Slowly but surely the Algerian market is opening up to international trade after recovering from decolonisation and the economic crises of the 90s.
New policies being into place in Algeria include initiating negotiations with not only the United States but also with its main partners in the European Union, international organisations and its traditional partners in Africa and Arab countries.
Worthy of special attention are agreements signed in recent years of which we can highlight the EU-Algeria Association Agreement signed in Valencia on 22nd April 2002 which came into effect on 1st September 2005 and was renegotiated in August 2012. On 1st September 2012 a sixth round of duty reductions came into force.
With a total area of 2,400 Km2, nearly 1000 Km of coastline on the Mediterranean and just under 40 million inhabitants, Algeria is the largest of the Maghreb countries (Mauritania, Morocco, Algeria, and Tunisia). This makes it the second largest country in Africa and tenth in the world. However, one should take into account that the 80% consists of the Saharan desert.
55% of the population lives in the North. The main cities along the Northern coast or plains are Algiers, Oran, Constantine and Annaba.
Algerian law is a mixture of Islamic and French legislations. The official language is modern Arabic and this is used in public services, public cultural and educational organisations. However, most Algerians speak French and it is the main language of business and economics.
Weekends are Thursday and Friday, so the working week is from Saturday to Wednesday.
In economic terms, there are four main points that stand out: macro-economical stability; economic activity concentrated on fossil fuels; industrial inefficiency and very high unemployment.
In 2013 Algerian GDP grew by 3’05% of which total imports were € 40,000 m of which about 8 % from Spain.
As far as trade with Algeria is concerned, the main way to make an effective and lasting approach to the market is to set up an Algerian subsidiary under local laws. This branch will then deal with the local network of distributors and wholesalers. These will be spread all over the country and very rarely will they have agreements of exclusivity. It is very unusual for the subsidiary to deal directly with business partners except in the case of very large corporations.
Currently the industries which are showing most growth and offering the best opportunities are:
- Capital goods
- Electronics and TIC
- Electrical Goods
International Team Consulting is a consultancy with many year of experience in overseas markets and trade. Our team of professionals and well-honed tools will pave your way into the Algerian market and help in finding the ideal distribution channel for you. For further information, please do not hesitate to contact us.
Consultant at International Team Consulting