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MADAR Holding Fuelling prosperity with diversified investment excellence

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  • MADAR Holding Fuelling prosperity with diversified investment excellence

Algeria is the fourth-largest economy in Africa, expanding 3.9% year-over-year in the first nine months of 2021 due to a strong recovery in hydrocarbon production and a surge in European gas demand, according to the World Bank. With one of the highest urbanisation rates in Africa and close proximity to European markets, Algeria is well-positioned to become a future large-scale manufacturing and industrialisation power, supported by a well-educated and highly skilled workforce

According to a World Bank report, the key to diversifying and strengthening the resilience of the Algerian economy lies in a macroeconomic policy which promotes public and private sector reform. Since 2020, the Algerian Government has taken the initiative to raise foreign and domestic investment by issuing a new Investment Law to stimulate investments in Algeria’s natural resources and extend modernisation by incentivising FDI. “I am still aware that there is a lot to do on the diversifi cation of the Algerian economy… We should not only make efforts aimed in the hydrocarbon sector. Other areas of activity, such as waste management, renewable energies, consultancy, communications, and agri-food are also called on to play a key role in the diversifi cation of the Algerian productive structure,” says Algeria’s President Abdelmadjid Tebboune.

MADAR Holding is leading the government’s diversifi cation effort, as one of the most successful and profi table public companies in Algeria, with a portfolio of investments across a range of key sectors. An acronym for the ‘Management and Development of Assets and Resources,’ MADAR currently operates nine wholly owned subsidiaries in investment capital, agriculture, agri-food, industrial production, and sport, and has a stake in ten companies ranging from the automotive and textiles industries to hotels, security, and agri-food production.

As a state-owned public company, MADAR is rational and pragmatic about which sectors it chooses to invest in and ensures that all investments align with the development policies announced by Algeria’s president. “It goes without saying that we fully comply with the strategy and vision of the public authorities in terms of nationaleconomic development,” says Mr. Charaf-Eddine, MADAR’s chairman & CEO. So, whilst MADAR’s investment strategy has a proven track record of profi tability, national needs ultimately drive it. MADAR seeks to enable projects of a certain size, where the importance of investment constitutes a barrier to entry, to succeed via increased participation in their entire value chain and an investment in their core prerequisites. 

Highlighting Algeria’s prioritisation of economic diversifi cation, MADAR has several industrial projects nearing completion in the non-woven fabrics and packaging industry and is overseeing the fi nal stages of its investments in fi nance, namely a leasing company, an insurance company, and a bank. Additionally, MADAR has recently acquired two large-scale agri-food projects, the fi rst in the production of edible oil via crushed oil seeds and the second in the refi nement and production of sugar, which are almost complete. 

Charaf-Eddine understands the importance of public companies like MADAR in fostering a strong business climate within Algeria and believes that forging international partnerships is central to this mission. “Partnerships not only allow an exchange of new ideas and innovations, but mutually maximise R&D and help us to advance the technological drive of the Algerian market,” he says.

MADAR has successfully partnered with six Algerian and foreign companies, including a 51% stake in the United Tobacco Company and a 49% stake in the Algerian-Emirati tobacco company, Staem, whilst MADAR also owns 18% of the textile company, Tayal, as part of an AlgerianTurkish partnership. MADAR is open to further strategic partnerships, particularly with leading organisations in biotech and fi ntech, that align with MADAR’s core values: equity and empowerment, community, continuous innovation, mutual trust, and social responsibility. Aligning with MADAR ensures a ‘win-win’ scenario, and the company builds its relationships upon confi dence and respect, sharing all gains with its partners. 

MADAR is also committed to the country’s social welfare and created the ‘INAYA Foundation,’ a non-profi t association to help develop and strengthen scientifi c and medical research in Algeria. MADAR participates indirectly and directly via donations to social action, community support, and education. The INAYA foundation draws its core values from those intrinsic to Algerian society and represents MADAR’s goodwill corporate culture – as a company which strives to give back to the communities that have fuelled its success.

Algeria has massive potential as a vast territory offering immense unexplored development prospects, substantial mineral wealth, and a market of more than 45 million consumers. It is thus the perfect destination for foreign and domestic organisations and companies seeking untapped potential. For Charaf-Eddine, the decision could not be more straightforward. “There are not only promising projects; the whole country is promising. Launching one or even several profi table projects in any sector of activity is possible. It is undeniable that the public authorities are doing a colossal job in this area.”

Foreign and domestic investments in steel, cement, pharmaceuticals, and agriculture have already experienced rapid success, and the Algerian Government is laser-focused on creating a business-friendly environment, with milestone investment laws and an appeals committee now in place to protect businesses’ rights and accommodate the increase in FDI.


Source : Magazine Newsweek