Democratic Republic of Algeria

Located at the crossroads between the Mediterranean and the Sahel, Algeria is the largest country in Africa by land area, occupying a strategic position in the northern part of the continent. Although the country remains heavily dependent on the energy sector, in recent years the government has undertaken a series of reforms aimed at diversifying the economy, attracting foreign investment, and redefining the role of the State in key industries.

Algeria confirms its role as a strategic partner for Italy, thanks to substantial trade volumes and long-standing historical relations. In 2024, total trade between the two countries reached approximately €14 billion, with Italian exports to Algeria amounting to around €2.9 billion and imports from Algeria to about €11 billion. Within this framework, natural gas represents the main component of Italy’s imports, reaching roughly €9.4 billion in 2024, a slight decrease compared to the previous year.

From an operational perspective, Algeria has recently introduced new import measures affecting foreign companies intending to operate in its domestic market.
Starting from the second half of 2025, the country has implemented an import-planning mechanism requiring economic operators to submit in advance to the Ministry of Foreign Trade a forecast program outlining their expected needs in goods and services. The measure aims to strengthen governmental oversight of import flows and to prioritize those that support domestic production. This initiative highlights the authorities’ increasing focus on monitoring and coordinating imports within the framework of Algeria’s industrial-development policies.

Another significant aspect is that the new trade procedures allow import operations only for companies engaged in productive or industrial activities. The goal is to steer foreign trade toward operators that effectively contribute to the development of national production, while limiting imports intended solely for resale or purely commercial purposes.

At the institutional level, several official agencies have been established to facilitate foreign investment, including the AAPI (Agence Algérienne de Promotion de l’Investissement) and ALGEX (Agence Nationale de Promotion du Commerce Extérieur). These bodies serve as institutional contact points for the promotion and regulation of investment and foreign-trade operations. Despite the adoption of new regulatory measures and investment-promotion tools, Algeria’s business environment still requires a prudent and well-prepared approach.

Growing attention should also be noted toward new industrial sectors, as reflected in governmental plans and public announcements. For instance, an investment of approximately USD 60 billion is planned for the 2025–2029 period in the energy sector.

Overall, Algeria today represents a country in transition,  where opportunities for foreign enterprises coexist with the need for a deep understanding of the local regulatory and operational landscape. Its geographic proximity to Europe and the ongoing economic dialogue with Italy make Algeria a privileged partner for those seeking to invest in the southern Mediterranean with vision and continuity.