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Algeria

The original report was published in The Times on Thursday, July 5, 2012
Laid Benamor, General Manager of the Benamor Group
         

Private sector puts new opportunities on a plate

Algerian entrepreneurism is reflected in the country’s leading food producer which is also looking to enter the hotel and tourism sectors
Earlier this year, a trade delegation from the US that included seven wheat producers visited El Fedjoudj Commune in Guelma Province. Its mission was to exchange ideas and experiences with Algerian producers and seek out opportunities for partnerships between the two countries.

During the visit, the US wheat growers delegation held talks with representatives of the Benamor Group, a leader in Algerian agro-industry and part of an association that is driving forward improvements in wheat quality. The visit came just a few months after US Ambassador to Algeria Henry Ensher had also visited the Benamor Group at the same location.

According to Laid Benamor, General Manager of the Benamor Group and President of the Wheat Quality Improvement Network, the February meeting helped to open discussions on “serious prospects for Algerian-American relations in the area of wheat production and marketing for the great benefit of such an important sector of food production in Algeria.”

The Benamor Group was founded in 1984 and is a leading producer of a variety of foodstuffs, such as tomato paste, jams and preserves, durum wheat pastas and couscous. It is also involved in food canning. It has an annual turnover approaching 20 billion dinar (£164  million) and employs more than 1,000 people.

“We have a project to build a large mill that will allow us to triple what we presently produce,” says Mr Benamor. “Likewise, we will be expanding our production of pasta and couscous, due to the astronomical storage capacity compared to what we have now.
“Still sticking to the agri-food sector, we want to expand into new areas like producing biscuits – which is something we have never done before. We will try to keep the same line, process and product quality, different from what you can find on the market. The only sector we have not yet explored is livestock agriculture.”

In Europe and the US, the company’s products are extremely popular with the Diaspora looking for a taste of home. Mr Benamor says, “In the case of France, for example, Algerian and North African migrants are the foremost couscous consumers. Today, and since we started exporting two years ago, they are proud to have high quality Algerian products. Although people always believe that couscous is a Moroccan product, it is actually a North African one, which also comes from Algeria and Tunisia.”

Beyond agriculture, the company has also invested in Algeria’s real estate business and is representative of Algeria’s private-sector entrepreneurism that is beginning to gain a higher profile.

Mr Benamor is one of several prominent Algerian businessmen increasing their involvement in the country’s long-overlooked hotel and tourism sectors. With a view to diversifying the company’s interests, he is on the lookout for specialists in the construction, interior design and hotel furnishing trades to help him develop a 2,000-bed resort near El Tarf on the Tunisian border.

The Benamor Group also reflects an increasing trend in Algeria’s private sector to improve corporate social responsibility. “We have a lot of projects and want to help citizens. The first step is to create more and more employment; we focus on this above doubling our revenue. It is our priority,” says Mr Benamor. “By doubling employment we are at the same time trying to maintain a solid purchasing power.”

ALGERIA PROJECT TEAM:
Christophe Laurent (Editorial Director);
Paloma Garralda (Project Director);
Alain Caignard, Jose Ignacio Alegre and
Brianne Bystedt (Project Co-ordinators)

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LOCATION:   
Northern Africa, bordering the Mediterranean Sea, between Morocco and Tunisia 
 
AREA:   
total: 2,381,741 sq km

CLIMATE:   
arid to semiarid; mild, wet winters with hot, dry summers along coast; drier with cold winters and hot summers on high plateau; sirocco is a hot, dust/sand-laden wind especially common in summer 
 
NATURAL RESOURCES:   
petroleum, natural gas, iron ore, phosphates, uranium, lead, zinc 
 
LANGUAGES:   
Arabic (official), French (lingua franca), Tamazight (Kabylie), and other Berber dialects
 
RELIGIONS:   
Sunni Muslim (state religion) 99%, Christian and Jewish 1%
 
POPULATION:   
35,406,303 (July 2011 est.)
country comparison to the world: 35  
 
GOVERNMENT TYPE:   
republic
 
CAPITAL:   
name: Algiers
 
INDEPENDENCE:   
5 July 1962 (from France) 
 
GDP - composition by sector:   
agriculture: 12%
industry: 56.5%
services: 31.5% (2011 est.)
 
AGRICULTURE - products:   
wheat, barley, oats, grapes, olives, citrus, fruits; sheep, cattle
 
INDUSTRIES:   
petroleum, natural gas, light industries, mining, electrical, petrochemical, food processing
 
EXPORTS:   
$78.51 billion (2011 est.)
 
EXPORTS - commodities:   
petroleum, natural gas, and petroleum products 97% 
 
EXPORTS - partners:   
US 24.9%, Italy 17.5%, Spain 10%, Canada 6.3%, France 5.1%, Netherlands 5.1%, Brazil 4.3% (2009)
 
IMPORTS:   
$49.84 billion (2011 est.)
 
IMPORTS - commodities:   
capital goods, foodstuffs, consumer goods 
 
IMPORTS - partners:   
France 18%, China 10.6%, Italy 9.9%, Spain 7%, Tajikistan 4.8%, Germany 4.4% (2009)
 
AIRPORTS:   
143 (2010)

PIPELINES:   
condensate 2,600 km; gas 16,360 km; liquid petroleum gas 3,447 km; oil 7,611 km; refined products 144 km (2010)