Tuesday 25 February 2025 
✏️ BY: Dr. Hana Saada
Algiers, Algeria | June 7th, 2024 — Algeria is launching a bold new industrial strategy aimed at strengthening its existing industrial base, boosting investments in key sectors, and fostering partnerships to facilitate technological know-how transfers. This initiative targets increasing the national industry’s contribution to the GDP from 5% to 15% within the next five to ten years, while also raising the integration rate from 10% to 30-40%.
Key Objectives
Kemal Agsous, president of the Algerian Subcontracting and Partnership Exchange (BASTP), underscores the critical need to improve the industrial integration rate to develop a robust national industry. The goal is to maximize the use of locally manufactured inputs and components. To achieve a 30-40% integration rate, the hydrocarbons sector, manufacturing industries, and the emerging automotive industry will play crucial roles.
Implementation Strategies
1. Public Sector Reform: Modernize and restructure public enterprises to enhance their competitiveness and productivity.
2. Investment Promotion: Target key sectors to attract both local and international investments.
3. Strategic Partnerships: Foster collaborations with foreign firms to benefit from their technological expertise and industrial experience.
4. Subcontracting Development: Increase the number of subcontracting companies, aiming to grow from 1,200 to 2,000 firms within the next three to four years.
Targeted Sectors
– Automotive Industry: A pivotal sector to drive the entire industrial value chain. Large-scale vehicle production is essential for making local subcontractors profitable and competitive.
– Hydrocarbons: Strengthen local production and processing capacities to reduce dependence on imports.
– Manufacturing Industries: Promote sectors such as mechanical, electrical, electronic, and metallurgical industries.
Global Integration and Partnerships
Algeria is focusing on partnerships with renowned foreign firms to import expertise and integrate into global value chains. These partnerships must be well-chosen to ensure quality production and export capabilities. Agsous emphasizes the importance of starting immediately to initiate a cumulative process and improve national economic integration.
Reducing Imports
A major goal is to halve the imports of industrial inputs and components within three to four years. Currently, 70% of these inputs are imported. Achieving this would significantly bolster Algeria’s industrial self-sufficiency.
In conclusion, Algeria is committing to an ambitious and integrated industrial strategy aimed at diversifying its economy, improving local integration, and reducing import dependency. Reforms, targeted investments, and strategic partnerships are the cornerstones of this new industrial dynamic.
Translated from: https://lalgerieaujourdhui.dz/lalgerie-se-fixe-une-nouvelle-ambition-industrielle/
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