BY: Dr. Hana Saada
From Strategy to Execution—Algeria and the EU Forge a New Economic Alliance Centered on Stability, Nearshoring, and Sustainable Growth
Algiers, Algeria | April 24th, 2025 — A new chapter in Euro-Algerian relations is unfolding with remarkable momentum. During a pivotal visit to Algiers, Stefano Sannino, the newly appointed Director General for the MENA region at the European Commission, unveiled a resounding interest from the European business community in Algeria, announcing that no fewer than 250 European companies have expressed clear intentions to invest in the North African nation. The revelation came during the closing ceremony of the EU-Algeria Partnership for Sustainable Investment, hosted at the Sheraton Hotel in Algiers.
This surge in European corporate interest signals a decisive shift in the Euro-Mediterranean investment landscape. For both Algeria and the European Union, the urgency to redefine their economic partnership is no longer a matter of preference—it has become an unequivocal necessity, anchored in shared interests, strategic imperatives, and regional stability.
The ceremony served as a culmination of a high-stakes effort to deepen ties, and it revealed the contours of an ambitious and pragmatic roadmap for future collaboration. “This is not just diplomacy—it’s economic realism,” declared Omar Rekkache, Director General of the Algerian Investment Promotion Agency (AAPI), stressing that the current global and regional context, marked by profound geoeconomic transformations, demands bold action, accelerated coordination, and purposeful investment redirection.
Rekkache emphasized that the Algerian-European partnership must now move “beyond diagnostics and theory into the realm of tangible achievements and effective investments.” He called for translating political goodwill and strategic dialogues into concrete projects that generate jobs, enhance Algeria’s economic competitiveness, and simultaneously advance European interests in the region.
To promote this transition, AAPI has spearheaded a proactive outreach strategy. This includes the organization of three strategic seminars, the completion of a value chain study focused on high-relocation potential sectors, and fourteen investment scouting missions across European capitals, with the latest taking place in Athens just last week. The strategy seeks to market Algeria as a competitive destination for “nearshoring” and supply chain shortening, in line with European objectives of building resilient and proximate manufacturing hubs amid global uncertainties.
The initiative is already resonating with European investors seeking to de-risk operations and enhance market access. Nearshoring to Algeria offers both logistical advantage and cost-efficiency, given the country’s proximity to Europe and its abundant untapped potential in industry, energy, logistics, and innovation.
However, as Toufik Djouama, Director General for Europe at Algeria’s Ministry of Foreign Affairs, cautioned, the current volume of EU-Algeria trade and investment remains significantly below potential. “We must address the structural barriers with precision, recalibrate objectives, and conduct a thorough review of past initiatives,” he urged, calling for renewed efforts to align Euro-Algerian cooperation with national development priorities and mutual strategic interests.
Djouama struck an optimistic tone, affirming that the EU-Algeria investment partnership has already yielded “tangible and promising results”, and stressing that building upon these early wins will be critical to long-term success.
From the Algerian business community, Kamel Moula, President of the Algerian Council for Economic Renewal (CREA), issued a call to transcend mere rhetoric. “It is time to move beyond theoretical dialogue,” he declared. “Our cooperation must be built on a solid foundation of mutual interest and shared priorities—a genuine ‘win-win’ framework.”
Moula insisted that Algeria, which is committed to modernizing its economy and generating new employment opportunities, is fully aware of the importance of engaging in balanced and mutually beneficial international partnerships. “The EU seeks stability and secure supply chains in its southern neighborhood. We seek technological transfer and value creation for our economy,” he affirmed.
The alignment of these objectives offers a fertile ground for what could become one of the most consequential investment partnerships in the Euro-Mediterranean region. As both parties continue to refine their frameworks and deepen their engagement, Algeria is rapidly emerging as a key investment destination and strategic economic ally for Europe in an increasingly uncertain world.