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The Foreign Bank of Algeria (BEA) took a new step in the internationalization of the Algerian banking and financial system, with the inauguration, last Thursday, of its first 100% subsidiary in France, through three branches. A step described as important by specialists in economic issues with regard to the impact of this initiative on investment and foreign trade.
Described as “historic” by the BEA, the opening of the bank’s branches in Marseille, Saint-Denis and Courcelle goes beyond being the accomplishment of an objective achieved as part of the establishment’s international expansion strategy. It is the opening of the Algerian banking system that is at stake, with a major direct impact on the national economy.
For the international economic development consultant, Abderrahmane Hadef, the opening of BEA branches in France marks “a turning point for investment and foreign trade”, affirming that this establishment reflects a clear desire, that of “deploying an international presence capable of supporting Algeria’s economic dynamics and strengthening financial links with Europe”. He immediately highlighted the new perspectives that this international banking presence opens up for investment, for foreign trade operations, in addition to meeting the growing expectations of businesses and the diaspora.
On the investment side, the opening of three bank branches in France offers, according to Mr. Hadef, a better connection between the European and Algerian markets. “By establishing an Algerian bank in France, the BEA brings foreign companies closer to a contact who is intimately familiar with the Algerian terrain, its rules, its priorities and its opportunities,” he said, highlighting the importance of this proximity. This will, he added, reduce barriers, speed up financial procedures and strengthen confidence. “An essential element to encourage investments,” he underlined, referring to the sectors on which Algeria is banking for its economic transformation, such as renewable energies, industry, digital technology, agro-industry.
As for foreign trade, the opening of these bank branches constitutes “concrete support”, assured Mr. Hadef, especially since they are capable of changing the situation. “Banking operations, often perceived as long, complex or costly, are gaining in speed, clarity and security,” assured the international economic development consultant, noting that for French companies, the BEA becomes a direct entry point to the Algerian market.
This new banking infrastructure can also, he estimated, support the national ambition to diversify exports. “By positioning itself at the heart of one of the main European markets, the BEA can support Algerian companies in their international development, give them visibility and support their operations,” he indicated, highlighting another point in the internationalization of the BEA, that of being “a strong sign of modernization and openness for the Algerian banking system.”
This approach by the BEA could, according to Mr. Hadef, inspire other national banks, opening a new phase in the modernization of the Algerian financial sector.
The impact of the BEA’s presence in France is also on the side of the Algerian diaspora, which is very present in France. The latter will find, assured the consultant, “a valuable tool”, by offering “direct access to a national bank, its savings, its projects and its entrepreneurial ambitions”.
The inauguration of the first BEA subsidiary in France is also described by economics professor Mohamed Achir as a “very good initiative”. Affirming that this approach aims at the internationalization of the Algerian banking and financial system, he indicated that this presence of the BEA “primarily targets the needs of Algerian immigration abroad, particularly in France and Europe”. The bank thus offers a means of transferring funds for immigration, but also a means of financing investment and facilitating transfers of businesses owned in particular by the Algerian diaspora, noted Mr. Achir, according to whom it is also necessary to go to other countries, mainly targeting the country’s first economic partners.