près de 13.000 projets d’investissement enregistrés jusqu’à mars courant
Summary of Investment Trends in Algeria
As of March 1, 2023, the Algerian Investment Promotion Agency (AAPI) reported a significant inflow of investment initiatives in the country, with nearly 13,000 declared projects amounting to an impressive 5,776 billion Algerian Dinars (DA). These projects are projected to generate over 316,000 jobs, a positive economic outcome asserted by the agency.
From November 1, 2022, signaling the initiation of the AAPI’s operational activities, until early March 2023, the agency documented a total of 12,843 projects. These projects include local investments predominantly, with 12,608 projects valued at 4,587 billion DA, anticipated to create about 288,000 jobs. In comparison, 235 foreign investments, valued at 1,189 billion DA, have the potential to generate 20,000 jobs. The foreign projects consist of 89 direct foreign investments and 146 partnerships with foreign entities.
Sector Distribution of Investments
The investment landscape reveals diverse engagement across various sectors. The industrial sector leads, encompassing 37% of total projects, followed by transport (22.2%), construction and public works (22%), agriculture (7.2%), services (4.6%), tourism (3%), health (2.7%), and mining (0.8%). Such a distribution indicates a robust inclination towards industrial and infrastructural investments, which are critical for Algeria’s economic development.
Geographic Distribution of Projects
Geographically, the distribution of these investments showcases a predominance in northern Algeria, where 51.3% (6,595 projects) are located. In contrast, the High Plateaus account for 27.5% (3,527 projects), and the southern region comprises 21.2% (2,721 projects). This geographical spread illustrates that investment activities are not solely concentrated in the urban north but also extend to the nation’s interior and southern regions, hinting at efforts to promote balanced regional development.
Investment Structure and Financing
A notable aspect of the AAPI’s findings is the structure of investments, with an overwhelming 99% of the projects originating from the private sector (12,752 projects), while only 85 projects are related to the public sector, and 6 stem from joint ventures. Regarding financial structuring, over 45% of these endeavors are financed via self-funding sources (5,799 projects), while roughly 55% (7,044 projects) rely on bank loans. This dual approach to funding indicates a mixed strategy adopted by investors to bolster their project executions.
Role and Mandate of the AAPI
Established in 2022, the AAPI operates under Algeria’s new investment law, empowering the agency to facilitate and guide investment projects from both domestic and international stakeholders across various economic sectors focused on producing goods and services. By acting as a centralized point of support, the agency aims to streamline the investment process, ensuring transparency, efficiency, and the creation of a conducive environment for potential investors.
In summary, the latest data from the AAPI paints a promising picture for Algeria’s investment climate, highlighting a diverse range of sectoral interests, a potentially balanced geographic distribution of projects, and a strong inclination towards private-sector-led initiatives. With the AAPI’s proactive role and the favorable investment laws instituted, Algeria is poised for a more dynamic economic landscape, encouraging both local and foreign investors to explore opportunities within the country’s borders.
