A published interview with former minister and renowned economist Ferhat Ait Ali on an Algerian electronic channel. During the interview, the minister spoke about many matters unknown to Algerian citizens regarding the economy, particularly the industrial sector, of which he was a part. He also served as Minister of Industry during the first term of Algerian President Abdelmadjid Tebboune.
Former minister Ferhat Ait Ali spoke about his personal life, his educational background, and the positions he has held throughout his life. What is striking, however, is that the minister has a revolutionary background that many may not know.
He belongs to a revolutionary family and a tribe from which well-known mujahideen and revolutionaries emerged. Furthermore, the minister was a fighter in the National Liberation Front (FLN).
Mr. Ferhat Ait Ali spoke about the most important issues that sparked considerable controversy during his time at the Ministry of Industry. He addressed the issue of the list of agents whose applications for accreditation were accepted. He stated that the list is not an official acceptance, but rather merely an acceptance of candidacy.
He stated that there are joint ministerial committees that review these applications and assess their compliance with the requirements of the specifications. This does not mean that those included on the list have been officially accepted.
The second topic the minister addressed was the issue of car assembly in Algeria. The minister stated that he had been honest before he assumed the ministry and remains so, considering that car assembly and car manufacturing are two distinct fields, not one and the same.
He added that anyone who expresses an intention to assemble does not intend to manufacture, and it is unreasonable for 15 brands to submit applications to assemble cars in a country like Algeria.
Mr. Ferhat Ait Ali said: “All the brands that requested and assembled cars in Algeria did not fulfill their commitments. They sold semi-finished cars and claimed to assemble them.” The minister posed the question, “If you want to assemble them, what need do you have of assembly?” The minister meant that the intention was not sincere and was an exploitation of the laws and the influence of certain figures affiliated with car dealerships. This, of course, was the case during the days of former Algerian President Abdelaziz Bouteflika.
The most important element discussed by the minister was the issue of integration and the manufacturing rate. He specifically mentioned Renault. He stated that in 2017, he worked as an external consultant with the former Minister of Finance, Mr. Mahjoub Bedda, and conducted a comprehensive study to assess and calculate the actual integration rate reached by Renault.
He found that it was around 6.5%, significantly lower than the rate announced by Renault, which claimed to have reached 28% in 2017. According to the contract concluded between the company and the Algerian government, it was supposed to reach 30% in 2019.
The issue does not end here. The minister added that after his appointment as Minister of Industry in 2020, he reviewed official reports from the Algerian government and found that the actual integration rate at Renault was 4.7%, a very weak rate and lower than the rate he had personally calculated. All of this demonstrated to Algerian citizens that car assembly in Algeria would never transform into actual manufacturing.
Regarding the issue of importing cars less than three years old, economic expert Farhat Ali said that the major problem was how citizens obtained hard currency, because the state monopolizes this currency. If it does not provide it to citizens, this means resorting to the black market to purchase currency. He said that this constitutes official recognition by the state of the legitimacy of the black market in Algeria.
According to the minister, the import of used cars is primarily directed at lobbies whose goal is to manipulate the economy and citizens by flooding the Algerian market with counterfeit and non-compliant cars, a matter he believes is difficult to control.
Mr. Farhat Ait Ali spoke on many topics and answered questions that Algerian citizens had not found answers to during his time as minister. According to the economic expert, Algeria during the era of the late President Houari Boumediene was a real country with a real industry sufficient for Algeria and achieving self-sufficiency. It was possible to build on this and transform it into a global industry, but things deteriorated for reasons well known to everyone.
Real vehicle manufacturing begins with excavation, transportation, and agricultural machinery, not passenger cars, and assembly is not suitable for Algeria.
Farhat Ait Ali
