Development of clusters in the south region of the Mediterranean

Development of clusters "Jewels of Batna" and "Constantine's brassware" within the framework of the regional project of the UNIDO "DÉVELOPPEMENT DE CLUSTERS DANS LES INDUSTRIES CULTURELLES ET CRÉATIVES DE LA, financed by the European Union and the Italian Cooperation and headed by the minister of the industry and of appearances.

1-Methodological approach of the project

The project approach is unique in that it seeks to introduce the concept of clusters - a proven methodology for increasing the competitiveness of small and medium-sized enterprises (SMEs) within a given value chain - in the cultural and creative industries (CCI); this could represent a great opportunity for inclusive and sustainable industrial development, as well as for job creation in the southern Mediterranean countries.

2-Objectifs generals of the project

The project tries to demonstrate that clusters in the cultural and creative industries can contribute to the economic growth and to the job creation.

In every country, two promising experimental initiatives will benefit from activities of strengthening of their capacities, from modernization and from expansion, in particular in the development of new products and services. In Algeria, the selection concerned to Cluster Bijoux in the region of Batna and that of the Brassware in Constantine's region.

The project will subject plans of replication of its activities to the national governments, and is going to create links with financial institutions and other partners in the development.

Capacity building institutional to share the knowledge and increase the national and international expertise bound to the ICC and to the development of clusters.

3- Implementation of the project

Operations for the development of the two clusters were started in March 2015 with the partners of the two clusters,

The activities will be led as well to the level regional as national, without specific budgetary allowance for every cluster. Besides, a particular attention will be granted to the establishment of business links between the institutions of support for the clusters of the Mediterranean Sea of the South and the European Union as well as between the international buyers (retailers and manufacturers) and the local suppliers, and it to increase a long-lasting supply. The links between the clusters of the region the South of the Mediterranean Sea will be also promoted.

Besides, the communication, the integral part of the project, will aim at spreading the initiative in a large number of key players. The efforts of the project will be strengthened by a comprehensive strategy, which will inform, will promote and will make sensitive, while assuring an effective support for clusters selected in their activities of access to the market.

4-The two clusters pilots in Algeria

The selection to benefit from the assistance of the UNIDO, made by the national committee of piloting of the project, co-chaired by the UNIDO and the Ministry of Industry and Mines, in November 2014 allowed to hold clusters two pilots in Algeria, all were presented by the Chambers of Crafts Trades (CAM):

Cluster Bijoux de Batna

Cluster Brassware de Constantine

Specific objectives for both clusters pilot:

After an initial cartography of clusters and value chains of the cultural and creative industries ( ICC) in Algeria and following a transparent process of selection through a " call to demonstration of interest ", the project aims at supplying a technical support in the selected clusters:

Selected clusters will be strengthened through the implementation of UNIDO cluster methodology and business linkages and the application of the organization's ICC strategy in cluster enterprises.

The selected clusters will benefit from multidimensional assistance for market access activities, also through partnerships with public and private entities.

Phase of diagnosis, creation of a common vision and development of an action plan for each pilot cluster:

The next stages of the project include, for the coming year, an analysis of value chains and an analysis of the international market to ensure the development of these two pilot cases in Algeria. The analysis will allow:

Establish a cluster diagnostic that will be presented at the first meeting of each pilot cluster.

Identify strategic options for companies and artisans in each pilot cluster

Develop a cluster action plan that will be implemented through a participatory process among all cluster stakeholders such as companies, support institutions, funding institutions, training centers, and universities.

To elaborate an analysis of the design and the quality of the products and the upgrade and the improvement of the techniques of production.

Artisan’s Tax Guide

Support Infrastructure for Crafts

It is the management and animation of 81 houses and craft centers, made progressively operational since the year 2010, particularly in the field of the direct exploitation of the professional premises of these spaces by artisans for the production, training and marketing of their products.

In this context, year 2017 saw the distribution of 893 premises for the benefit of 992 artisans for the exercise of their activities and the marketing of their products, knowing that it is the continuous operation, which is going to widen for the benefit of other professionals.

In addition to their exploitation by artisans in the field of production and marketing, these infrastructures are also used to receive events and craft exhibitions, study days and for-profit seminars for projects.

It is to be indicated, that the credits assigned to chambers to assure the management and the animation of 81 infrastructures (houses and centers of crafts), amount in 2018 to 58.000.000 DA.

Customs tariff for traditional handicraft products

For the first time, the products of traditional crafts are classified in the Algerian customs tariff. Before, handicrafts were classified in the tariffs of other industrial products and could not be distinguished.

Applicable since September 18, 2016, the new tariff is now 10 digits, the old tariff contained only eight. The purpose of this reform is to provide a better framework for foreign trade.

The customs tariff, which is a commodity nomenclature with corresponding numerical codes, was coded at eight digits but covering several products at a time. Thus, for the sake of precision, the customs administration opted for the identification of more products with more coding, from 8 to 10 digits. The new structure thus has 15,946 tariff subheadings with the 10 digits, against 6,166 subheadings with the 8 digits.

The classification of craft products in the customs nomenclature determines the duties and taxes they will have to bear upon arrival (customs tariff). It will also make it possible to establish precisely the export and import values of handicraft products. This tariff now allows the possibility of modulating customs duties and taxes according to the nature of the product.

The current tariff contains a hundred tariff code of handicraft products. As an example, here are some customs tariffs of handicraft products:

SPL local production system