Algeria and Libya recently agreed to a joint water infrastructure roadmap, signaling fresh opportunities for entrepreneurs in both countries. The two governments, led by Algerian President Abdelmadjid Tebboune and Libyan Prime Minister Abdul Hamid Dbeibah, announced the initiative in February 2025 after a meeting in Algiers. According to Algeria Invest, the plan covers desalination plants, cross-border pipelines and data-sharing on aquifers.
For Algerian founders, the deal means three immediate advantages. First, Libyan officials will now import Algerian water-tech equipment under preferential financing terms set by the Banque d’Algérie in December 2024. The central bank allows up to 70 % of export contracts to be financed through state-backed export credits, reducing cash-flow pressure on small suppliers. Second, the roadmap includes a tender for a 200 million euro desalination plant near Tripoli, giving local companies a chance to bid as subcontractors. Third, joint Algerian-Libyan teams will map underground water reserves, creating data that startups can license for precision irrigation apps aimed at Algerian farmers.
Libya itself has a 3 billion euro infrastructure budget for 2025, earmarked mostly for water projects. Algerian firms with existing desalination or pipeline expertise can register as pre-approved suppliers through Libya’s National Water Authority before the first round of tenders opens later this year. Two Algerian pump manufacturers—Algerian Water Equipment (AWE) and HydraTech—have already opened Libyan offices in anticipation.
The agreement also addresses a long-standing regulatory hurdle: currency controls. The central banks of both countries signed a swap line in 2024 that allows Algerian dinars to be converted into Libyan dinars for approved water-project payments, removing the need for dollar intermediation and cutting transaction costs by an estimated 8 %. “For a small Algerian water-meter company, that difference can decide whether a Libyan contract is profitable or not,” said Yacine Benkhelifa, co-founder of MeterAlgerie.
Environmental groups warn that the plan risks over-extraction from the North-Western Sahara Aquifer System, which supplies both countries. The Carnegie Endowment for International Peace noted in April 2026 that current pumping already exceeds sustainable yields by 15 %. To mitigate the risk, the roadmap includes a clause requiring real-time flow monitoring and satellite-based reporting, opening a niche for Algerian green-tech startups specializing in remote sensing and IoT.
Startups in Oran and Annaba are already positioning themselves. Oran-based DesalSol has developed a modular containerized desalination unit that can be shipped to Libya within 48 hours. Annaba’s AquaTrack offers a cloud platform that tracks water quality and usage for municipal clients. Both companies have registered with Algeria’s Agency for the Promotion of Foreign Investment (APFI) to benefit from the 2025 Libyan tender.
The African Development Bank, which welcomed the roadmap in March 2026, may provide up to 50 million euros in concessional loans for Libyan projects that use Algerian technology. This could further lower financing costs for consortiums that include Algerian SMEs.
Key takeaway for entrepreneurs
Algerian water-tech startups can now access Libyan tenders with 70 % export financing and Libyan dinar payments thanks to the Algeria-Libya water deal. Registering with Algeria’s APFI and Libya’s National Water Authority before the first tenders opens in 2025 reduces approval delays. Modular desalination and IoT monitoring are the fastest-growing niches to exploit under the new roadmap.
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