Communication Section,of Algerian Embassy in Islamabad : In 2017, Pakistan launched the “Looking at Africa Initiative-Policy” and “Engaging Africa” in 2019 with the aim of developing cooperation relations with Africa, in parallel with the promotion of political relations and diplomacy, which was embodied in reaching 20 Pakistani diplomatic missions on the continent. Pakistan is currently in a new phase entitled “engaging Africa“, which will open new horizons for further prosperity. It gives a strong impetus to the Pakistani-African relations in various fields. To note that actually there is 14 African embassies in Islamabad.
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, also considered as the largest country in Africa and the Arab and Mediterranean regions with an area estimated at 2,381,741 km2, it is in the middle of the world, linking north Africa to Europe across the Mediterranean.
Algeria, with its important strategic location, significant economic potential, and natural wealth, and its strong political ties with African countries and Pakistan, 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.
-ALGERIA: towards regional and continental integration:
Algeria is linked to many African countries by air transport lines as: Tunisia, Egypt, Mauritania, Senegal, Côte d’Ivoire, Burkina Faso, Mali, Niger, Cameroun, Ethiopia and South Africa, and soon to Nigeria. It has also launched commercial sea lines to Mauritania and Senegal, and soon other lines such as Côte d’Ivoire to enhance its exports to West African countries.
In the context of Algeria’s efforts to achieve regional economic integration, 5 free zones for trade exchange will be established between Algeria and Mauritania, Mali, Niger, Tunisia and Libya. Note that Algeria has organized several exhibitions in West African countries, such as Niger, Côte d’Ivoire, and Senegal, during the last two years. In 2023, it opened two permanent exhibitions and two banks in Mauritania and Senegal to facilitate the exchanging trade.
-Modern infrastructure and huge economic wealth:
Algeria the third economy in Africa, has rich material and human resource, with positive indicators such as: a Gross Domestic Product- GDP around 267 billion dollars, Rate of Growth 4.1%, Foreign Currency Reserves 70 billion USD, total exports around 70 billion USD, Exterior Debt less than 01 billion USD, the annual budget in 2024 evaluated to 110 billion USD, with huge investments Algeria expect to achieve 400 billion USD in 2026- 2027.
To underline that it is the tenth in the continent in terms of population, with only 47 million, the majority of whom are under 30 years old. Algeria has large modern infrastructures in highways and railways, 36 commercial airports and 11 seaports.
At the African level, it is first in gas production (137 billion m3 annually) the tenth in the world, export (55 billion m3), reserve (4.5 trillion m3), third in oil production (1 million barrels per day) and in reserves (12 billion barrels). It also has great mining wealth, the largest iron mines such as Gara djebilet – Tindouf, with reserves of 3.5 billion tons, with a production capacity of 40 to 50 million tons of iron Crude, and among the world’s largest reserves of phosphate (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’s land is fertile for all types of agriculture; in the north, center and south, full of various agricultural products, which covers 75% of the national needs, as well as 1,600 km of beaches on the Mediterranean, being rich in marine resources. Mega investment projects in agriculture launched by Algerian government and private, also in partnership with foreign investors as Italy, Turkey, Qatar and Saudi Arab.
– New investment law, with international standards and guarantees:
The New Algeria brings economic reforms according to the international standards, activating production mechanisms, economic governance and transparent management by generalizing digitization in all sectors. As well as updating the laws regulating the economy and finance, investment and trade, as in the April 2023 new (law for money and credit) which was adopted to strengthen the independence of the Central Bank, encouraging foreign investment and facilitating the movement of capital funds.
A new investment law was also 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 – APPI ”, in July 2022, after less than 02 years around 10 thousand projects registered, including around 200 mega foreign investments from Arabic countries, Asia, Europe and America, the global amount around 50 billion USD.
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.
-Business visa:
The Algerian Embassy in Islamabad coordinates with all official and economic institutions in the two countries to activate the exchange relations and accompany companies and businessmen 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 two years, 2022-2023, 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 in June 2023, more than 20 companies participated. In June 2024, more than 30 businessman and women participated in the 55th session of Algiers International Fair and in the first Economic Forum between Algeria and Pakistan.
Note that the Algerian embassy in Islamabad granted 160 Business visa in 2023 and 176 in 2024. It facilitates the grant of business visa and provide all information about trade and investment in Algeria in order to promote the partnership between the two brotherly countries.
Positive indicators are promising a new phase that requires greater efforts in promoting and expanding communication/ interactions and taking initiatives that would develop cooperative relations between Algeria and Pakistan in several areas, especially in trade, investment and technical cooperation.
