Algeria is strengthening its automotive industry with a new memorandum of understanding aimed at increasing local integration rates and supporting spare parts manufacturing.
Industry Minister Sifi Ghrieb oversaw the signing of a memorandum of understanding yesterday between the Ministry of Industry and Algerian vehicle manufacturers. This initiative aligns with the national strategy to develop the automotive sector and meet the needs of the local market.
Developing a Sustainable Automotive Industry
The discussions focused on establishing a robust national automotive industry by fostering a technically and economically efficient industrial fabric. The agreement adheres to the directives of the country's highest authorities, aiming to build a sustainable and competitive sector.
"This agreement marks a significant milestone in the Ministry's roadmap to develop the automotive industry through an inclusive and balanced approach. The primary goal is to increase local integration rates by encouraging manufacturers to use more Algerian-produced components and reduce dependency on imported spare parts," said Minister Sifi Ghrieb.
Representatives of automotive brands expressed their commitment to the government’s ambitious strategy. The memorandum enforces strict compliance with specifications, particularly articles 12, 13, and 14, which define local integration requirements.
Strengthening the Spare Parts Ecosystem
Beyond boosting vehicle production, the agreement aims to enhance the spare parts industry by fostering a favorable environment for national and international equipment manufacturers. A strong spare parts sector is crucial for the long-term sustainability of Algeria’s automotive industry.
The strategy ensures that components meet the quality standards required by automakers already operating in Algeria and potential future investors. It also promotes cooperation between vehicle manufacturers and component producers to enhance supply chains.
"The development of a competitive national automotive industry depends on the efficient collaboration of all stakeholders. This requires an attractive investment climate supported by a clear and motivating regulatory framework," the Minister stated.
To facilitate this, the Ministry of Industry will assist manufacturers in simplifying administrative processes, ensuring technical compliance, and optimizing supply chains. The objective is to elevate the Algerian automotive industry to higher standards of quality and innovation.
Despite existing challenges, the Minister remains optimistic about the sector’s progress toward self-sufficiency and competitiveness.
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