Algeria advanced this week on three fronts: digital transformation, industrial localisation, and infrastructure expansion. The government approved a national AI strategy update and launched a digital services portal. Opel confirmed plans for local vehicle and engine production. Germany signed hydrogen cooperation agreements. Six new energy sector services were integrated into the national digital portal. 385 schools will be delivered by year-end. A third tire plant is under construction. Wastewater treatment capacity increased.
Digital and industrial localisation
The Ministry of the Knowledge Economy and Start-ups reviewed progress on the national AI strategy. The Dzair Digital Services portal launched. It currently hosts 1,200 services from 23 public institutions. Six new energy sector services were added this week: solar project licensing, gas connection requests, electricity tariff simulations, renewable energy certificate applications, hydrocarbon exploration permits, and industrial zone leasing.
Opel, a subsidiary of Stellantis, confirmed strategic steps toward local vehicle and engine production. The company signed a memorandum of understanding with the Ministry of Industry to assemble passenger cars and produce engines in Algeria. Target production: 50,000 vehicles and 100,000 engines per year by 2027. Local content requirement: 45% for vehicles, 60% for engines. The project will create 2,500 direct jobs and 8,000 indirect jobs.
A third tire plant is under construction in Oran. The plant, a joint venture between Algerian state-owned SNVI and Chinese manufacturer Linglong, will produce 5 million tires per year. Investment: $300 million. Local content requirement: 30%. Completion: 2026. The plant will supply the domestic market and export to Africa.
Hydrogen and foreign investment
Germany and Algeria signed a hydrogen cooperation agreement. The agreement includes a €500 million German government loan to finance green hydrogen projects in Algeria. Target: 10 GW of electrolysis capacity by 2030. Algeria will supply 10% of Germany’s hydrogen imports by 2035. The first pilot project, a 50 MW electrolysis plant in Adrar, will start construction in 2025.
The German development bank KfW signed a €200 million loan agreement with Algeria’s Sonelgaz to finance renewable energy projects. The loan will support 500 MW of solar and wind capacity. Repayment period: 20 years. Interest rate: 1.5%.
Education and digital integration
The Ministry of National Education announced that 385 schools will be delivered by year-end. Total investment: DZD 45 billion (€300 million). The schools will add 150,000 student places. Construction is part of a five-year plan to build 1,000 schools by 2027.
The national digital services portal now integrates education sector services. Students and parents can apply for school enrolment, check exam results, and request scholarships online. The portal also hosts vocational training applications and university registration.
Infrastructure and logistics
Algeria is positioning itself as a logistical hub linking North Africa to the Sahel. The government announced plans to develop a multimodal transport corridor from Algiers to Niamey. The corridor will include a railway line, a highway, and a pipeline. Investment: $2.5 billion. Completion: 2029.
The Ministry of Water Resources announced that Algeria is among the leading countries in wastewater treatment plant construction. 200 plants are currently operational. 50 more will be built by 2026. Total capacity: 1.5 billion cubic meters per year. The plants will supply irrigation water to 100,000 hectares of agricultural land.
Social protection and economic transformation
The government approved a reform of the social protection system. The reform includes the unification of social security funds, the introduction of a universal health coverage system, and the digitalisation of benefit payments. Implementation: 2025-2027. Budget: DZD 500 billion (€3.3 billion).
The Ministry of Industry published a report on economic transformation incentives. The report lists 10 sectors eligible for tax exemptions, customs duty reductions, and subsidised loans: renewable energy, pharmaceuticals, agribusiness, digital services, automotive, aeronautics, textiles, construction materials, mining, and logistics. Incentives include a 10-year corporate tax exemption for projects in high-priority zones and a 50% reduction in customs duties on imported equipment.
Security and cultural initiatives
An international network trafficking psychotropic pills and cocaine was dismantled. Authorities seized 10 million pills and 33 kg of cocaine. 12 individuals were arrested. The network operated in Algeria, Spain, and Morocco.
The rector of Djamaa El-Djazaïr, Algeria’s largest mosque, highlighted the role of Islamic values in fostering dialogue and stability. The mosque hosts cultural and religious events, including interfaith dialogues and Quran recitation competitions. The 46th King Abdulaziz International Quran Recitation Competition was held in Mecca. Algerian participants won three prizes.
Balance of the week
Algeria advanced on digital integration, industrial localisation, and infrastructure. The Dzair Digital Services portal now hosts 1,206 services. Opel confirmed local vehicle and engine production plans. Germany signed hydrogen and renewable energy agreements. 385 schools will be delivered by year-end. A third tire plant is under construction. Wastewater treatment capacity increased.
Key takeaway for entrepreneurs: Algeria offers tax exemptions, customs duty reductions, and subsidised loans in 10 sectors. The national digital portal simplifies licensing and permit applications. Local content requirements apply to automotive and tire production projects.
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