Algeria, a new challenge for CFAO
CFAO, the leading automotive distributor in Africa and France’s overseas territories and departments has conquered the Algerian market. Bolstered by its initial successes, CFAO is expanding its activities to new technologies and health.
Algeria’s ongoing privatisation programme is attracting many investors, keen to benefit from its buoyant economy and the thirst for consumption of its 32 million inhabitants. CFAO, which has been present in the market for five years, believes that Algeria is a very promising country for those who make the effort: “The business opportunities available in Algeria are difficult to match anywhere else in the world”, stated Serge Gurvil, General Manager of Diamal, the company that operates CFAO’s automotive business. Well on the way to selling over 15,000 vehicles this year compared with 450 in 2001, Serge Gurvil expects that this figure to reach 20,000 by 2008. Diamal’s growth is sustained and consistent. 15% is forecast for this financial year alone. To maintain this growth, Daimal is investing in a new subsidiary in Oran and a major presence in Algiers, just a few minutes from the airport.
Sound knowledge of local realities
However, the managing director has a word of caution: “Don’t think that it will all just fall into your lap. The age of pioneers is over, and competition is developing at a rapid pace. Contracts are not signed by people who fly over in planes, they are awarded to companies with a local presence, which are part of the market and have sound knowledge of local realities that are often far removed from European ways of thinking. Models that work elsewhere do not necessarily apply here”, he explained.
The Algerian health sector is favourable for the establishment of Eurapharma
A situation that is not discouraging the most perceptive players. Eurapharma established a presence in Algeria, which has a significant pharmaceuticals market, at the start of the year. The fact that treatment is refunded according to a system similar to French social security, the density of its network of pharmacies and the easy access to the population all favour development. The priority for this year is to bring E.P. DIS Algerie, the local subsidiary, in line with Eurapharma standards and promote its development by concluding remuneration agreements with new laboratories.
CFAO Technologies is stabilising its presence
CFAO Technologies is experiencing a period of stabilisation. The development and computerisation of banking networks should act as a lever for sustainable growth. However, some of its positions still need to be developed, in particular with regard to cash dispensers: 5,000 are due to be deployed over the next few years.
Algeria’s imminent entry to the WTO and partnership agreements concluded with the European Union should facilitate the task.