Manufacturing companies eye Algeria following unrest in Libya

Maltese manufacturing companies are increasingly showing interest in Algeria following the collapse of the security situation in Libya, a study by TradeMalta has shown.

The TradeMalta study, aimed at providing insights into the profile of internationally oriented companies in the non-food manufacturing sector, indicated that Malta-based manufacturers focus on near markets, primarily in Europe, but are also seeking to develop new markets, especially in the Middle East and North Africa.

However, following the ongoing unrest in Libya, the study found an increased interest in Algeria, another oil-based economy close to Malta.

The study, which covered a large variety of subsectors, also revealed that the cost of shipping and freight was listed as the most important barrier to export, followed by challenges in finding customers and agents.

Furthermore, more than 85% of the study’s respondents claimed to have an export share of either below 20% or above 80%, meaning they were either small or large exporters. However, the study concluded that there is a fairly even distribution of smaller and larger companies represented among the exporting manufacturers in Malta.

With regard to access to finance, the most pressing issue was problems for clients in opening letters of credit. This was especially problematic for the experienced exporters with a large export share, according to the study.

While all respondents were keen to receive financial assistance to all export related activities, the results showed that attending and exhibiting in trade fairs is the activity for which manufacturing companies are most keen to obtain financial assistance. This was followed by assistance to travel to foreign markets.