Algeria Records $70 Billion in Investment Projects Amidst Government Push for Economic Diversification
Image: TSA
Takeaway
The $70 billion in investment projects signals a growing confidence in Algeria's economic potential, particularly in sectors beyond hydrocarbons. International investors should analyze the AAPI's project pipeline and target opportunities aligned with Algeria's diversification strategy. Companies in mining, agriculture, and infrastructure could see significant upside, but must factor in potential regulatory risks and bureaucratic delays.
Algeria has registered approximately $70 billion in national and foreign investment projects over the past four years, according to Omar Rekkache, Director General of the Algerian Agency for Investment Promotion (AAPI). Rekkache announced this figure in an interview on Algerian Television, highlighting the agency's assessment of national and foreign investment within Algeria. The AAPI, under the authority of the Prime Minister, supports domestic and foreign investors in implementing their projects.
President Abdelmadjid Tebboune presided over a Council of Ministers meeting on April 5, 2026, focusing on a draft law concerning commercial activities, presentations on the mechanization of the agricultural sector, the mining sector's prospects, and the recovery of funds diverted by former oligarchs. Tebboune has emphasized strengthening the national economy and reinforcing sovereignty through a comprehensive development plan. He has also stressed the importance of diversifying Algeria's economy to increase non-hydrocarbon exports. In December 2025, Tebboune highlighted an “unprecedented investment momentum,” noting the participation of foreign investors in 309 projects.
Several mega-projects are underway to bolster Algeria's self-sufficiency and diversify its economy. The Gara Djebilet iron mine in Tindouf is projected to produce 12 million tonnes of iron per year starting in 2025, potentially saving Algeria $2 billion annually by eliminating iron imports. A phosphate deposit in Tebessa is planned for 80 years of operation, supporting food security from 2027. Additionally, a zinc and lead project in Béjaïa aims to produce 170,000 tons of zinc and 30,000 tons of lead annually by November 2026.
These investments span various sectors, with a focus on hydrocarbons, construction, transport, and agriculture. The United States is the leading investor in Algeria, holding 29% of the investment stock, followed by Italy and France, each with 10%. The government is actively promoting investment in non-hydrocarbon sectors, including agriculture, manufacturing, and services, to reduce the country's dependence on oil and gas revenues.
Investors should monitor upcoming decisions related to the commercial activities law and the progress of key projects like Gara Djebilet and the Tebessa phosphate deposit. The zinc and lead project in Bejaia is expected to produce 170,000 tons of zinc and 30,000 tons of lead yearly in November 2026. Keep an eye on potential regulatory changes and bureaucratic hurdles that could impact project timelines and profitability.