Rédaction Africa Links 24 with ania.b
Published on 2024-02-18 16:07:03
The promise was great, but inaction reigns, the initial excitement around the joint venture between Algeria and the United Arab Emirates (UAE) quickly gave way to disappointment. Hopes of creating jobs, locally producing rails, and reducing imports of pipelines for the oil and hydraulic industry have remained unfulfilled.
Indeed, during his recent visit to Sider El Hadjar, the Minister of Industry and Pharmaceutical Production was confronted with bitter reality: the Emarat Dzayer Steel (EDS) project, the result of an Algerian-Emirati alliance, has become a burden rather than a development engine for the complex.
The initial ambitions of the partnership, celebrated at its validation by the State Participation Council, have encountered a series of failures. Despite promises, the projects envisioned by EDS have not materialized in nearly six years.
Economists’ analysis reveals a clear imbalance in favor of the foreign party. Although the project was approved for a 51/49 joint venture, Algeria ended up bearing the majority of the costs, leaving a disproportionately heavy financial burden on its shoulders.
Faced with this impasse, some experts question the choice of partners and suggest turning to more beneficial alternatives, including seeking Chinese companies. A re-evaluation of the partnership strategy is urgent to maximize economic benefits.
Unfulfilled promises: operational aspects in distress
Furthermore, in terms of employment and training, the initial commitments of the partnership have remained unfulfilled. The ambitious plans for creating direct and indirect jobs have never gone beyond the stage of promises.
The implementation of the project was supposed to take place in two phases, but none have been completed. The planned investments for the expansion and modernization of the facilities have remained on paper, leaving the complex in a state of stagnation.
The inability to realize this mega-project has had direct effects on the industry, with a continued dependence on imports, especially from China, for pipeline needs, highlighting the failure of the initial strategy.
Faced with this impasse, demands to terminate the contract with Emirati partners are multiplying. Authorities are being called upon to release the Sider El Hadjar complex from this financial and administrative burden.
Read the original article(French) on Algerie 360
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