Algeria: Call for law reform to boost export credit insurance
Source: Middle East Insurance Review | Apr 2018
A senior executive of the Algerian Insurance and Export Guarantee Company (CAGEX) has called for legislation to be revised to further promote Algerian non-hydrocarbon exports and export credit insurance. Non-hydrocarbon exports amounted to only US$1.8 billion in 2017, or 5% of the country’s overall exports.
“There has to be an upgrade of our international trade laws and regulations. Many exporters have difficulties in achieving their exports. Reform is required to put exporters in the ideal position to flourish internationally,” said CAGEX CEO Djilali Tarikat.
Currently almost 25% of Algeria’s 700 exporting companies are insured by CAGEX, according to Algerian Press Service. The company also covers around 10% to 15% of the total volume of Algerian non-hydrocarbon exports.
According to Mr Tarikat, the premium on export credit insurance policies varies between 0.15% and 1% of the value of exports.
He said there is a need to develop export credit insurance and review the penalties provided for in the current law against exporters who do not repatriate foreign exchange earnings from their export activities.
“There is no point in exporting the goods without repatriating the counterpart (in foreign currency),” Mr Tarikat said.
Export activity in Algeria is also dependent on improvement in foreign exchange regulations, infrastructure and logistics (storage, packaging, etc), border control, the promotion of services to exporters, improvement in the Algerian fleet in sea and air transport, and raising standards at banks to give them the opportunity to better support exporters. M