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ABRIDGED VERSION

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TABLE OF CONTENTS

1. Introduction

2. Background

3. Methodology

4. Summary of key findings and recommendations

5. External Environmental trends in the Algerian ELT and training market

5.1 Political

5.2 Legal

5.3 Environmental

5.4 Technological

5.5 Socio-cultural

5.6 Key external environmental trends

6. Stakeholder views and responses

Information about UK and Algerian stakeholders

6.1 Current ELT and training provision in Algeria

6.2 Perception of skills and needs

6.3 Role of vocational training

6.4 Certification and accreditation

6.5 How might UK providers meet Algerian market needs

6.6 Potential barriers and ways to address

6.7 Routes to market

6.8 Focus group results

7. SWOT analysis

8. Findings and recommendations

9. Bibliography

10. Appendices

1. Terms of reference

2. Relevant sources for routes to market

esp consulting would like to thank all those who took part in the interviews and

focus group and helped to make this research report possible, in particular the

support of the UKTI and the British Embassy Algeria.

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1. Introduction

Because of the high demand in Algeria for ELT and professional qualifications as well

as the desire to diversify education provision away from the traditional reliance on

France, there is now an opportunity for UK education providers to enter the market.

As an example, the energy sector drives the largest demand but there are other

sectors, such as banking and tourism which will, in due course, offer, potential.

This scoping study initially works with a number of targeted Algerian stakeholders

from varying sectors to clarify more specifically the demand for educational services

for public and private sector organisations. This will encompass ELT, vocational,

corporate and executive training as well as CPD. The research and scoping study will

make appropriate practical recommendations as to what is needed and ways in

which the UK can meet these requirements. Following this, a round table discussion

will take place to decide on specific actions to be taken forward between UK

suppliers and Algerian stakeholders consulted for this study.

2. Background

The research study spanned a time period between March and June 2011. The

purpose and focus of the study was to enable potential UK partners and suppliers to

have a better understanding of the views and needs of the Algerian market in terms

of ELT, corporate and professional training. The terms of reference included

understanding the current market environment and current provision, establishing

links to current employability research, preferred training delivery methods,

understanding specific skills and language needs of the region, discussion of

possible UK offerings, including qualifications, examination of possible routes to

market and practical recommendations as to how these might work as well as

understanding potential barriers.

Stakeholders interviewed are from both public and private sectors in Algeria. This

report identifies the main issues to consider against the context of the ELT and

training industry in Algeria generally. The report provides a snapshot of the industry

and the opportunities. The situation is dynamic and maximising these opportunities

demands a proactive approach from all stakeholders.

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3. Methodology

The methodology used to conduct this research study incorporated a balance of

primary and secondary research. Desk research was conducted into existing data

about the education, training and ELT industry in Algeria as well as up and coming

trends in order to gain a picture of the industry overall. Sources for this research can

be found in the bibliography section. Secondary research was through face-to-face

interviews and the facilitation of a focus group.

The following business models were used to conduct the analysis:

a) PEST analysis – this was conducted to gain a broad perspective of key

external influences impacting the ELT and training industry in Algeria from a

political/legal, environmental, socio-cultural and technological aspect.

The PEST/EL framework categorises environmental influences into political/legal,

environmental/economic, socio-cultural and technological. These factors are not

independent of each other; many are linked. As these factors change they affect the

competitive environment in which the examining body is operating. However, in turn,

the relative importance of these drivers of change and their combined impact on the

competitive environment will differ between countries. 1 Establishing factors of PEST

analysis relies on desk and primary research of the individual influences.

b) SWOT analysis – this model was used to help draw conclusions from all the

qualitative data collected. The SWOT has been conducted from a UK

perspective i.e. ascertaining the strengths and weaknesses of the UK in

relation to the opportunities and threats posed by the Algerian market.

1 Johnson & Scholes, Exploring Corporate Strategy, Seventh edition, 2005

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A SWOT analysis summarises the key issues from the business environment and the

strategic capability of an organisation that are most likely to impact on strategy

development. This can be used as a basis against which to judge future strategic

choices. The aim is to identify the extent the strengths and weaknesses are relevant

to, and capable of dealing with the threats or capitalising on the opportunities in the

business environment.

Against this external context, interviews were conducted with over 20 stakeholders in

the UK and Algeria using the terms of reference, interview questions and focus group

format in Appendix 2. These terms of reference and formats were created by the

consultant in collaboration with the UKTI.

Interviews were a mix of face-to-face interviews, teleconferences and one focus

group all conducted in Algeria as well as several with UK potential partners prior to

the site visit. Whenever possible, interviews were conducted in person. No data was

collected via e-mail. All interviews and the focus group were conducted and recorded

in confidence.

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Terms of reference were explored with the following stakeholders; most of them

decision makers with high authority and responsibility:

UK Stakeholders Interviewee Position

Alligan Consulting Graham McAvoy Director

Business English UK Sarah Wang Manager UK Special Interests Groups

Training Gateway Amanda Selvaratnam Head of Corporate Training York University Director Training Gateway

Algerian Embassy UK Ali Kessaali Minister Plenipotientiary

TVET UK Matthew Anderson Executive Director

London Corporate Training Ltd

Ian Mann Managing Director

Academy of English Studies, Folkestone, Kent

Managing Director/Co-Owner

Algeria Stakeholders Interviewee Position

MDI Business School Management Development International Institute

Brahim Benabdeslem Said Cheradou

Directeur General Secretaire General

Forum des Chefs d’Enterprises

Hamou Bellache Mouloud Hedir

Conseiller Economique Conseiller

British Council Algeria Jeremy Jacobson Director

UKTI Algeria Barry Steen Director of Trade and Investment

European Union Klaus Koerner Bernard Segarra

Conseiller Attache de Cooperation

SEAAL Fatima Belarbi HR Director

Ministry of Higher Education Mr Saidani Director of Co-operation

Ministry of National Education

Mr Siahmed Deputy director of co-operation

HSBC Naziha Taleb-Hacine Manager HR

Intuition Language School Sofiane Chaib Managing Director

British Embassy Algeria Martyn Roper British Ambassador

FOCUS GROUP Focus Group Attendees Company and position

KPMG Zineb Mahtout HR Manager

Citi Bank Djamel Messai HR Head

Cevital Rabea Corso Training manager

BG Group Athmane Ouadah HR Manager

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4. Summary of key findings and recommendations

This study has revealed the following implications and recommendations for potential

UK partner training providers and awarding bodies summarised below. Please note

that it is important to read these in light of the full external industry environment and

the SWOT analysis within the wider report as well as the fuller findings from the

stakeholder interviews and focus group consultation.

A) FINDINGS: CURRENT ELT AND CORPORATE TRAINING PROVISION IN ALGERIA Basic and general English:

Majority of private sector companies operating in Algeria (multi-nationals) buy in training from local providers – this is often subsidized through the government training incentive scheme where 1% of company turnover must either be paid as tax or invested in training

Quality varies – over-reliance on “system type” traditional teaching methods Public Algerian companies state basic ELT needs for staff but insufficiently

catered for Teachers are predominantly Algerian and methodology can be quite

traditional In primary and secondary school English is taught but quality varies and as a

result the need for ELT at company entry level is very high Business English

Higher levels are not sufficiently catered for For higher management business English tends to be provided one-to-one None or very little business English group provision None or very little in terms of sending employees abroad Lack of customized and tailored training linked to specific company needs

Management training and soft skills

No CPD system yet but would like to introduce Small private SMEs create their own standards for management capabilities

and skills; an emerging association for guiding principles for SMEs Large gap between skills of graduates and employability needs Companies rarely measure the impact of skills or management training Management training mainly provided through private Algerian business

schools in French or through sending staff to France or occasionally Canada and other European countries, but not to the UK

Length of training short and intensive and face-to-face delivery preferred Coaching and soft skills only catered for if requested by a company

Lack of regulation in training and ELT industry generally

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B) FINDINGS: PERCEPTION OF SKILLS AND LANGUAGE NEEDS IN ALGERIA English language training:

High demand in companies, especially multinationals Seen as crucial for effective, competitive business Ideal is for Algerians to speak English in the same way they speak French

and Arabic More training of teachers is needed, especially at primary level Need high quality ELT at primary and secondary school

Management skills

Strong pressure for big multinationals to improve management and communication skills

Algerian SMEs more focused on regulations, compliance and processes for their business over training needs

Second to ELT is the need for leadership, communication and management skills as well as project management, time management and team work

Technical and professional skills highly valued and training also needed for this i.e. finance (increasingly needed in English), industry specific skills

Management skills needed at all levels Graduates are not ready for employment and lack these skills – marked gap

between education and requirements of labour market Trainers need training and sharing of best practice

Soft skills

Leadership, communication, working as a team Customer focus and awareness becoming more important for public

companies too Basic interview skills needed Effective and competent communication skills highly prized Distinct lack of provision in this arena

Huge need generally because of the increase in university numbers, economic changes and shifts – see full external analysis

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RECOMMENDATIONS: PERCEPTION OF SKILLS AND LANGUAGE NEEDS English language training See recommendations for current provision of ELT (A) but also:

1. Focus on ELT teacher training at primary and secondary levels – try and get engaged with large scale projects and leverage government initiatives (note – please see external analysis and SWOT for further details – also this is more relevant for larger providers or organizations that can engage successfully with governments)

2. Involvement in supporting any initiatives for opening an international school – provision of curriculum support, infrastructure and teacher training (see above)

Management skills

1. Collaborate with local private business management schools to support them, their trainers, guest lecturing – they will invest in this if they see the value added

2. Create relationships with private and public companies through links with

relevant bodies such as the UKTI, British Embassy, EU to offer tailored management programmes to staff

3. Find opportunities within current government initiatives (see fuller analysis) to provide training for Algerian university lecturers to deliver management training and support to graduates – government will fund training exchanges, support with Algerian phD students who want to enter into the training field and so on

Soft skills

1. Provision of short focused courses either in collaboration with private providers or direct to companies delivered in local conference centres

2. Through encouraging local examination centres (through existing local language training providers) to offer programmes that prepare candidates for relevant language, employability and vocational qualifications – although problematic to get qualifications recognized by Algerian government, international qualifications are valued and can be offered anywhere and these would be highly regarded

3. See similar for management skills for (A) Generally, guidance on how to set up a language school locally would be helpful – i.e. local partners, procedures and how to set up an operation – please see also E and F as well as external environmental analysis

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C) FINDINGS: ROLE OF VOCATIONAL TRAINING AND QUALIFICATIONS IN ALGERIA

Vocational training often interpreted as professional training (meaning law or accountancy) or an internship related to a specialism

In general vocational training is behind other countries and is lacking in regulation and coherent standards

Purely vocational qualifications without a degree are not significant but are still seen as important

Sector specific skills such as mechanical or plumbing are needed

Internal technical or industry internal training is generally not certified or regulated

Quality assurance schemes are lacking but gaining in momentum through the private vocational sector

Vocational qualifications tend to be seen only as a technical competence

Vocational qualifications that are internationally recognized are a very new idea

RECOMMENDATIONS: ROLE OF VOCATIONAL TRAINING AND QUALIFICATIONS

1. Work with private vocational providers to support quality assurance and preparation for qualifications that are internationally recognized and/or accreditation (as too lengthy and bureaucratic to get vocational qualifications recognized at national level but because of labour mobility international certification welcomed)

2. Support with regulation of the industry through provision of best practice and standards

3. Training provision for vocational skills such as plumbing (language may be issue but could perhaps be catered for alongside)

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D) FINDINGS: CERTIFICATION AND ACCREDITATION IN ALGERIA

Varied responses to the differences between certification, accreditation and qualifications in Algeria and their currency

Quality of training itself more highly regarded over certification or accreditation thereof; however there is no standardization as to quality

In-company training can lead to internal or external certification which is not formally recognized

Getting UK qualifications recognized by Algerian government through Education ministry would be a long bureaucratic process

No UK awarding bodies are present in Algeria

Internationally recognized qualifications seen as important by companies

Currently corporate training is not internationally certificated or internationally recognized – if it were this could be a key differentiator. It is currently certificated and branded by local providers, if at all

There are possible opportunities to encourage UK accreditation but may be problematic to get Algerian recognition

UKTI would support UK awarding bodies wishing to focus on Algeria It’s the trainees who would likely be the most interested in international

certification for corporate training Academic qualifications from UK universities are admired An internationally recognized qualification is something that was seen as

desirable and that the market would embrace this, especially in specialized areas such as business English (spoken and written), customer service, tourism (cross-over to vocational). Associations such as CIM are also not known here so there may be further opportunities with regard to supporting more standardised professional training

RECOMMENDATIONS: CERTIFICATION AND ACCREDITATION

1. Opportunity for UK awarding bodies to enter the market with relevant

internationally recognized language, vocational and employability qualifications and to support local training providers (utilize support of UKTI etc)

2. Offer UK qualifications to private companies to help create a gold standard for ELT, soft skills and professional skills

3. Provision of accreditation of existing training given in companies or business schools

4. Opportunity for university partnerships with local private business schools or universities (government and business schools v keen – see further analysis)

5. Enabling Algerian students to study at UK university for part of degree programme (funded through Algerian government for selected students)

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E) FINDINGS AND RECOMMENDATIONS: HOW MIGHT UK PROVIDERS MEET ALGERIAN MARKET NEEDS?

1. Algeria is far more ready now for new ways of training and combining

language with management and soft skills – 10 years ago basic English was sufficient but not any longer

2. Private companies are willing to pay for high quality external training that they are unable to source locally, especially management training

3. There are more parents who can pay for young people to do cultural language trips to the UK but there is lack of awareness as to what the opportunities are. They need recommendations and support as to which providers to use. Business English UK or English UK can help with this.

4. Different people need different UK programmes i.e. teenagers vs young adults or older people so guidance is needed on which providers to use – again Business English UK or English UK

5. Local ELT teachers are Algerian and there is strong demand for native speaker ELT trainers – it is possible for UK trainers to delivery training on very short-term contracts so this would work well for focused and specialised business English courses. The other opportunity here it to provide teacher training for these teachers by sending over UK teacher trainers.

6. Better to specialize in specific sector and UK best practice support for Algerian firms

7. Sending top management for business English courses in UK combined with management skills – there are language and cultural benefits from this

8. Ministry of National Education would like to send teachers from middle schools to the UK for several weeks to learn and practice English. Could Training Gateway or TVET help with this initiative?

9. New international school to be opened in Algeria – prep for IB – would like cooperation with British School offering IB – need support with English. Opportunity for collaboration with a British school which has expertise and experience in starting an operation in the MENA

10. Support with curriculum training for teachers – possibly through a bigger initiative with a larger UK partner organization

11. Through smaller decentralized projects where there is a spark of interest which can be nurtured so it’s important to identify these sparks and make an impact – it will be important to work closely with the EU and local partners to identify these – see fuller report

12. If a language school or training provider got a contract with an Algerian company and sent trainers over and the company liked the service and offering then the UK company could offer courses to which the Algerian company are more likely to send employees or executives

13. There may be interest from the private vocational sector for UK vocational qualifications – equivalents of NVQs

14. Offering combination of soft skills and language could be strong and taken up

15. There is marked interest in becoming examination centres for UK awarding bodies by one of the private language training providers Intuition and they have the right premises and facilities to be able to do this

16. Partnership with British training provider or university

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Implication for UK suppliers: The UK has a very positive image in Algeria and Britain is seen as the leader in English language. There is a perception that the government and the British Council should be doing more to promote English teaching as they did in the past. People are eager to learn English and it’s seen as an essential tool for business. The two main private language training providers have cornered the market to some extent because of the timing when they started. There is a heavy reliance on traditional teaching systems and methodologies. This approach tends to not be used in the UK but is popular in emerging markets and is embraced by the Algerian market, possibly because there is not anything else on offer. One of the reasons these traditional systems work so well in Algiera is because they can be very oral and interactive and this suits people well. Teachers are trained through to deliver a system. Teachers are Algerian. They are taught how to use the system which means trainers explain to students how to use the system themselves – very autonomous. Learners are involved in the learning and the trainer, in effect, becomes a coach. However, the vast majority of these learners tend to be beginners and elementary as well as young people who use language learning autonomously. This approach, therefore, is not necessarily a solution for those wanting more integrated business English and management training. One can also argue that a combination of interactive training methods between trainer and student would be seen as best practice. In the case of the Algerian government possibly sponsoring the sending of teachers to the UK, it is crucial to find the right university partner. There are numerous benefits for this kind of initiative in terms of technology and knowledge transfer and cultural intelligence. Any kind of initiative to open a British School in Algeria would be dependent on an Embassy relationship. It would not possible to sign a partnership contract directly with a school in Algeria. The Ministry for Higher Education stated that an initial MoU for a pilot would be supplied though acknowledged that ministries can take a long time to do this. Apparently there are three projects to have international schools from primary up to IB, the first in Algiers and then in other Algerian cities.

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F) FINDINGS AND RECOMMENDATIONS ON POSSIBLE ROUTES TO MARKET

1. Getting a UK provider operating in Algeria approved by the government so

that they can be used via the 1% incentive scheme – this would require a lot of local support and 50% of the workforce employed would have to, by law, be Algerian

2. Partnership with UK university – these could be very successful – support needed from Training Gateway and/or TVET as well as on the ground in Algeria to identify the best partners

3. Support with teacher training and curriculum development - larger providers and stronger linking in to government initiatives – a lot of drive needed

4. Support with new initiatives to open international schools 5. The British Council would definitely consider doing something in partnership

with a UK institution but have not yet explored this fully as language school here would have the status of a business and the bureaucracy associated with that – this needs to be examined further – see point 1

6. There are no effective agency networks in Algeria and an opportunity to create one because of the desire to go to the UK to study rather than France. The British Council would like to be involved in creating a network or supporting one – agents in Algeria at the moment are promoting English courses through travel agencies

7. Set up a language operation in Algeria through a partnership – The British Council could support this through helping identify/recruit teachers from their network, giving a type of seal of approval, checking standards that they would normally guarantee in their own teaching centre so that the language school could be associated with the British Council in some way

8. Opportunity through small network of private vocational schools rather than pushing things through the ministries

9. A need to look for alternative ways of getting things into Algeria – it is possible to find things that spark an interest and can be pushed through as the ministries and MoD are keen to improve things

10. Partnerships are crucial, the local partner does not have to be a training provider – they may have a suitable building for study, for example

11. Being visible at local events where the right people are to target and presenting in a more creative way

12. Collaboration between private ELT provider or business school and UK partner to support delivery of management or specialist programmes

13. For private business schools to partner in some type of exchange programme with UK partner or university

14. Possibility for the second year of a 2 year Masters programme to be carried out in the UK through a partnership with a private business school

15. Training trainers via short-term contracts between UK provider and Algerian 16. Recruitment and/or talent management fairs – important to create

relationships

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Implications for UK suppliers

There is clearly a window of opportunity for the UK in terms of what it has to offer across the whole range. Algerians are quite willing to pay for a premium product but won’t do business without a personal relationship and that requires time and energy and being more pro-active in creating this relationship. Many suggestions were made – it is not clear how feasible some of these might be in practice and it will be essential for any potential UK provider to follow up diligently and over a period of time as well as being highly visible with Algeria and creating strong relationships in the region. The various barriers that exist are no more difficult, in essence, than barriers in some parts of central Europe in the nineties and those forward thinking companies and providers who are also able to invest time and effort will definitely benefit from first mover advantage in terms of the opportunities in the Algerian market.

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G) POTENTIAL BARRIERS please also see full external analysis and SWOT to understand reasons for these barriers

1. Companies wanting to use their 1% incentive to spend on training must do so

using training providers that have been approved by the Algerian government – external provision varies in quality

2. Those companies which are approved by the government must satisfy various strict criteria which may present a challenge for a foreign provider

3. It would cost too much to have native English speaker teachers 4. Most of the large multinationals use their own internal management training

and “buy” ELT externally and there is a gap between the two 5. Lack of follow-up generally and things can be very slow to happen

6. Needs analysis in public sector companies seems very time consuming and bureaucratic

7. It may take a long time for training decisions to be made 8. Support needed for appropriate selection criteria for teachers to be trained as

they need quite tailored teacher training 9. Decisions may take a long time to be made and bureaucracy may be a hurdle

10. There is a lot of interest and request for, say, ELT and high numbers of learners mentioned but very difficult sometimes to get meetings with key decision makers

11. Any foreign supplier wishing to set up in Algeria i.e. a language school must have an Algerian partner or counterpart

12. Too much ministry bureaucracy with any official project – follow-up and any kind of project management painfully slow or non-existent

13. Personal rivalry can inhibit work and professional conduct within the ministries

14. System here was socialist and centrally planned and current people in power don’t necessarily have the mindset to change

15. Algeria is interested in what the UK has to offer but there is a lack of awareness generally about what is available and UK providers don’t necessarily have a clear view of how to get into the market

16. Algerians won’t do business with companies they don’t know so being visible and creating partnerships and relationships is crucial

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Implications for UK suppliers There are, naturally, a number of barriers within Algeria, some of them substantial. However, most of them be addressed and it is a matter of identifying the easiest wins first in terms of market entry. These will be a combination of the following:

Clear and consistent follow-up to this scoping exercise Introductions between UK and Algerian stakeholders through the round table

discussions, through creating stronger visibility and awareness on both sides Identifying further opportunities for selected or supported UK suppliers to become

more visible in Algeria Through creating stronger relationships identifying small, regional projects for

collaboration and engaging concrete support from EU and UKTI/British Embassy Brokering partnerships for specific projects such as teacher training provision and

leveraging existing initiatives Through providing fresh new approaches to training via more interactive means

i.e. holding “taster” sessions, in-country seminars and being visible at any kind of event that their target operates in etc