Algeria’s economic story has set itself on a new course of transformation. The country’s economy was almost completely dependent upon gas and oil for many years. Today, we find ourselves in a dramatic transformational process that is propelling Algeria onto the global stage as a sizable manufacturing force.
Major Developments in Petrochemicals
In early 2024, awarding a $1.1 billion contract for the construction of a petrochemical facility in Skikda to MAIRE from Italy is viewed as a significant milestone. With support from Sonatrach, Algeria’s state oil company, the project will produce linear alkyl benzene, which is used in making detergents. It represents that Algeria is finally starting to add value to its resources instead of shipping them abroad raw and that this is not just cleaning supplies, either.
Making Use of Mineral Wealth
Also, the mining sector is changing as well. Bled El Hadba phosphate mine in the east is a $7 billion joint venture between China and Algeria, and is expected to generate thousands of jobs and put Algeria on the world fertilizer markets given its 800 million tons of reserves. The Gâra Djebilet iron ore mine – one of the largest in the world – is already operating in the southwest, and it should soon produce up to 50 million tonnes of iron ore a year by 2026, which would fortify the steel and construction industries significantly.
Making Home-Based Machinery
Algeria is not just extracting from the Earth, but also manufacturing. The government owned heavy equipment company ENMTP manufactures everything from cranes to excavators. International partners such as Liebherr (Germany) and Ingersoll Rand (USA) are allowing the country to expand its ability to finance infrastructure projects in-country.
Growing Local Businesses
The development of small and medium enterprises (SMEs) is on the rise in many sites, including Sétif. Sétif is a hub of regional industry with over 12,000 SMEs. With two major industrial areas and a new mega-zone establishing in Ouled Saber, which should provide up to 20,000 jobs, this is a great example of how local businesses can drive national development.
Seeing Past Oil
Algeria is also enhancing its international partnerships. In 2023, it made agreements with Italy to expand cooperation in energy and green technologies to create a more diversified and resilient economy that is competitive in a world economy, not just oil and gas. market, not just in oil and gas.
Conclusion
Algeria’s manufacturing sector is expanding rapidly, fueled by smart investments, global partnerships and a strong vision for this future. For investors, entrepreneurs and businesses looking for opportunity in North Africa, Algeria is beginning to present itself—and it’s just getting started.
