Algeria and Chad Forge Strategic Partnership with New Bilateral Agreements
Image: El Mawkie
Takeaway
The agreements between Algeria and Chad signal a strategic push to diversify Algeria's economic partnerships and expand its influence in the Sahel region. Energy executives should monitor the Sonatrach-SHT refinery project for potential investment opportunities and supply chain implications. Investors should also watch for the development of Algerian factories in Chad, particularly in mining and renewable energy.
Algeria and Chad deepened their bilateral relations, signing a series of agreements during Chadian President Mahamat Idriss Déby Itno's official visit to Algeria from April 22 to April 24, 2026. The agreements, overseen by President Abdelmadjid Tebboune and President Déby Itno, aim to enhance cooperation across various sectors and build an integrated strategic partnership. A joint statement released by the Algerian Presidency affirmed the two countries' commitment to strengthening bilateral ties and elevating them to a level of brotherhood and solidarity.
The agreements build upon President Déby Itno's previous visit to Algeria in September 2025, where both leaders expressed their intent to strengthen their strategic partnership. The fourth session of the Joint Cooperation Commission, held in Algiers on April 21, 2026, preceded the signing of the agreements. Algerian Foreign Minister Ahmed Attaf emphasized that Algerian-Chadian relations are poised to open unprecedented opportunities and begin a new stage in their history. Chad's Foreign Minister Abdoulaye Sabre Fadoul highlighted the ambition of both countries to develop a strategic relationship built on complementarity.
The signed agreements cover a wide range of sectors, including public works, communications, youth affairs, animal health, the pharmaceutical industry, air transport services, higher education and scientific research, industry, and trade. A key agreement involves Sonatrach, Algeria's state energy firm, and Chad's hydrocarbons company (SHT) collaborating to construct a refinery with a production capacity of up to 20,000 barrels of oil per day. A framework agreement with the Algerian Petroleum Institute aims to strengthen Chad's oil sector. The two countries also signed a trade agreement to expand cooperation and support trade exchanges.
The Algerian Agency for Investment Promotion (AAPI) and the Chadian National Agency for Investments and Exports (ANIE) signed a memorandum of understanding to promote and facilitate investments in both countries. The agreement provides a practical framework for cooperation in promoting, facilitating, and supporting investments. A bilateral trade agreement was signed between the Algerian Ministry of Foreign Trade and Export Promotion and the Chadian Ministry of Trade and Industry. Additionally, Algeria and Chad agreed to reciprocal visa exemptions for holders of diplomatic and service passports and established regular political and diplomatic consultations.
Looking ahead, the agreements are expected to foster stronger economic ties and regional integration. The partnership aims to enhance collective capacity to confront security threats, economic shocks, and external pressures in the Saharo-Sahelian region. The Algerian-Chadian Business Council is expected to receive renewed impetus to drive trade and investment. Algeria has also expressed its willingness to train a greater number of Chadian managers and share its expertise to support Chad's development.