The country has a young, and vibrant socio-economic profile with a GDP per capita of 13,000 USD, and a strong trend towards urbanization. Going forward, this will act as a catalyst for the increased demand of consumer goods and services.
Algeria is also rich in natural resources, as it has some of the largest shale and natural gas reserves, and mineral deposits in Africa. It also boasts one of the highest rates of insolation worldwide, and has highly sophisticated infrastructure throughout the country. Working alongside these assets is the strong political drive for economic reforms, which aim to diversify the economy from hydrocarbons, to facilitate private sector development as well to accelerate privatization. Infrastructure spending has been nearly 500 billion USD in the past ten years and will amount to another 220 billion USD in the next three.
In despite of these promising trends, available capital remains limited in the form of traditional bank loans and joint ventures. These offerings need to be expanded to successfully deploy future economic expansion projects, which is where we saw an opportunity.
Tell is actively working on offering an Algeria Growth focused fund, which will be launched in the near future. The fund will leverage all of Tell’s capabilities and investments to create long-term sustainable value for all stakeholders in the fund.
The fund’s strategy is a macro-play on Algeria as a country with a highly favorable socio-demographic profile characterized by: a young and well-educated population; a large relatively rich and growing middle-class; increasing consumer spending; and, a massive urbanization drive that is expected to continue. Algeria is also a country rich in resources undergoing key reforms that: offers a large natural-resources base with access to affordable energy; nearly half a trillion USD of infrastructure investments in the past decade; a growing private sector and revival of the public sector privatization process; and, a stable environment attractive for investments.
The fund’s focus derives directly from the above themes focusing on: consumer focused industries and services; food and agribusiness; the new economy; healthcare; and the country’s natural resources and energy assets including mining, renewable energy, chemicals, and industrials.