NABC and Algeria
In June 2022, a business delegation from Algeria attended NABC’s flagship conference Africa Works! 2022 Innovation for Resilient Growth. The delegation of members of The Algerian-Netherlands Business Council (CAAN) and the Council of Algerian Economic Renewal (CREA) visited Dutch companies that are active in agriculture and in waste-management, as well as the Port of Rotterdam. The company visits were followed by a matchmaking session between Algerian and Dutch companies.
In November 2021, the NABC participated alongside several of its member companies in the Netherlands Pavilion at the Logistica trade fair in Algiers to which the Netherlands were welcomed as the fair’s ‘country of honour’.
Further, to renew cooperation with the Algerian-Netherlands Business Council (CAAN), in operation since 2015, NABC’s country expert visited Algeria in June 2019. CAAN is an independent body which is closely cooperating with NABC. The launch of the official hub was organized within the frame of a two-day visits focusing on developing business opportunities for Dutch companies in Algeria.
NABC and CAAN renewed their cooperation agreement in 2019, after the leadership of CAAN had changed significantly in the aftermath of the Hirak-revolution in Algeria. The new CAAN leadership visited the Netherlands in August 2019, to sign the MoU agreement during the Algeria Round Table at the NABC offices in the Hague. During this Round Table Mr. Abdellah Aidaoui, the Secretary-General of CAAN, showcased business opportunities in Algeria while Mr. Alwin Oud, the President of CAAN and an only permanently based Dutch entrepreneur present in the country shared his story.
In October 2019, CAAN and NABC cooperated with the Dutch embassy in Algiers and jointly set up a Holland Pavilion during the Sipsa Filaha agricultural Trade Fair.
Investment climate
Following the April 2, 2019, resignation of President Abdelaziz Bouteflika, Algeria entered a transition period headed by an interim president. In December 2019, new president Abdelmadjid Tebboune was sworn in after elections that were largely boycotted.
Algeria is the fourth largest economy in Africa. It has a state enterprise-dominated economy and has traditionally been a challenging market, though one that offers compelling opportunities. Multiple sectors offer opportunities for long-term growth for foreign companies, with many having reported double-digit annual profits. Sectors primed for continued growth include agriculture, tourism, information and communications technology, manufacturing, energy (both fossil fuel and renewable), construction, and healthcare.
The energy sector, dominated by state hydrocarbons company Sonatrach and its subsidiaries, forms the backbone of the Algerian economy, as oil and gas production and revenue have traditionally accounted for more than 95% of export revenues, 60% of the state budget, and 30% of GDP. The Algerian government continues to pursue its goal of diversifying its economy, with an emphasis on attracting more foreign direct investment (FDI) to boost employment and offset imports via increased local production. Algeria has pursued a series of protectionist policies to encourage local industry growth.
In December 2017, the government scrapped a short-lived policy requiring importers of certain goods to obtain import licenses (the license requirement was subsequently retained only for automobiles and cosmetics), replacing it with a temporary ban on 851 products announced January 1, 2018. The government replaced that ban on January 29, 2019, with a set of tariffs between 30-200% on over 1,000 goods. The import substitution policies have generated some regulatory uncertainty, supply shortages, and price increases.
Investment Climate Key Indicators & Metrics
| Measure | Year | Index/Rank |
| TI Corruption Perceptions Index | 2023 | 104 out of 180 |
| Economic Freedom Index
|
2024
|
164 out of 184
|
| Global Innovation Index | 2023 | 119 out of 132 |
Opportunities in Algeria
Opportunities lie in agriculture, (sea)port development, maritime, circular economy, sustainable and classical energy. Additionally, there is a growing and young population with new connections being made to West-Africa (maritime ports being created, the Trans Sahara-highway and the creation of a free trade area. There is a need for diversification of the economy (agriculture, industry, and services). Algeria is a higher-middle income country, has a high-educated population and knows a relatively high level of development.
Challenges in Algeria
One prominent challenge in the country is the prominent level of unemployment in the country. The country is in a region that lacks a strong regional market which can hinder investment and business development.
Moreover, since 2008 there have been many FDI restrictions. Until 2019, for each new investment project in Algeria, most of its capital (51%) had to be held by local partners; however, these restraints have all been lifted, except for “strategic sectors” such as hydrocarbons, mining, defense, and pharmaceuticals. The Algerian government has enacted protectionist economic policies (import quotas for several types of products). Economic operators currently deal with a range of challenges, including overcoming customs issues, an entrenched bureaucracy, difficulties in monetary transfers, and price competition from international rivals, particularly China, Turkey, and France. International firms that operate in Algeria sometimes complain that laws and regulations are constantly shifting and applied unevenly, raising the perception of commercial risk for foreign investors. Arduous foreign currency exchange requirements and overly bureaucratic customs processes combined impede the efficiency and reliability of the supply chain.
Nevertheless, in recent years Algeria has benefited from the support of the World Bank to improve its business climate. The country has also set up measures to attract more investors such as tax exemptions throughout the process of one project that supports exports. More information about investment procedure can be found here.
Diplomatic relations
The Netherlands
Embassy
The Netherlands is represented in Algeria by Ambassador Janna van der Velde, who took office in 2020. There is also a Dutch agricultural counselor stationed in Algiers.
More information (French): Click here.
Algeria
Embassy
Algeria is represented in The Hague by Ambassador Ms. Salima Abdelhak, who took up office in December 2021.
More information (French): www.embalgeria.nl
Presence of Dutch companies
There are 69 Dutch companies active in Algeria at the moment. The country is interested in working more closely with the Netherlands on economic matters, and welcomes new businesses.
Webinars
June 16th, 2020. Doing Business in Algeria. The recording is available on our YouTube channel.
Reports
Arne Doornebal
- Algeria, Botswana, Ghana, Morocco, Tunisia, Uganda
- arne.doornebal@nabc.nl