Invest in Algeria

Economic overview

With a strategic geographical location, at the centre of the Mediterranean region and connecting Africa, Europe and the Maghreb, Algeria offers tremendous opportunities economic partnerships.

Economic Indicators

  • Gross Domestic Product: $ 169 billion (2019)
  • Gross domestic Product per capita: $ 4,000 (2018)
  • GDP real growth rate: 0, 8% (2019)
  • GDP real growth rate excluding hydrocarbons: 3.3% (2018)
  • External Debt: $ 1, 8 billion (2018)
  • Inflation rate:2, 2%(2020)
  • Unemployment rate:11, 4% (2019)

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Infrastructure

  • Roads: 112,039 km of roads and highways (ranked 40th network in the World and 3rd in Africa) of which 29,573 km of national roads.
  • Airports: 36 airports of which 16 are international.
  • Ports: 45 maritime infrastructures of which 11 commercial ports, two oil ports, 31 fishing ports, one (01) marina.
  • Railway network:   4498 km of railway network of which 3854 km represent operational lines and 2,380 others are under construction.
  • 7 tramways: Algiers, Oran, Constantine, Ouargla, Sidi Bel Abbes, Sétif and Mostaganem. 
  • One metro in Algiers with a length of 9.5 km and  9.4 km under construction.

A qualified and competitive labour force

  • 5.5% of GDP is dedicated to education
  • 6.24% of the operating budget is dedicated to higher education
  • 86% literacy rate
  • 96%  school enrolment
  • 1.5 million Students including 35.000 registered in Doctoral Studies and 90.000 in Master Studies.
  • 109 higher education schools of which 54 universities.

Competitive production factor costs

  • Salary: 180-900 euros (the legal minimum wage is set at 180  euros)
  • Natural gas : 0.21 to 0.40 Euros/ therm
  • Electricity: 1 to 4 euro cents / kWh on average
  • Gazoline 0.30 euros/L, Diesel 0.17 euros/L 
  • A network of 29 banks and financial institutions, of which: 14 private, 6 public and 9 financial institutions.

Through its network, the National Agency for Investment Development (ANDI) supports foreign operators in their search for partners and projects in Algeria at a central and local level.

ANDI’s missions are:

  • Investments registration ;
  • Investment promotion in Algeria and abroad ;
  • Territorial opportunities and potentials promotion;
  • Business practice facilitation, and companies incorporation and projects implementation follow up;
  • Investors assistance, support and accompaniment;
  • Information and awareness in the business community;
  • Qualification of the projects, their evaluation and the establishment of the investment agreement to be submitted to the National Investment Council  for approval.

The one stop shop 

The Decentralized One Stop shop is a local dismemberment of the National Agency of Investment Development at the local level. Established at the wilaya level, it includes, besides the officers of the Agency itself, the representatives of the administrations intervening at one time or another in the course of the investment, namely for the formalities related to:

  • companies incorporation and registration,
  • approvals and permits including building permits,
  • benefits related to investment

As regards, it is in charge of the investor reception and his registration file, and the issue of the certificate relating thereto, as well as of the receipt of the files related to the services provided by the administrations and bodies represented within the various centers, their delivery to the concerned departments and their finalization.

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Incentives for investment

  • Up to 10 years of tax exemption, depending on the location and size of the project.
  • Partial or total refund of expenses related to infrastructure works in  the southern and highland areas and in areas whereby the development requires a contribution from the State;
  • Reduction in employers’ contribution to social security for the recruitment of young job seekers;
  • Renewable concession of land over periods of 33 years ;
  • Discounts on the price of the rental fee on the land and property acquired within the framework of the realization of the investment;
  • Temporary Exemption for 5 years of Companies Benefits Tax (IBS), Global Income Tax (IRG) and Tax on Professional Activity (TAP) and 3% bonus of the interest rate on bank loans granted to investments in certain activities related to steel and metal industries, hydraulic and Electrical Appliances, chemical Industry, mechanics and automotive, Pharmaceuticals, aerospace, ship building and repair, advanced technology, food processing, textiles and clothing, leather, wood and furniture industry;
  • Exemption from VAT, customs duties, taxes having equivalent effect or any other charge for the equipment needed for investment by industrial companies in the field of research and development;
  • Covering by the Public Treasury of the bank interest for investments made by industrial companies for the acquisition and mastery of technology to enhance the level of industrial integration of their products and their competitiveness;
  • protection by international agreements and international arbitrationParty to  48 bilateral agreements on the investments promotion and reciprocal protection;
  • Party to 65 bilateral agreements on non-double taxation.

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Five Priority sectors to be developed

  • Industry 
    Metalworking, hydraulic binders, electrical and household appliances, industrial chemistry, mechanics and automotive, pharmaceutical production, aerospace, construction and ship repair, advanced technology, food processing, textiles and clothing, leather and timber products, wood and furniture industry, and Mines. Read more.
  • Tourism
    • Raising the value of Algeria  Destination;
    • Implementation of a Tourism Quality Plan (PQT)
    • Development and qualification of the offer by investing in tourist centers and villages of excellence;
    • Public-Private Partnership to strengthen the Tourism Channel; Read more.
  • Agriculture: It focuses mainly on the permanent support of food security and the rural areas development. Read more.
  • Renewable Energies and Energy Efficiency: For the installation of a capacity of 22000MW by 2030 of which 4500 MW by 2019. This program concerns solar, thermal, biomass and wind.
  • Information and Communication Technologies: Which concerns the development of the digital economy, technology parks, the introduction of e-money and e-services, data and data base security, etc. Read more.
Level

Algerian economy

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Elevation

Investment opportunities

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Height

How to invest in Algeria

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