Algeria has risen to become the third-largest economy in Africa in 2024, with its GDP projected to reach $264 billion by year-end. With significant energy and mineral resources, the North African nation has the potential to serve as a regional economic hub. To achieve this, Algeria has inked several strategic bilateral agreements with African and non-African allies to expand economic opportunities across energy, mining, agriculture and trade sectors.
Oman
Algeria and Oman have recently signed three Memoranda of Understanding (MOU) and two executive programs to strengthen mutual cooperation in key areas, including renewable energy, pharmaceuticals, mining and agriculture. Algerian Foreign Minister Ahmed Attaf and his Omani counterpart Badr bin Hamad Al Busaidi signed the agreements in June 2024 during a special session aimed at enriching the legal framework for bilateral relations and identifying new areas for joint collaboration.
Republic of Congo
Algeria and the Republic of Congo signed a MOU in May 2024 to enhance cooperation in the hydrocarbons sector. The agreement – signed by Algeria’s Minister of Energy and Mines Mohamed Arkab and Congo’s Minister of Hydrocarbons Bruno Jean-Richard Itoua – aims to transfer expertise, develop legal frameworks and promote sustainable practices in the oil and gas industry. It also calls for collaboration between Algeria and the Congo’s respective national oil companies Sonatrach and Société Nationale des Pétroles du Congo in downstream oil activities, LNG development and technical assistance in petrochemicals.
Russia
Algeria and Russia have strengthened their energy cooperation by signing a comprehensive roadmap on nuclear power. Formalized in March 2024 by Minister Arkab and Rosatom CEO Alexey Likhachev, the agreement extends cooperation in nuclear energy through 2025, encompassing the entire nuclear fuel cycle, research reactor operations and training for Algerian personnel. The roadmap also includes the formation of working groups and technical exchanges, further reinforcing bilateral ties established in 2014 for the peaceful use of nuclear energy in both countries.
Mauritania
Earlier this year, Algeria and Mauritania launched a free trade zone in Tindouf, Algeria, near the countries’ shared border. The bilateral agreement – signed in February 2024 by Algerian President Abdelmadjid Tebboune and Mauritanian President Mohamed Ould Ghazouani – introduces plans for fixed border posts and an 840-km road linking Tindouf with Zouerat, Mauritania. The initiative is part of Algeria’s broader plan to establish free trade zones with five neighboring countries – Mali, Niger, Tunisia, Libya and Mauritania – to enhance regional economic cooperation.
Germany
Germany and Algeria have formed a bilateral task force to develop green hydrogen infrastructure in Algeria, aiming to boost hydrogen exports to Europe. The initiative – formalized in February 2024 by a declaration of intent between German Federal Minister for Economic Affairs and Climate Action Robert Habeck and Minister Arkab – provides for the establishment of a hydrogen pilot plant. The task force will focus on enhancing production, storage and transportation frameworks, thereby stimulating private sector investment. The partnership aligns with broader efforts to create a hydrogen corridor from North Africa to Europe, with Algeria aiming to supply 10% of the EU’s green hydrogen demand by 2040.
