Cosider's Path to International Prominence: Overcoming Challenges and Seizing Opportunities

Development and Diversification

Cosider was established in 1979 as a joint venture between the Algerian public company SNS and the Danish group Christiani & Nielsen. It became fully owned by SNS in 1982, gained autonomy in 1988, and was transformed into a joint-stock company in 1989. The company's significant growth began in 2010 when it became an independent group under the National Investment Fund. Today, Cosider has 10 subsidiaries specializing in public works, civil engineering, hydraulics, energy transportation, and agriculture, establishing itself as a key player in Algeria's economic development.

Economic Recovery and Growth

As the Algerian economy recovers from the impacts of the COVID-19 pandemic, there has been a notable resurgence in public works activities, largely driven by government contracts. For Cosider Group, these positive trends translated into outstanding performance in 2023. The company reported a total activity of 188 billion Algerian dinars ($1.38 billion), up from 182 billion Algerian dinars ($1.28 billion) in 2022. Additionally, the company saw increased added value and operating results before tax by 6% and 20%, respectively. The workforce also grew from 35,400 in 2022 to 36,000 in 2023, reflecting Cosider's commitment to expansion and job creation.

Current Status and Challenges

Despite its extensive operations, Cosider ranks 115th among the top 500 companies in Africa, trailing other Algerian companies such as Sonatrach and Cevital. The group's modest ranking can be attributed to intense competition within the construction sector and economic fluctuations in the region. A recent ranking by Jeune Afrique magazine showed that other prominent Algerian companies like Sonelgaz, Mobilis, and Air Algerie also faced challenges, indicating a broader trend affecting Algerian companies.

Strategic Path Forward

To improve its ranking and become a major player in Africa's construction industry, Cosider must adopt several strategic measures. Investing in advanced technologies and sustainable practices will enhance efficiency and appeal to environmentally-conscious clients. Strategic partnerships with international companies can provide access to new markets and expertise, facilitating Cosider's expansion beyond Algeria. Adopting new technologies will significantly reduce construction times, increase revenue, and elevate the company to the level of top regional and global firms. By embracing advanced technologies, forming international partnerships, and focusing on high-value projects, Cosider is well-positioned to enhance its standing and significantly improve its ranking among Africa's top companies. This strategic approach will ensure that Cosider not only strengthens its market position but also contributes to the overall development goals of Algeria and the African continent.

International Expansion and Strategic Resilience

Cosider Group's commitment to quality, innovation, and sustainable growth should be evident in its extensive portfolio and strategic vision. By investing in its operations, training programs, and modern technologies, Cosider can significantly reduce construction times. It is unacceptable that projects in Algeria take 18-24 months, while the same projects are completed in the Middle East and China in 6-8 months. Embracing new technologies will not only increase revenues but also elevate the company to the level of top regional and global firms. Cosider can no longer rely on outdated methods; it must adopt a modern approach to remain competitive. Quality, innovation, and strategic vision will undoubtedly contribute to building a clear strategy for international expansion, especially in Africa. Many African countries lack basic infrastructure such as roads, dams, and utilities, providing significant opportunities for Cosider. Adopting the Chinese model of exchanging construction services for natural resources like oil, gas, and minerals could be a viable strategy. Flexibility in generating revenues from international projects will be crucial, allowing Cosider to adapt to diverse economic environments and customer needs. Cosider should expand internationally and seek projects in Africa and beyond. If Cosider becomes too dominant in Algeria, it could stifle private companies, which also deserve opportunities in state projects to create a profitable public-private dynamic. This will allow private companies to grow and eventually invest and create jobs. Cosider should also avoid the pitfalls faced by the National Well Services Company, another Algerian company that initially achieved international success but failed to maintain momentum. The National Well Services Company drilled 30 international wells—three in Tanzania, 16 in Oman, and 11 in Libya—but could not sustain these successes. By learning from these experiences, Cosider must maintain a continuous presence and build long-term relationships in international markets.

Innovation in Construction and Aesthetic Excellence

Cosider must innovate not only in its methods but also in the aesthetic quality of its infrastructure. The company should aim to create architectural masterpieces that enhance its reputation. Drawing inspiration from remarkable buildings in China and the Middle East, Cosider should move away from drab, gray cement structures. By incorporating creative designs, Cosider can reflect the identity and beauty of cities and neighborhoods, ultimately improving public perception and marketability.

Political and Institutional Support

For Cosider and other Algerian companies to thrive internationally, President Tebboune's administration must develop and modernize legal and investment frameworks. One of the most important tasks for President Tebboune in his second term is to adapt these frameworks, making it easier for Algerian public companies to export their services. Cosider should also establish partnerships within African countries. The roles of ambassadors and economic attachés should be redefined, with a focus on individuals with strong backgrounds in economics and commerce, preferably graduates from prestigious economic and business schools. They should be given clear, measurable goals with specific performance indicators, reviewed annually.

Institutional Development for International Expansion

Establishing an international division within the top 20 Algerian economic companies, or creating a national body like the "International Directorate of State Companies," could facilitate and enhance international expansion efforts. This body would manage companies with annual revenues exceeding $100 million, providing the necessary technical and legislative knowledge for international operations. Such initiatives would significantly bolster Algeria's global economic presence, transforming it into a major provider of high-quality services in construction, agriculture, and petroleum services. Another way to modernize the company is to open its capital and list it on the Algerian stock exchange. This would allow the company to quickly raise new funds without relying on government aid. The state could, of course, retain a majority stake, but opening 20 to 30% of the capital would provide significant liquidity, helping Cosider grow and develop with its own funds. By embracing advanced technologies, forming international partnerships, and focusing on high-value projects, Cosider is well-positioned to enhance its standing and significantly improve its ranking among Africa's top companies. This strategic approach will ensure that Cosider not only strengthens its market position but also contributes to the overall development goals of Algeria and the African continent.

Conclusion

President Tebboune, during his second term, must combat outdated practices and ideas by appointing a new team capable of facing these challenges— a young team with strong technical backgrounds and limitless imagination—to lead Cosider. Setting the necessary performance indicators for the success of this leading national company is essential, and leadership teams should be evaluated based on results. The results should be transparent and published annually. Cosider should expand internationally and seek projects in Africa and beyond. There is much for President Tebboune to accomplish during his second term, but I am confident that he can rise to the challenge and position Algeria and its companies among the leading nations and companies in the world.