Why don’t banks implement an individualized system for handling fund transfers from Algerian immigrants?
Countries that have done so consider these transfers as “an important element of the balance of payments, comparable to tourism revenues,” according to Mr. Benkhalfa. This is the case in Egypt, Morocco, and Lebanon. Conversely, when these transfers are seen as “subsidiary elements in capital capture,” they are treated as routine transactions. This is the situation in Algeria.
However, the problem with individualized statistics is that they only correct transfer figures by about 20%. The bigger concern that disrupts statistics is the “dual parallel practice” involving both a visible informal market and a more “invisible” market where dinars are exchanged for foreign currencies outside Algeria. These two elements may explain why Algerian transfers are relatively low compared to other countries.
SMAÏL CHIKHOUNE. VICE-PRESIDENT OF THE ALGERIAN INTERNATIONAL DIASPORA ASSOCIATION (AIDA)
“The Algerian diaspora generates a turnover of over 100 billion euros”
Smaïl Chikhoune is the president of the Algerian-American Business Council and co-founder of the International Association of the Algerian Diaspora (AIDA).
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The contribution of the Algerian diaspora to the country’s development remains relatively unnoticed. Why is that?
Firstly, it is because the diaspora is widely scattered around the world, and until now, it hasn’t been organized. Currently, there are between 5 and 7 million Algerians residing outside Algeria. The majority of them are concentrated in France, where there are 3 to 4 million Algerians. However, this community is widely dispersed, even though there are some micro-organizations and associations scattered everywhere. There hasn’t been an organization capable of uniting all these people. This is why the idea of creating AIDA came into being. We registered this non-profit association in Geneva, where the major international organizations are based.
Since its inception a year ago, we have been in contact with members of the diaspora in several countries. We have organized meetings in France (Paris, Lyon, and Marseille), London, and the United States (San Francisco, Los Angeles, New York, and Washington). We are also planning meetings in Dubai and Singapore. We are currently establishing an organization and an electronic platform. Once we gather everyone, we will have a comprehensive database to know who does what. We are cataloging people based on their specialties (doctors, engineers, professors, etc.) and their professions (plumbers, electricians, etc.). We already have thousands of members.
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Do you have an idea of their composition?
We were surprised by the number of entrepreneurs and managers that we have identified. There are over 200,000 business owners generating a turnover of over 100 billion euros. This figure doesn’t even take into account those who contribute indirectly, such as university professors. Algeria stands to gain a lot by emulating the experiences of other countries (China, India, BRICS) that have engaged their diaspora. In this context, AIDA has two main objectives: the first is to focus on intra-diaspora cooperation among the community members themselves. The second is to contribute to the Algerian economy. All members of the community are willing to contribute, but we will act in an organized manner, based on sectors of activity and expertise (university professors, engineers, etc.). Then, we will engage in discussions with the Algerian government.
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What do you expect from the Algerian authorities?
As a diaspora, we want to be an intermediary with the Algerian authorities. They should also organize themselves by establishing an inter-ministerial agency comprising the Ministries of Foreign Affairs, Higher Education, Labor, Industry, etc. Until now, everything has been dispersed. There is indeed a ministry responsible for the overseas community, but it mostly deals with administrative matters. They have never focused on raising awareness or conducting a census of the diaspora based on specialties, for example.
Once this agency is created, we can define a roadmap based on immediate needs and then on medium and long-term goals. However, a long-term vision is needed, and that is what has been lacking. We intend to address the government through this agency and hold monthly meetings during which we can propose, based on specialties and sectors, individuals capable of contributing remotely and those who can come to Algeria as coaches or mentors to help young ANSEJ entrepreneurs sustain their businesses.
But when Algerian expertise comes, it must be adequately compensated. If today we give a young person in the context of ANSEJ the equivalent of 100,000 euros, I believe we should give them 85,000 euros and reserve the remaining 15,000 euros for a member of the diaspora who would come to support and mentor them until their company becomes sustainable and capable of creating employment.
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Do you think that, today in Algeria, all else being equal, foreign experts are favored?
Certainly. Today, the prominent leaders in Silicon Valley have Algerian origins. They are top managers at Cisco, HP, Intel, and all major high-tech companies. There is also national expertise, but it doesn’t find the socio-economic conditions to excel. Take any young Algerian graduate; as soon as they arrive in Europe or the United States, they excel because they find a favorable environment.
In Algeria, there are laws that need to be changed. For example, if an American company wins a project in Algeria and one of the experts in that company is an American of Algerian origin who has to work in Algeria, they will be paid in dinars, while an American expert would be paid in dollars. This is absurd. Furthermore, when a foreign company is favored in Algeria, the first thing it does is look towards the Algerian diaspora because it contains people who understand the country’s culture and possess the necessary expertise. It is unfortunate that the host country has to seek the diaspora to work in its country of origin.
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What about Algerians who come to invest in Algeria?
I approached the Algerian diaspora in the United States, starting with those operating in Silicon Valley, and we thought it was time to see how we could help Algeria. We started by creating the Algerian Start-Up Initiative (ASI) with the idea of finding recent graduates in Algerian universities whom we could help create a business plan and support with an incubator to develop start-ups. To finance them, we thought of creating an investment fund, the Casbah Business Angel, which selects the best ideas and supports young entrepreneurs through investment. The last meeting took place on June 10 in Algiers, and we identified three extraordinary young project creators. They will be supported to develop and establish their start-ups.
Additionally, there is a program between the Algerian government and the Americans on the biotechnology hub. Algeria’s ambition is to create the 4th biotechnology hub in the world by 2020 (after Boston, Dublin, and Singapore). Many leading biotechnology companies worldwide are participating in this project. We also included members of the diaspora and are compiling a list of all the expertise available in Algeria that could be involved. Algeria has no other choice but to work with its diaspora so that one day we become productive, and our young people are encouraged to excel and are capable of starting their own businesses.
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What percentage of the diaspora is capable of contributing to the Algerian economy?
That depends on the regions. If we take the United States, where Algeria has a tradition of sending students, out of the 30,000 people in the Algerian community, there are over 20,000 entrepreneurs, managers, university professors, etc. Overall, I think that among the Algerian diaspora abroad, about 30% to 40% are highly competent and experts in their fields. The rest have expertise in different professions, and we will also identify and work with them.
