Insufficient economic cooperation between Serbia and Algeria - Hemofarm and Mihailo Pupin Institute to break ice

The Ambassador of Algeria to Belgrade, Abdelkader Mesdoua, said today (January 27, 2010) that he was not satisfied with the economic cooperation between Algeria and Serbia and invited Serbian companies to invest in Algerian market.

During his visit to the Chamber of Commerce of Serbia where he spoke to Serbian entrepreneurs, Mr. Mesdoua invited Serbian companies to join in consortiums and enter Algerian market.

- Serbian enterprises need little courage and imagination, especially since they already have skills and competence. Competition in Algeria is strong and it leaves almost no room for random events and affinities. That is why I advise Serbian enterprises to join and cooperate with Algerian companies and enter the market in that way - said the Algerian Ambassador.

As it was announced at the meeting, the latest regulations in Algeria stipulate that foreign companies must open their branch offices or factory units in that country, 30% of which must be in the possession of Algerian companies.

The Ambassador of Algeria said that one of positive examples was Hidrotehnika, which already cooperated with Algerian partners. The contract should also be signed soon by Vršac-based Hemofarm, while Mihailo Pupin Institute is expected to take part in construction of the highway from the north to the south of the country.

Radosav Janković, a representative of the Ministry of Foreign Affairs of Serbia, said that the economic cooperation between the two countries was at very low level, that Serbia registered surplus in that trade and that military economic cooperation was the least developed.

He said that, in the period January - November 2009, Serbia had exported 14.5m EUR worth of goods to Algeria and imported only 55,000 EUR worth of goods from that country.

He said that Serbia had mainly exported drugs, transporters, trailers and small trailers.

Algeria has the gross national product of 163 billion EUR. After they repaid major share of loans before the economic crisis, including the debt to Serbian companies, their current foreign debt amounts 400m EUR. Oil has the biggest share in the economy - about 50%.