Algeria Country Profile

Algeria, officially the People’s Democratic Republic of Algeria, is the largest country in Africa by land area and a key geopolitical and economic player in North Africa and the Mediterranean region. With abundant energy resources, a young and growing population, and strategic proximity to Europe and sub-Saharan Africa, Algeria offers untapped opportunities in energy, agriculture, manufacturing, and trade.

  • Capital: Algiers

  • Population: ~45 million (2024 est.)

  • Official Language: Arabic (Berber and French widely spoken)

  • Currency: Algerian Dinar (DZD)

  • Time Zone: GMT+1

  • Major Cities: Algiers, Oran, Constantine, Annaba, Blida, Tlemcen

Economic Landscape

Algeria has one of the largest economies in Africa, driven largely by hydrocarbons, which account for over 90% of export revenues and a significant portion of GDP. While the country has traditionally relied on oil and gas, recent economic strategies aim to diversify the economy through industrialization, agriculture, and technology.

Key Economic Sectors:

  1. Hydrocarbons (Oil & Gas)
    Algeria is the third-largest oil producer in Africa and one of the top ten natural gas exporters globally. It has substantial proven reserves and supplies gas to Europe via pipelines through Spain and Italy. The energy sector dominates exports and government revenues.

  2. Agriculture
    Agriculture contributes approximately 12% to GDP and employs around 20% of the population. The country produces cereals (wheat, barley), olives, dates, citrus, and vegetables. There is growing interest in modern agribusiness and irrigation-based farming.

  3. Manufacturing and Industry
    Algeria has a state-driven industrial base in sectors like cement, steel, fertilizers, petrochemicals, and food processing. In recent years, the government has encouraged private sector participation and foreign partnerships in manufacturing and assembly (e.g., automobiles, electronics).

  4. Construction and Infrastructure
    The housing and construction sector has expanded significantly, supported by government programs to reduce housing shortages. Large infrastructure projects include highways, railways, ports, and industrial zones.

  5. Services and ICT
    Telecommunications, banking, education, and healthcare are growing segments. The government supports digital transformation and entrepreneurship in fintech, e-commerce, and software services.

Trade and Export Profile

Algeria is a resource-rich country and one of Africa’s top exporters, especially of fossil fuels. However, the country also imports a wide range of goods due to limited domestic production in several sectors.

Top Export Products:

  • Crude oil

  • Natural gas (LNG and pipelines)

  • Refined petroleum products

  • Ammonia and fertilizers

  • Dates and citrus fruits

  • Iron and steel

  • Chemicals and plastics

Top Import Products:

  • Food and cereals (especially wheat)

  • Machinery and mechanical appliances

  • Vehicles and auto parts

  • Pharmaceuticals

  • Electronics

  • Consumer goods

Major Trade Partners:

  • Exports: Italy, France, Spain, Turkey, China

  • Imports: China, France, Germany, Italy, Turkey, Brazil

Algeria has trade agreements with the European Union, the Arab Maghreb Union (UMA), and is a signatory of the African Continental Free Trade Area (AfCFTA), aiming to increase its role in intra-African trade.

Logistics and Infrastructure

Algeria has invested heavily in modernizing its transport and logistics infrastructure, focusing on road networks, ports, airports, and rail to support trade and regional connectivity.

Ports:

  • Port of Algiers – Main commercial port, handling general cargo and containers

  • Port of Oran – Major oil and gas export port

  • Port of Skikda – Specialized in hydrocarbons and petrochemical exports

  • Port of Bejaia – Handles both petroleum and dry cargo

Modernization projects are ongoing to increase capacity and efficiency, including Port of El Hamdania, which is under construction to become a deepwater port capable of handling large container ships.

Airports:

  • Houari Boumediene International Airport – Algiers’ main international gateway

  • Oran Ahmed Ben Bella Airport and Constantine Mohamed Boudiaf Airport handle growing regional and international traffic

  • Air Algeria and Tassili Airlines provide cargo and freight services

Railways:

  • Over 4,000 km of operational railway lines managed by the National Company for Rail Transport (SNTF)

  • Planned expansion includes lines connecting southern cities and trade corridors toward the Sahel region

  • Rail links support mining and industrial zones

Road Network:

  • Algeria boasts one of Africa’s most developed road systems

  • The East-West Highway, spanning 1,200 km, connects the Moroccan and Tunisian borders via Algiers

  • Road corridors support trade with sub-Saharan Africa through border posts in the south

Business Environment

Algeria has undergone recent reforms to attract foreign investment and diversify its economy. The government is working to improve its business climate, digitalize administrative procedures, and enhance transparency.

Recent Reforms and Key Features:

  • The 51/49 rule limiting foreign ownership has been lifted for most sectors (except strategic industries)

  • Simplified registration and licensing processes

  • New investment law (2022) offers clearer legal guarantees and streamlined dispute resolution

  • High literacy rate and skilled labor pool in engineering and technical fields

Investment Promotion:

The National Investment Promotion Agency (ANDI) and Algerian Investment Promotion Agency (AAPI) facilitate investment and offer:

  • Tax incentives for priority sectors

  • Customs duty exemptions on equipment

  • Free land in industrial zones

  • Guarantees for profit repatriation

  • Support for public-private partnerships (PPPs)

Trade with Africa

Algeria has historically focused on trade with Europe and the Middle East but is now increasing its engagement with the rest of Africa:

  • Membership in AfCFTA encourages expansion into West and Central African markets

  • Algeria is strengthening border trade infrastructure to serve Mali, Niger, and Mauritania

  • Key exports to Africa include fertilizers, cement, pharmaceuticals, and food products

  • New Trans-Saharan Highway (Algeria–Niger–Nigeria) under construction aims to boost trade with West Africa

Investment Opportunities

  1. Energy and Renewable Energy – Solar, wind, and green hydrogen development, especially in the Sahara region

  2. Agro-industries – Irrigated agriculture, processing of dates, olives, cereals, and dairy

  3. Pharmaceuticals – Algeria has strong demand and growing local production capacity

  4. Automotive Assembly – Components manufacturing and assembly for domestic and export markets

  5. Construction Materials – Cement, steel, tiles, and prefabricated buildings

  6. ICT and Startups – E-commerce, cloud services, and fintech are growing rapidly

  7. Tourism and Hospitality – Desert, cultural, and coastal tourism are underdeveloped but promising

Challenges and Risk Factors

Although Algeria offers considerable opportunity, businesses should be aware of:

  • Heavy reliance on hydrocarbons (vulnerable to price shocks)

  • Bureaucracy and slow decision-making in public institutions

  • Import restrictions and licensing requirements

  • Currency exchange controls (DZD is not freely convertible)

  • Limited English fluency in government and business (French/Arabic preferred)

Nonetheless, with reforms in motion and strong fundamentals, Algeria is increasingly opening its economy to new trade and investment.

Business Culture Tips

  • Arabic and French are widely spoken; business is often conducted in French

  • Hierarchical and formal business culture; titles and protocol matter

  • Patience is essential—decision-making can take time

  • Building trust and long-term relationships is important

  • Face-to-face meetings are preferred over virtual communication

Algeria stands at the crossroads of Africa and Europe, offering enormous trade potential, natural resources, and human capital. As the country pushes to diversify away from hydrocarbons, opportunities in agriculture, industry, logistics, and digital services are expanding.

With improving infrastructure, regional trade links, and a commitment to economic reform, Algeria is poised to become a gateway for business between North Africa and the rest of the continent. WeTradeAfrica encourages businesses to explore Algeria’s growing market and connect with reliable partners to unlock the country’s full potential.