, the study noted the involvement of companies in the fight against climate change by notably reinventing their operational processes. Thus, 56% of business leaders say they have initiated actions to improve their energy efficiency at the company level and 47% of them plan to innovate in new environmentally friendly products.
When it comes to new technologies being adopted, 49% believe generative AI will “significantly” change the way their companies create, deliver and capture value.
Note that during this meeting, four panels were organized with the participation of the ministers present, around the themes “Mining and steelmaking”, “Renewable energies”, “Digital and artificial intelligence” and “Investment and export”.
The CEO Survey is a survey that surveys leaders around the world on their visions regarding various themes such as growth, trust, transformation, the challenges faced by companies, as well as the challenges of tomorrow. During this 27th edition of the study, PwC surveyed 4,700 business leaders from October 4 to November 11, 2023 in 105 countries, including Algeria.
The study presentation ceremony was held in the presence of the Minister of Energy and Mines, Mohamed Arkab, the Minister of Industry and Pharmaceutical Production, Ali Aoun, the Minister of Finance, Laaziz Faid, the president of the Algerian Economic Renewal Council (CREA), Kamel Moula, the president of the National Union of Public Entrepreneurs (UNEP), Charaf Eddine Amara and several CEOs of public and private companies.
Production of 40 Terawatts of green hydrogen by 2040
The Minister of Energy and Mines, Mohamed Arkab, revealed that the Sonatrach Group will produce 40 Terawatt of Green hydrogen in 2040. Arkab indicated that this project is part of the long decarbonization process and the future model energy.
Also present, the CEO of Sonatrach, Rachid Hachichi, affirms that “the production of green energies, such as hydrogen, constitutes a challenge which will be achieved within the framework of several partnerships” particularly, he specifies, in terms of investment and financing.
For his part, Finance Minister Laaziz Faïd indicated that “the PWC survey truly reflects the investment potential in Algeria and the achievements of Algerian business leaders. This climate of trust is not the result of chance. It testifies to the good health of the Algerian economy.”
Highlighting updated figures, the Minister of Finance recalled that the country achieved a growth rate of 4.1% in 2023, in addition to 7,000 investment projects registered at the AAPI level and the creation of 250,000 jobs through recently launched projects in the country. “The indicators are green. I would say that Algeria’s growth rate is one of the best in the Mediterranean basin, thanks to the favorable business climate and the renewed confidence,” he said.
The Minister of Industry and Pharmaceutical Production, Ali Aoun, for his part, specified that “the mining and steel sector has transformed Algeria from an importing country to an exporting country”, claiming to have “total confidence in the operators who operate in this sector.”
According to Aoun, with an annual production of 4.3 million tonnes of steel products and the future exploitation of iron ore from Gara Djebilat, Algeria is in the process of positioning itself as a major player, even a major supplier for the all of its partners.
Also present at 27e edition of PWC’s Global CEO survey, the first manager of Tosyali Algeria, Alp Topçuoglu, revealed that the company will launch three new projects in Algeria. According to this manager, the first project aims to support the automobile industry, the second revolves around production at the Gara Djebilat deposit and the third consists of launching a green hydrogen production unit.