Will Tebboune move to repair Sellal’s damage to Algeria’s economy?

Algeria

Published on Monday, 12 June 2017 Back to articles
Abdelmadjid Tebboune
Prime Minister Abdelmadjid Tebboune

Algeria’s Prime Minister Abdelmadjid Tebboune has been preoccupied with his new government’s plan, to be presented on 18 June, which is geared towards repairing much of the damage done to the economy by his predecessor, Abdelmalek Sellal. This could be one reason why there has been an apparent delay in filling many national and local government posts.

Sellal was more concerned in maintaining his own position as prime minister as long as possible rather than in maintaining the health of the economy. Since the onset of the economic crisis some two and a half years ago, Sellal repeatedly ignored economists’ warnings about the country’s over-dependence on hydrocarbons and their advice to invest in profitable export-orientated non-hydrocarbon projects. Sellal’s response was usually to procrastinate in the hope that his luck, in the form of higher oil prices, would turn.

It is believed and hoped that Tebboune is preparing plans to repair the damage that has been done to the economy over the past two-three years by Sellal and former industry minister Abdeslam Bouchouareb who was sacked on 25 May.

Sellal appeared unable to see beyond the state sector and the pumping of massive funds into state projects — for housing, water supply, education, training, transport, etc. — without ever being able to initiate a non-hydrocarbons turnaround. The worst part of this policy was that it resulted in average annual economic growth of only 3.5%.

It was only in the last few months in office that Sellal began to think of initiating a new model of economic growth that was oriented more towards liberating the private sector and developing Algeria’s very significant renewable energy sector potential. There is now considerable hope and anticipation that Tebboune’s new government plan will be geared towards activating the economic plan that Sellal talked about but failed to initiate.

This is an article from our weekly Algeria Politics & Security publication.

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