english issue case of Algeria , the maximum acceptable level of debt would be around 100 billion dollars under current conditions . Obviously , the levels of such debt depend on the country ’ s profile . Therefore , the more a country is open and transparent the lower the rate . Another advantage of debt is the need for transparency in the management of government accounts . We should be more open , because countries are rated on the basis of reform and transparency , which is not a bad thing to combat corruption and inaction .
Despite government efforts and its proactive approach to improve the economic environment , the business climate is deemed hardly encouraging by foreign investors . In your opinion , what mechanisms should be set up to boost productive investment , including FDI ? The recent Ernst & Young study on FDI in Africa has shown that Algeria experienced a significant
decline in FDI in 2014 , which was essentially affected by the energy crisis . As a matter of fact , Algeria managed to attract a mere 4 % of FDI devoted to Africa , amounting to USD 2 billion . This amount is in sharp decline down from 20 % in 2013 . This poor performance is due to the crisis in the energy sector but also a difficult environment for foreign operators . Besides , this hostile climate is also faced by domestic investors . Some analysts point their finger at the so-called 51 / 49 % rule , while others say it ’ s the scarcity of land that makes it hard for our economy to transform and open up . The major problem is the role of the state in the economy and bureaucratic red tape generated by the profusion of laws and guidelines to monitor investors . The government should tackle these major issues quickly . We have created a bureaucratic monster made up of myriad laws that stack up high . Today we are faced with a paralyzing system as managers cannot make decisions locally to give the green light to projects and feel like prisoners of the bureaucratic machine . This situation is not voluntary and even some ministers have publicly acknowledged their dismay at the central and local administration that blocks all initiatives . We need to find quick fixes and remove these barriers to investment . The government should change its approach and shift from prior monitoring to a posteriori checks . This way , entrepreneurship is encouraged and then monitored . It is clear that the issues of land , financing , and the legal framework are hurdles , but investors are able to overcome them . Investors do not expect the government to provide aid , they expect trust and support in their journey through the intricacies of the Administration .
In the current crisis situation , which sectors are likely to see the emergence of economic diversification as expected by the government to reduce the country ’ s dependence on oil ? Given its geographical position , dynamic demographics , natural
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OIL & GAS business / NUMÉRO 14 / Avril 2016 / 49