Latest news with #AlgerianInvestmentPromotionAgency
El Chorouk
23-04-2025
- Business
- El Chorouk
What Are Algerian Demands in Amending the Partnership Agreement With Europe?
Participants in the conference on the Algerian-European Partnership for Sustainable Investment, titled 'Algeria-EU: New Investment Dynamics and Prospects for Cooperation' in a Changing World, agreed that the partnership agreement needs to be amended to serve both parties. The Economic Renewal Council called for broader acceptance of Algerian products, technology transfer, and promoting joint production and investment in Algeria. In his opening remarks, Toufik Boudjema, Director General for Europe at the Ministry of Foreign Affairs, said, 'The partnership agreement included an important axis related to encouraging investment in exchange for opening the market to preferential trade. However, the level of European investment remains below expectations and does not reflect the potential and opportunities available in Algeria, remaining very limited compared to the volume of trade'. The speaker considered that this situation justifies the urgent need to work together to encourage European investments in line with national priorities on the one hand and the European vision for developing the Mediterranean region on the other. In this context, the European Direct Investment Project in Algeria represents an important initiative aimed at providing a comprehensive assessment of this situation to address this structural imbalance. He highlighted the importance of the new program contributing to facilitating investments, which were agreed to be launched in the future within the framework of the 2025/2027 financial program, and continuing efforts to enhance the business climate and stimulate public-private partnerships in strategic priority areas for our country. For his part, Omar Rekache, Director of the Algerian Investment Promotion Agency, revealed the results of the exploratory mission, which included 14 European countries, the last of which was Athens, last week. This mission allowed the agency to present Algeria as a promising and reliable destination for European direct investment. 122 meetings were organised in 14 countries, bringing together more than 76 economic institutions and 34 institutional bodies, including chambers of commerce, professional organisations, and two investment funds. The most important sectors in which European companies expressed interest in investing were energy, renewable energy, agriculture, and the processing industry. Rekache explained: 'I affirm the agency's full commitment to providing all necessary support and assistance to realize productive investments, in a climate characterized by transparency, efficiency, and speed of processing, and to continuing positive cooperation to serve the interests of both parties within the framework of the 2025-2027 financial program.' For his part, Kamel Moula, Chairman of the Algerian Economic Renewal Council, outlined what Algerian economic operators expect from amending the partnership agreement with the Europeans, emphasising the desire to achieve progress in at least three key areas, including the opening of the European market to Algerian exports outside the hydrocarbon sector, as domestic production has expanded to include several sectors and is now characterised by quality and meets international standards, particularly concerning health safety in the food industry. Algeria is also working to decarbonise its industry. Moula emphasised technology transfer, which can be achieved through joint production partnerships. This type of partnership represents a real alternative to industrial relocation for developed countries, a development opportunity for emerging countries, and a practical embodiment of the win-win principle. He spoke about European investment in Algeria, above all else, as a sign of confidence in Algerian economic operators who are ready to welcome their European counterparts and share the Algerian market with them. Moula concluded, 'This is why it is important for the European Union to look beyond the immediate commercial interests that have dominated our relationship to date, and to recognise that we are both capable of achieving great things together.' In a related context, Stefano Sannino, Director General of the European Commission's Directorate for North Africa and the Middle East, who is currently making an official visit to Algeria from 21 to 24 April, to discuss with senior Algerian officials the prospects for strengthening Algerian-European co-operation, stated that cooperation between Algeria and Europe must be positive. He noted that missions to 14 countries have enabled 150 European companies to express interest in the Algerian market, with ambitious steps being taken to chart a path for joint investment between the two countries. He praised the measures Algeria has adopted to facilitate investment. During this visit, Sannino holds talks with representatives of several Algerian ministerial departments, including Foreign Affairs, Energy, Finance, and Culture. He also took part, on Wednesday, April 23, at the Sheraton Hotel, in the opening of a conference on 'New Investment Dynamics and Prospects for Cooperation' between the European Union in Algeria, jointly organized by the Delegation of the European Union in Algeria and the Algerian Investment Promotion Agency (AAPI), in the presence of representatives of the Algerian Economic Renewal Council (CREA) and the business community in Algeria. Sannino's visit will provide a valuable opportunity to reaffirm the EU's commitment to giving new impetus to bilateral cooperation with Algeria, within the broader and strategically articulated framework of the New Pact for the Mediterranean. The EU aspires to a partnership that goes beyond the very strong existing relations, particularly in the energy sector, to build other strategic complementarities for sustainable and inclusive growth, in a changing geopolitical context, and in the face of shared challenges such as reindustrialisation, economic competitiveness, and the green transition. It also aims to discuss with the Algerian authorities the most appropriate framework for increasing EU investment in Algeria. Furthermore, the EU and Algeria are called upon to deepen their strategic dialogue on current major security and geopolitical issues, counterterrorism, migration management, and energy interconnection, which are now among the shared priorities on both sides of the Mediterranean. In this context, the EU fully reaffirms its commitment to work together with Algeria to make these priorities the pillars of a reliable, ambitious and lasting partnership, based on a peaceful and fair dialogue with all EU Member States. It should be noted that, on the sidelines of his mission, Sannino will travel to Timimoun (southern Algeria), where he will meet with beneficiaries of the Jil Siyaha program, a concrete result of Algeria-European Union cooperation in the field of tourism. He will also explore the cultural and historical heritage of the Casbah (Algiers) before concluding his stay with a visit to the National Museum of Prehistory and Ethnography of Bardo, as a testament to the cultural and historical richness of Algeria. The visit comes as Algeria's Foreign and Commerce ministries hold talks with the North Africa Unit at the Directorate-General for Neighbourhood and Enlargement Negotiations of the European Commission, aimed at reviving their 'Partnership Agreement' signed in 2002. The new Agenda for the Mediterranean was launched by the European Union in 2021 to strengthen the strategic partnership with its Southern Neighbourhood partners in trade and renewable energies, upgrading facilities and infrastructure, and managing migration and counter-terrorism issues.
Zawya
23-04-2025
- Business
- Zawya
Chinese firm to build solar panel plant in Algeria
A Chinese company is planning to build a solar panel plant in Algeria to take advantage from a vast market in the African continent. Longi, one of the world's largest photovoltaic devices manufacturers, presented its investment plan at talks with the Algerian Investment Promotion Agency (AIPA) in the capital Algiers on Tuesday, the local press reported. 'A Longi delegation explained its plan to build a solar panel plant in the country…AIPA Director General Omar Rakash explained the incentives that will be offered to such a project,' the Arabic language daily Elkhabar said. The paper quoted Rakash as saying the project would support Algeria's plans to expand its reliance on renewable energy sources. It said Longi had earlier presented its planned project to the Energy and Mines Minister Mohammed Arkab but it did not provide project details. (Writing by Nadim Kawach; Editing by Anoop Menon) (
Zawya
18-04-2025
- Business
- Zawya
How Algeria is Crafting a Dynamic Economy for Tomorrow
As the first light breaks over the Port of Algiers, cranes hum to life above stacks of containers. " A decade ago, 90% of these ships carried oil and gas," remarks a port worker, gesturing toward vessels being loaded with fertilizers, steel coils, and crates of dates." Now, you can see the change in what we export—it's more than just oil products. It's our future." Long reliant on hydrocarbons, Algeria is now charting a bold course toward economic diversification. With over 90 percent of its export revenue historically coming from oil and gas, the country is undergoing a profound shift to reduce this dependency and attract foreign investment. Recent measures supported by the World Bank, are beginning to yield tangible results, as highlighted in the Algeria Economic Update for the second half of 2024. Non-hydrocarbon exports have tripled since 2017, reaching $5.1 billion in 2023, representing just 2 percent of GDP. Key exports include fertilizers, steel products, and cement, signaling early successes in broadening Algeria's economic base. At the same time, this portfolio remains limited and underscores the importance of further expansion and diversification efforts. Central to this transformation is the Algerian Port Community System (APCS), launched in July 2021 and developed with World Bank expertise, this digital platform connects all port stakeholders and reduces cargo clearance times by linking customs, shipping lines, and exporters on a single interface. The World Bank's technical assistance also included establishing a legal framework, fostering stakeholder dialogue, and organizing study visits to global ports like Barcelona. " The APCS marks a turning point for Algeria's trade sector," emphasizes Meriem Ait Ali Slimane, a Senior Economist at the World Bank. " It demonstrates how targeted reforms can drive transformative economic impact." Algeria's 2022 Investment Law is a key element of these efforts and is designed to attract domestic and foreign investors. The law offers incentives such as tax exemptions, customs duty waivers, and streamlined administrative procedures through the newly established Algerian Investment Promotion Agency (AAPI). The AAPI has rolled out an online platform to simplify investor's journey, facilitating access to land, information, and incentives digitally. The World Bank supported AAPI through training and policy recommendations, including guidance on attracting foreign direct investment (FDI) and developing export-oriented sectors. Algeria's agricultural sector has also made strides, particularly in exporting fresh food products. World Bank technical assistance facilitated market studies, value chain assessments, and public-private dialogues. A 2018 World Bank-backed campaign collected over 800.000 sheepskins, unlocking new opportunities for the leather industry. This campaign was the first of an ongoing series of solutions to environmental issues. Similar efforts in the industrial sector focused on value chains such as cork and precision mechanics. Capacity-building initiatives, including study tours and training programs, have enhanced knowledge and coordination among sectoral players. To ensure Algerian products meet international standards, the National Accreditation Agency (ALGERAC), a key player in ensuring export product quality, has expanded its reach. The World Bank assisted ALGERAC in developing a five-year strategic plan and building staff expertise through in-person and online training on international standards. By July 2024, the number of accredited laboratories rose to 135 from 77 in 2021, a 75 percent increase in three years. Accreditation is vital for aligning Algerian products with global standards, a crucial advantage for entering new markets. Despite advances, Algeria continues to encounter challenges in productivity and bureaucracy. The global shift toward decarbonization poses challenges, particularly for carbon-intensive exports like fertilizers and cement, under the EU's Carbon Border Adjustment Mechanism (CBAM). To sustain export growth, Algeria must boost productivity, attract more FDI, and green its industrial processes. World Bank recommendations include adopting carbon pricing, diversifying export markets, and strengthening value chains in high-potential sectors like renewable energy and IT. " Algeria holds significant potential to diversify its exports and integrate into global value chains," notes Kamel Braham, the World Bank's Resident Representative in Algeria. " The challenge now lies in building on this momentum by addressing structural barriers and enhancing competitiveness." Algeria's collaboration with the World Bank will continue to inform its economic transformation. By digitizing trade processes, strengthening institutional capacities, and diversifying export portfolios, the country is laying the groundwork for sustainable growth. As the sun rises over the Port of Algiers, the sight of containers filled with steel, cement, and agricultural products—rather than just oil and gas—symbolizes a new chapter in Algeria's economic story. Distributed by APO Group on behalf of The World Bank Group.
Zawya
16-04-2025
- Business
- Zawya
Algeria reports surge in Chinese investments
Chinese investments in Algeria have sharply increased over the past few years and the bulk of them are in industrial projects, official Algerian data showed on Wednesday. Chinese investments are now estimated at nearly $4.5 billion covering 42 projects, showed the figures by the Algerian Investment Promotion Agency (AIPA). The projects include 22 direct investments by Chinese companies and 20 joint Chinese-Algerian ventures, the report said. It did not provide details of the investments but Chinese companies have invested heavily in Algeria's energy sector, vehicles and other industries. The latest Chinese foray in Algeria was last month, when Great Wall Motors announced its intention to build a car assembly plant in the OPEC country. AIPA reported last week that it has registered more than 12,800 projects with a value of nearly $43 billion since it was created in late 2022. (Writing by Nadim Kawach; Editing by Anoop Menon) ( Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.
Zawya
18-02-2025
- Business
- Zawya
Algeria reports $6.6bln new projects
Algeria has approved 743 projects worth around 889 billion dinars ($6.6 billion) since the start of 2025, an investment official has said. The Algerian Investment Promotion Agency (AIPA) awarded licences for the projects, which include 11 foreign and joint ventures, its Director Omar Rakash said. He told the Algerian daily Elkhabar that these projects are expected to stimulate growth and generate nearly 21,900 jobs. One project involve joint investments by Algerian and Omani businessmen associated with the South Korean Hyundai auto giant, he said without giving further details. 'The surge in investment this year complements growth over the past three years due to an improvement in the investment and business environment in Algeria,' he added. (Writing by Nadim Kawach; Editing by Anoop Menon)
