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ALGERIA.. HUGE ECONOMIC POTENTIALITIES THE GATEWAY TO AFRICA

Syed Turab Shah by Syed Turab Shah
August 5, 2025
ALGERIA.. HUGE ECONOMIC POTENTIALITIES THE GATEWAY TO AFRICA
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Algeria, Modernity and Partnership with the World:
Under the leadership of President Abdelmadjid Tebboune since the end of 2019, Algeria has achieved significant accomplishments in the path of political reform, modernization of state structures, and comprehensive, sustainable development. It has also restored its prominent role on the international stage by strengthening and diversifying cooperation and partnerships with various countries and regions.

Modern infrastructure and huge economic wealth:
Algeria ranked as the third economy in Africa with a Gross Domestic Product- GDP around 270 billion dollars in 2024. Positive indicators such as: Rate of Growth 4.1%, Foreign Currency Reserves 70 billion USD, total exports around 70 billion USD Exterior Debt less than 01 billion USD, with mega investment projects, Algeria expect to achieve 400 billion USD in 2027.Algeria has large modern infrastructures in highways and railways, 36 commercial airports and 11 seaports, 63 universities and 48 supreme schools.

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Huge resources of energy and mines:
At the African level, it is first in gas production (137 billion m3 annually) the tenth in the world, export more than 50 billion m3, reserve (4.5 trillion m3), third in oil production (1 million barrels per day) and in reserves (12 billion barrels).
Great mining wealth, the Algerian biggest group of energy- Sonatrach is launching a $40 billion investment plan through 2027, of which only $30 billion is directed to exploration and field development, in strategic partnerships with giants like: Eni, ExxonMobil, Chevron, and Occidental. As for shale gas 707 trillion cubic feet, of which 51 trillion are directly recoverable, placing Algeria third in the world after the United States and China!
The largest iron mines in Tindouf (extreme south of Algeria), with reserves of 3.5 billion tons, with an annual production capacity of 44 million tons of iron, Algeria is building a 950 km railway line for its transportation and 6 plants for production, which is transforming Algeria into a global iron export powerhouse with expected revenues of up to $20 billion annually.
and among the largest reserves of phosphate in the world (2.8 billion tons) with a production capacity of 10 million tons per year, in addition to gold, zinc, copper, marble, nickel, lithium and other energies which are renewable as the sun shines more than 3000 hours annually. It also produces more than 40 million tons of cement, with an export capacity of 18 million tons.
Algeria is an energy country par excellence, where energy prices are competitive and very low, which provides comfort for citizens, reduces the cost of production and encourages investment; natural gas 0.21 to 0.40 Euros, electricity: 0.1 to 0.4 euros/hundred kilowatts/hour, gasoline 0.30 euros/liter, Diesel: 0.17 euros/liter.
Algeria, a Center for Business, Partnership and Investment:
Thanks to its unwavering commitment and continued advocacy for the continent’s causes at various levels and fields, its geostrategic location, its policy of regional and continental integration, its cooperative and partnership relations with various countries, regions, and organizations, its high credibility with foreign economic and financial organizations, its rapid economic renaissance, its distinguished human resources, and its favorable investment climate, Algeria has transformed in recent years into

a continental platform for trade exchange and economic cooperation, a center for business, investment, and partnerships, and hosting several continental economic conferences, forums, and exhibitions this year, all serving and promoting development and cooperation among African countries, and strengthening partnerships between Africa and the world.

Algeria, a fertile land for all types of agriculture:
Algeria’s land is fertile for all types of agriculture; in the north, center and south, full of various agricultural products, which covers more than 75% of the national needs, with a production estimated at 38 billion dollars. It produced almost 100% of its needs of wheat.
Algeria is adopting an agricultural policy based on supporting national investment and partnership with foreigners, especially in the desert, where there are vast unexploited areas with fertile lands and large groundwater resources. It is working to provide various types of support, support for fertilizers from 20% to 50%, facilitate loans and provide electricity to investors, while providing plowing, irrigation and harvesting machines in Algerian factories, and facilitating their import from abroad when necessary, financing smart irrigation methods, granting licenses to import spare parts, agricultural equipment and tractors that are no older than 5 years, while reducing taxes and fees on agricultural products.
Algeria launched a big investments in agriculture, public and private, especially in Sahara, also in partnership with different countries, for example:
The Qatari company Baladna started a huge investment with the Algerian partner of 3.5 billion dollars, on an area of ??117000 hectares in Adrar (south), the largest in the world for the production of 250 products such as: milk, fodder, corn and wheat.
The Italian group established the “Mattie Africa Foundation, to implement a huge project in the southern province of Timimoun, and to produce grains, legumes, wheat, lentils, dried beans, chickpeas and oil plants such as soybeans and food industries. The project extends over an area of ??36 thousand hectares, with a total value of 455 million dollars.
A joint Algerian-Saudi project in the production of grains, fodder and dates, especially in the field of grain production (durum wheat seeds) on an area of ??6300 hectares in the province of El Menia in the south. The managers also aspire to grow dry legumes (lentils and chickpeas) on large areas, and to establish pens for raising cows, after purchasing 500 dairy cows and allocating an area of ??200 hectares to grow corn, in addition to planting more than 3,000 other hectares of grains.
The Turkish company “Sarl Donayser” investing in the city of Adrar, southern Algeria, by producing wheat, barley, clover and lentils on an area of ??4,000 hectares. The company aims to plant an additional 3,000 hectares, produce fruits on an area of ??300 hectares.
Other foreign investors (public and private) are interested to invest in the southern Algeria such as: china, Oman and Malaysia, because this region is characterized by low costs and abundant energy and labor resources, in addition to easy access to groundwater. Further the advantages provide by the government to this strategic sector.
Algeria as the gate of Africa:
In 2017, Pakistan launched the “Looking at Africa Initiative-Policy” and “Engaging Africa” in 2019 to develop political relation and economic with Africa. Within the framework of Pakistan’s African policy, Algeria as the gate of Africa can be represented as a pivotal country and a bridge of communication and strategic cooperation with the continent.
Algeria the largest country in Africa and the Arab and Mediterranean regions with an area estimated at 2,400,000 km2, it is in the middle of the world, linking North Africa to Europe across the Mediterranean, and to Asia through Suez Canal.

Algeria, has a strategic location, significant economic potential, huge natural resources, a good political relations with African countries, represents a solid base to move towards the continent, to promote partnership and trade exchange, especially as Algeria is a member of the Continental Free Trade Area Agreement African Union – AFCFTA, as well as a member of the Arab free trade zone.
ALGERIA: towards regional and continental integration:
Algeria is working to achieve continental economic integration through huge structural projects underway, such as the trans-Saharan gas pipeline, parallel to the trans-Saharan road with a length of 5000 km, linking northern Algeria with the capital of Nigeria – Lagos through Tunisia, Mali, Chad and Niger, including the fiber optic network.
Algeria is linked to many African countries by air transport lines as: Tunisia, Egypt, Mauritania, Senegal, Côte d’Ivoire, Burkina Faso, Mali, Niger, Ethiopia, South Africa and Nigeria. It has also launched commercial sea lines to Mauritania and Senegal, and soon to Côte d’Ivoire to enhance its exports to West African countries. It opened two permanent exhibitions and two banks in Mauritania and Senegal to facilitate the exchanging trade.
– New investment law, with international standards and guarantees:
The New Algeria launched a big reforms in economy according to the international standards, activating production mechanisms and promoting economic governance and transparent management by generalizing digitization in all sectors.
A new investment law was adopted on July 24, 2022, offering privileges and guarantees essential for both national and foreign companies and entrepreneurs. This law also exceeded a rule 49% for foreigners, compared to 51% for nationals, by granting foreigners the right to invest in all sectors 100%, except for limited strategic sectors.
The law includes the creation of an “Algerian Agency for the Promotion of Investment”, the investment registration and follow-up process takes place during a period of achievement through the “digital platform of the single window” for major and foreign investments, which coordinate with the diplomatic and consular representations, to accompany investors for the implementation of all related procedures of ongoing projects.

The Investment Law offers important tax and customs exemptions and concessions, ranging from 3 years to 7 and 10 years, for investments included in the “Sector system” in the areas of activities: this includes mines and quarries, agriculture, aquaculture and fishing, industry and food industry, pharmaceutical and petrochemical industry, services and tourism, new energies and renewable energies, knowledge economy and information and communication technologies.
For investments within “System Regions” in the sites belonging to the high plateaus, the south and the great south require private escort from the state, which possesses a potential of valuable natural resources. It also includes investments under the “Structured Investments” system that has a high ability to create wealth and more job opportunities, as well as raise the attractiveness of the region and be a driving force for sustainable development.
After 03 years the Agency for the Promotion of Investment”, registered around 14000 projects, including 200 big projects from, Arab, European, Americans and Asian countries, in different sectors as industry, agriculture, energy, tourism, transport.
A large Pakistani participation in the Algerian exhibitions:
The Algerian Embassy in Islamabad coordinates with all official and economic institutions in the two countries to activate the exchange relations and accompany business community in their activities in both directions, by providing the necessary information and facilities that would help to advance bilateral relations to the desired level of partnership.
During the last three years, we witnessed a positive interaction between business communities in both countries, we also recorded an increasing influx of Pakistani economic operators to Algeria to participate in different exhibitions, especially the Algiers International Fair – FIA in June 2023, more than 20 participants. In 2024, more than 30 participants, in 2025 the participation reached to 35, while 02 Economic Forums between Algeria and Pakistan were held during the FIA in 2024 and 2025. To be noted, that in 2025 this fair witnessed a participation of 473 Algerian companies and 165 foreign companies from 30 countries.

The Intra-African Trade Fair (IATF2025) in Algeria, September 2025:

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Syed Turab Shah

Syed Turab Shah

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