New microfinance strategy unveiled in Algeria

Apr 27, 2011

Many very small enterprises are struggling to obtain credit in Algeria, according to some financial experts.

Microfinance "must be considered as an instrument to promote entrepreneurship and encourage the creation of VSEs and jobs", said the Algerian Minister for Investment, Mohamed Benmeradi, quoted by La Tribune newspaper.

In order to develop microfinance for Algerian VSEs, experts have announced a new national strategy which aims to provide access to microcredit as well as supervision and help during their development.

Experts also recommended the creation of dedicated institutions for VSE financing which will introduce new financing mechanisms tailored to suit the needs of this type of company.

The experts also called for insurance against default and bankruptcy to be made compulsory, in order to lower risks and stimulate the creation of VSEs.