Tool in fight against precariousness, the microcredit has allowed the impoverished to have access to improved living conditions by creating their own income-generating business.
Launched for the first time inAlgeriain 1999, the microcredit has allowed the creation of more than 150.000 activities in different sectors.
It has not seen, in its original formula, the desired success by government due to lack of support in the early phase of maturing and monitoring in project achievement.
This finding was noted during the international seminar held in December 2002 on the “microcredit experience inAlgeria”.
The recommendations made during this reunion of microcredit experts have led to the creation of a specialized institution called ‘National Agency for Microcredit Management”, created by the executive decree number 04-14 of 22nd January 2004.
An achieving instrument of the government’s policy for the fight against unemployment and job insecurity, the National Agency for the Management of the Microcredit missions are:
- Managing the microcredit mechanism in accordance with the legislation and regulation in force ;
- Supporting,advicing and assisting the beneficiaries in the implementation of their activities;
- Granting interest-free loans;
- Notifying the beneficiaries whose projects are eligible to the device of the aid granted to them ;
- Monitoring the activities realised by the microcredit mechanism’s beneficiaries ensuring compliance with the book of specifications that connect them to the agency and assisting them, if necessary, with the institutions and agencies concerned by the implementation of their projects
As such, the agency is notably put in charge of:
- Establishing a database on the activities and on the beneficiaries of the device
- advising and assisting the beneficiaries of the microcredit during the financial set-up and the credit mobilization ;
- Maintain ongoing relationship contact with the banks and the financial institutions within the scope of the projects’ financial setting-up, the implementation of the financing plan, and monitoring the implementation and operation of projects and participate in the recovery of the outstanding debts on time;
- Concluding agreements with any organization or institution aimed to conduct, on behalf of the agency, information campaign, actions of awareness and support to the microcredit’s beneficiaries in the implementation of their activities.
ANGEM is represented, at local level, by 49 agency of wilaya spread throughout the national territory, including two agency for Algiers. This coordination network is supported by accompanying cells present at the dairas level..
Aid and benefits granted to the microcredit’s beneficiaries:
- Support, advice, and technical assistance is provided to the beneficiaries by ANGEM, for free, within the scope of the implementation of their activities :
- The bank loan is granted with a low interest rate supported by the beneficiaries (from 5 to 20 % of the commercial interest rate is supported by the public revenue ;
- An interest-free loan, equivalent to 29% of the project overall cost may be granted if this later is does not exceed 1 000 000 DA
- For the purchase of raw material (working capital) the interest-free loan is fixed at 100% of the project’s overall cost which does not exceed 100 000 DA.