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AfricaNovember 7 2005

Oil revenues aid recovery

Algeria is working hard to recover from years of civil war. Its twin aims of social reconciliation and fiscal reform include restructure of the financial services sector. James Eedes reports on progress.
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Late in September, Algerians voted overwhelmingly in favour of a deal to offer amnesty to all but the worst perpetrators of atrocities committed during the north African country’s decade-long civil war throughout the 1990s. Despite protestations from human rights campaigners, who said the move simply papered over a wrenching part of the country’s history, the referendum marked another tentative step towards normalisation.

Sustained relative stability has put Algeria back on the map, with immediate investment opportunities available in the hydrocarbon sector and, shortly, a slew of other opportunities expected on the back of a massive public investment programme. But peace is fragile and is not helped by social tensions, which are being exacerbated by high unemployment and sporadic acts of terror by Islamic fundamentalists.

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