The western media has been purposely propagating against BRI in Algeria and terming it as so-called poisoned chalice which does not have any evidence or scientific substance. It has been icon of socio-economic prosperity.
In this regard, both countries have now entered into a new stage of holistic development, and they intend to deepen cooperation in the diverse sectors of economy, trade, investment, energy, mining, and infrastructure construction under the BRI framework, so to achieve common development which will also benefit other developing countries. Algeria is also prepared to work with China to promote trilateral cooperation with Africa.
Moreover, both parties agreed to speed up consultations on signing the five-year plan for China-Algeria comprehensive strategic cooperation and the implementation plan for jointly constructing the BRI.
Interestingly, China is involved with the development of Algeria’s El Hamdania Central Port, which will be Algeria’s largest and first deep water port and the second deep-water port in Africa.
It is located 90 miles from Algiers, Algeria terms the Port of El Hamdania as a regional hub for North Africa in the Mediterranean, competing with Morocco’s Tangier-Med Port.
It will have a capacity of 25 million tons per year and 23 terminals capable of handling up to 6.5 million 20-foot containers.
With a project budget of US$3.3 billion, international port development and equipment companies should monitor procurement opportunities for computer systems and software; design and planning services; dredging; security systems, services, and technology; terminal technologies and systems; and vessel traffic information systems.
Furthermore, Chinese companies have become Algeria’s preferred partners for infrastructure projects, and include the East-West Highway, a US$12 billion contract for a half of the 1,216 km highway which connects Algeria with neighboring Morocco and Tunisia. The six-lane Chinese build section was completed by CITIC-CRCC.
About 1,000 Chinese companies operate in Algeria, assisted by the Algerian Governments waiving of the 51/49 ownership rule (for non-strategic sectors). The government has identified key areas where Algeria can leverage its competitive advantage, including solar energy, phosphates, gold, uranium, zinc, and iron ore resources vital for the development of both Algeria and China.
Additionally, Algeria is a member of the African Continental Free Trade Agreement (AfCFTA) which has been commenced and has largely abolished all intra-African trade tariffs. It means that ports such as El Hamdania will flourish as Free Trade Zones will also be part of these developments. It further means that component parts can be imported duty free, matched with African sourced products, with finished products either re-exported or sold back onto the African continental market.
Algerian-China trade has been growing in recent years, with China overtaking France as the largest exporter of goods to the country in 2019. China exports about US$7.9 billion to Algeria, with Algeria exporting US$1.2 billion to China. The two countries signed a double tax treaty in 2006.
China and Algeria signed a plan for cooperation in key areas during the 2022-2024. The signing of the cooperation plan is a significant move to enhance China-Algeria collaboration within the framework of the BRI.
China and Algeria will establish a committee to jointly pitch prospective cooperation projects in the six key areas of transportation, energy and minerals, manufacturing and R&D, information technology, financial services and medical services to enterprises of the two countries.
Enterprises and financial institutions of the two countries are encouraged to join hands in the research, implementation and operation stages of the prioritized projects so as to promote common development, said the NDRC announcement.
The Algerian-Chinese Fertiliser Company, created in 2022 between the two complexes". Algeria's Asmidal and Algérie Mines and the two Chinese companies, Wuhuan and Tian An, will operate the phosphate mine in the province of Tébessa in the far east of the country, and will carry out the chemical transformation of phosphate and natural gas and the manufacture of phosphate and nitrogen fertilisers and chemical products in the province of Souk Ahras.
China's increasing investments in Algeria in the energy and logistics sector show China's desire to transform economies and communities of Maghreb especially Algeria. In this regard, Algeria's application to join the BRICS is worth noting.
China and Russia have already expressed their willingness for Algeria to join the BRICS, and negotiations are continuing to move forward with this initiative, confirming the North African country's desire to look increasingly towards Asia and reposition itself on the international stage.
According to latest report more than 150 countries and 32 international organizations have signed cooperation documents with China under the BRI framework. More than 3,000 projects have been completed with an investment of nearly $1 trillion. The project 10000 villages in Africa have also been successfully completed. Moreover, most of the participants are developing countries, and the BRI connects these countries to markets all over the world, not just to China.
According to the published reports of the World Bank, transportation infrastructure projects under the BRI, if fully implemented, are expected to generate $1.6 trillion in benefits annually by 2030 accounting for 1.3 percent of global GDP. Of these benefits, 90 percent will go to partner countries, with low-income and lower-middle-income countries being the biggest beneficiaries. Thus western false and fake propaganda dubbing the BRI as a debt trap has no value because China values long-term economic and social benefits over short-term return.
To conclude, there is an urgent need to accept inclusion of Algeria in the strategic expansion plan of the BRICS. Moreover, China should encourage developing Algerian SMEs, agriculture, green energy, hydro-power generation, mining, mineral, infrastructure development and last but not least, human development and tourism cooperation in the days to come which would create befitting propositions for both the countries and their respective private companies in the days to come.
The policy makers of China should also help Algerian government to expedite its Vision 2030 and 2035 enabling it to achieve all desired goals of socio-economic prosperity, greater regional connectivity and qualitative life in the days to come.
Algerian President Abdelmadjid Tebboune reaffirmed its government strong commitment to deepen cooperation with China in various fields under the framework of the BRI.
Interestingly, China stands ready to join hands with Algeria to safeguard the legitimate rights and interests of developing countries and uphold international justice.
The mutually beneficial cooperation between the two countries has great potential and space for development, Wang said, adding that China encourages its enterprises to invest and do business in Algeria.
China is willing to work with Algeria to translate their high-level political mutual trust into tangible results of cooperation, help Algeria accelerate the pace of industrialization, and enhance its capacity for independent development under the flagship project of the BRI.
Written by Dr Mehmood Ul Hassan Khan
Executive Director: The Center for South & International Studies (CSAIS) Islamabad
Regional Expert: China, CPEC & BRI
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