Algeria has a population of 34 million, 12% of whom are estimated to live below the poverty line. The country derives significant revenues from oil, which have stimulated economic growth and development over the last ten years. However, the development of a strong private sector and a diversified economy has been hindered by a number of factors including political turmoil, lack of capital, administrative barriers, inadequate infrastructure and limited access to information technology.
Orascom is a leading mobile phone operator in Algeria. It currently has 14 million mobile subscribers. Established in 2001, Orascom was the second mobile phone company in Algeria to be granted an operating licence. At this time, there were only 80,000 mobile subscribers in Algeria, serviced by the state owned operator.
When CDC, through its fund manager Actis, invested in Orascom in 2004, the number of mobile users in Algeria had risen to over one million. Still, Algeria had one mobile phone penetration rates in the world. Actis’ investment was used to complete Orascom’s licence payment and to fund further expansion of the network and improved infrastructure. By the end of 2007, the number of mobile users in Algeria had risen to around 28 million.
Oracom Algeria is recognised in North Africa as an environmentally and socially responsible firm, and has been ISO9001 (Quality Management Systems) and ISO14001 (Environmental Management Systems) certified.
The investment from CDC, through Actis, has helped to attract further commercial investment in what is widely considered to be a risky political environment.
