Developing foreign direct investments leveraging expatriates networks : an algerian case study

Within the framework of the Invest program in Med (1) co-financed by the European commission, a workshop has been held organized by ACIM, (Agence pour la Coopération Internationale et le Développement local en Méditerranée)  in Algiers on October 25 and 26 on foreign direct investments by Algerian expatriates. This workshop gathered 20 heads of small and medium enterprises members of the Algerian diaspora in France and high representatives of the Government and Algerian private sector who demonstrated a strong will of dialogue and support for the investment plans proposed.

Showing the importance of proximity in foreign direct investments
This workshop showed the interest to work on new types of FDI (foreign direct investments) : investments carried out by expatriates, relying on strong partnership networks, leveraging their bi-culture, to develop small and medium projects in their home countries. On 2 million out of the 5 million algerian expatriates would be potentially positioned on this kind of investments which can be a major source of job creation and know how transfer.

Vocational training is one of the top priorities for Algeria
Priority topics for the development of the FDI were identified and in very first place vocational training, a cornerstone of the modernization and internationalization of the algerian economy. Other key identified sectors for the development of small and medium investment projects are fishing, agro-industry, building and construction, environment, tourism, and ICT.

Partnerships needed
The recent law on investments (LFC 2009), reinforces the role of the intermediaries in the setting up of investments projects in Algeria. The Minister for the National community abroad, Djamal Ould Abbès with announced the opening of Algerian bank subsidiaries abroad to accompany the investments by the migrants. Abdelkrim MANSOURI, Managing director of the National agency of Development of Investment (ANDI) promoted the matchmaking platform enabling investors to find local partners and investments opportunities on selected sectors and regions.

Concrete follow up
This workshop, largely covered by the Algerian press, allowed the emergence of several short term projects. Thematic workshops will also be proposed to the government via the Minister for the National community abroad. to follow up actions on Foreign Direct Investments by expatriates