For the first quarter, French exports to Algeria fell more than 20 percent from €1.25 billion to €992 million. This is no surprise given the ongoing row between the two countries, but some believe it could have been worse. For context, total exports last year for France were some €550 billion.
“I’m a little surprised by this relatively small decline,” Michel Bisac, president of the Algerian-French Chamber of Commerce and Industry (CCIAF), told Le Figaro, calling the latest data more of a warning. Nevertheless, the group is also concerned about “the investment and development of renowned French companies in Algeria.”
From companies no longer being able to easily import components and spare parts from France to France being excluded from grain and milk powder tenders, the writing is on the wall. “It’s true that foreign companies as a whole are complaining about blockages. But let’s not lie to ourselves, everything has suddenly become much more difficult for the French,” notes the director of a French multinational based in Algeria.
Meanwhile, Algeria has announced it will have a self-sufficient auto industry by the end of the year. This has impacted both the Renault plant (cars) and the Volvo Group-Renault Trucks plant (trucks). Renault had already invested some €120 million in its plant on the ground in Algeria.
Le Figaro quoted one French industrial company manager who conducts 100 percent of his business in Algeria: “I sell equipment to clients who are investing in very expensive industrial projects, sometimes spanning three years. These clients are therefore worried that the political context will impact their orders, and some prefer to turn to a Spanish or Italian supplier.”
In response to the trend of French companies circumventing the blockade by shipping their goods from other European ports, one company head noted: “Let’s not kid ourselves, such an approach has a cost, which is passed on to the consumer.” There are also legitimate concerns the Algerian government will eventually demand to know where such products were originally produced.
Bisac says large international companies will be fine, but SMEs, “if the situation worsens, will not be able to adapt.” Algeria represents, according to the paper, the second-largest export market for French exports to Africa for 6,000 French SMEs.
Many also bemoan the drop in French companies present at Batimatec, the major building, construction materials, and public works trade fair held in Algiers in May. However, as noted by Le Figaro, those who did show up remain positive, with one saying that “Algerian customers are even very loyal. If things go well with you, they will not go to the Turks or the Chinese on the pretext that they are 10% cheaper.”
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