Re-elected earlier this month for a second term, Algerian President Abdelmadjid Tebboune has made economic diversification a national priority, setting a goal to exceed $15 billion in non-hydrocarbon exports by 2027. Increased foreign investment, particularly in major industrial projects, have boosted the country’s economic activity in recent years, positioning Algeria as Africa’s third-largest economy. Government reforms aimed at strengthening non-oil sectors – which include green hydrogen, mining, agriculture, heavy industry and tourism – are expected to continue driving diversified growth in 2025 and beyond.
Green Hydrogen
As part of its decarbonization efforts, Algeria has positioned green hydrogen at the forefront of its energy sector expansion. In July 2024, Algerian national oil company Sonatrach signed a MOU with Turkish industrial group Tosyali to jointly explore the potential to produce green hydrogen for green steel manufacturing. This builds on the country’s first green hydrogen project – a 50 MW pilot plant in Arzew launched in February by Sonatrach, in partnership with German development bank KfW – which aims to support large-scale production and export to Europe.
Mining
Algeria – rich in phosphate, iron and other strategic minerals – is seeking to boost its mining sector, which currently contributes just one percent to GDP. The government has launched several reforms, including a $32-million minerals mapping project to be completed by late-2024, aimed at identifying key deposits and catalyzing new exploration projects. Algeria is also revising its mining regulations to streamline the title acquisition process and introduce tax incentives, with a view to encouraging foreign investment. Major initiatives include the Gara Djebilet Iron Ore Project – home to one of the largest iron ore deposits in the world – Bled El Hadba Integrated Phosphate Development, and Tala Hamza Zinc-Lead Project.
Agriculture
President Tebboune is targeting food self-sufficiency for Algeria, aiming for complete independence in durum wheat production by the end of 2025, followed by barley and maize in 2026. To achieve this, he plans to expand irrigated land by one million hectares. In July 2024, Algeria signed an agreement with Italian agro-food company BF to boost durum wheat production, with peak output expected by 2028. Part of production will be exported to Italy, while the remainder will support Algeria’s self-sufficiency goals. Additionally, Algeria signed a $3.5-billion deal with Qatari agricultural company Baladna in April 2024 to develop the world’s largest integrated dairy farming project in Adrar, producing 1.7 billion liters of milk annually.
Industrial Equipment Manufacturing
Algeria’s heavy industrial activity is rapidly expanding, particularly in the production of industrial equipment, including electrical components. Earlier this month, Algeria’s power utility Sonelgaz exported a shipment of electric meter spare parts, produced by its subsidiary Société Algérienne des Industries Électriques et Gazières, to Tunisia and Iraq. In August, Sonelgaz and US company General Electric began construction of the General Electric Algeria Turbines Plant in Ain Yagout, set to start producing electricity transmission equipment by August 2025.
Tourism
Algeria experienced its highest tourism sector growth in 20 years, with over 2.5 million visitors in 2023. The government is aiming to significantly increase this number, with the goal of welcoming 10 million tourists by 2030. To support this growth, Algeria is focusing on developing its tourism infrastructure, boasting more than 1,600 hotels and a total accommodation capacity of nearly 160,000 beds. Additionally, visa procedures have been simplified, allowing foreign travelers interested in visiting the Algerian Sahara to obtain visas upon arrival.
