Algeria, the largest African country in terms of area, is an important supplier of oil and gas. In order to reduce dependencies and be able to export energy to Europe also in the future, the government is currently focussing on solar power and green hydrogen in particular.

The food and packaging industry, the automotive sector and mining also offer potential. This not only applies to exports: the Algerian domestic market, with a population of around 46 million, is also attractive.

From an European perspective, another positive aspect is that the north-west African country has continued its policy of opening up: Following the removal of joint venture obligations in 2020, a new investment law provides more legal certainty now. Furthermore, Transparency International attests to the government’s progress in the fight against corruption.

However, investors still have to overcome hurdles. In particular, an opening of the financial and banking market and a programme to reduce bureaucracy are urgently needed. Other risks include the sometimes fragile security situation.

Economy. According to the IMF, Algerias economy grew by 4.2 percent in 2023. For the current and the next year, economists predict growths rates of 3.8 and 3.1 percent. The gross domestic product per capita rose from the equivalent of 2292 to 5260 Dollars in the last 20 years. Inflation recently stood at 7.6 per cent. National debt has reached around 46 per cent of GDP.

Population. Algeria has 45.6 million inhabitants. Annual population growth has declined from 2.0 to 1.6 percent in the last ten years. Since 2003, the birth rate has risen slightly from 2.5 to 2.8 children per woman. Life expectancy was at 77 years recently, six years more than 2002. 100 percent of the population has access to electricity (twenty years ago, it was already 98 percent).

Governance. On Transparency International’s latest Corruption Perceptions Index, Algeria ranks 104th out of 180. Last year, the country made up a lot of ground here: the score rose from 33 to 36 points, putting Algeria on a par with Brazil, Serbia and Ukraine.

Sources and further information:

World Bank: https://data.worldbank.org/country/algeria

Africa Business Guide https://www.africa-business-guide.de/de/maerkte/algerien

Germany Trade & Invest: https://www.gtai.de/resource/blob/14974/a93d28c7b9e4d8221e6c16cf2bb423ce/GTAI-Wirtschaftsdaten_Mai_2024_Algerien.pdf

Transparency International: https://www.transparency.org/en/cpi/2023/index/nga