Algeria’s Economy

Algeria’s Economic Outlook

Algeria‘s economy has been steadily progressing over the years. The country is full of resources and the government aims to ramp up different industries in an attempt to diversify from its oil-export reliance. We take a closer look at Algeria’s economy – backed by facts and figures.

Currency: Dinar (DA)

Population: 40.8 million

GDP: $612.5 billion

Growth rate: 3.7%

Inflation: 6.4 %

Unemployment: 11.2%

Major industries: Agriculture, Cement, Clothing, Fertilizers, Food Processing, Iron and Steel, Mining, Machinery, Oil and Natural Gas Production and Refining, Petrochemicals, Textiles, Transport Equipment, Wine Production.

Primary Products: Barley, Cattle, Cereals, Citrus Fruits, Copper, Dates, Fish, Grapes, Iron Ore, Lead, Livestock, Oats, Oil and Natural Gas, Olives, Phosphates, Sheep, Timber, Uranium, Vegetables, Wheat, Zinc.

Main exports: Crude Oil, Dates, Fruit and Vegetables, Natural Gas, Petroleum Products, Wine.

Main Trading Partners: France, Germany, Japan, the US, Italy, the UK, Spain, Belgium and the Netherlands.

Economic facts about Algeria

Key industries in Algeria analyzed

Oil and Gas

Accounting for around 35 percent of the country’s gross domestic product, the oil and gas sector is economic pillar of Algeria. Since joining the Organization of the Petroleum Exporting Countries (OPEC) in 1969, Algeria gradually reached the top three oil producers in the region. Currently, crude oil production amounts to 1000 barrels a day and the reports suggest the country holds the third largest oil reserves in Africa. More than 80 percent of its gas production goes towards Europe and The International Monetary Fund says 60 percent of Algeria budget come from oil and gas revenues.


Since the early 1970’s, high grade minerals such as zinc, mercury and iron ore have been another positive source of income for the country. Algeria counts over 950 non-fuel mineral operations, which includes joint ventures of state-owned and private companies involved in gold and other minerals. The Algerian government gives high priority to the mining industry and aims to exploit their rich natural potential to revive industrial production. The mining industry is considered a strong alternative to the hydrocarbon industry – the country is aiming to diversify its economic activities.


Agriculture accounts for around 10 percent of the country’s GDP and at least 14 percent of employment. Algeria has about 8.5 million hectares of land suitable for growing crops, which represents only 3.5 percent of its total surface. One third of the cultivable land in Algeria is the government’s property – this mainly goes on lease to farmers and private investors. Algeria’s main crops are cereals (mainly wheat and oats, vegetables and citrus fruit and dates. While investing in the agriculture sector in Algeria may be profitable, the venture should be able to cater for irrigation, since the country has faced serious droughts in the past. Importation of agricultural commodities and food amounts to almost $9.3 billion.

FMCG & Retail

Algeria is the second largest grocery retail market in North Africa and the fourth of the whole African continent. For a long time, the distribution market was primarily controlled by public companies but over the last decade, private owned stores dominate the retail sector. European investments have pushed private businesses in control of around 95 percent of the industry. With almost 75 percent of needs being imported, Algeria is the major importer of food products in Africa. Euromonitor International ranks the country on third spot for milk and dairy products imports. Figures from the Algerian Register of Commerce (2016) points that there were 1415 retail markets, 38 Hypermarkets and 232 supermarkets in the country.

Engineering and Construction

The construction sector in Algeria remains highly promising, despite volatile global oil prices. The government is reiterated its support for the sector with an investment plan worth $275.9 billion on a five-year investment plan (from 2015-2019). One of the main objectives of this plan is to move towards a diversified economy and reduce its over-dependency on the oil sector. One key measure adopted by Algeria to reduce the country’s import bill was the amendment of the law for the construction and engineering sector; property developers with projects partially or fully financed by the state must use locally produced building materials instead of imported ones. Results from this were significant – purchases of iron and steel fell by 34% year on year to $827.9 million, wood imports declined 29% to $390 million.

algeria imports and exports

Doing business in Algeria

Setting up a business in Algeria can be smart move. The government welcomes foreign investments in many sectors, especially in the key industries we mentioned earlier. Perks of setting up a business in Algeria include low cost for fuel, gas and electricity.

There are four legal types of companies in Algeria:

  1. Limited Liability Company (LLC) – minimum capital required is 100,000 dinars ($861.7), divided in 1000 dinars ($8.62) shares. Partners liabilities are limited to the amount of their contributions.
  2. Corporation – minimum capital required is 1,000,000 dinars ($8617.4) and a minimum of seven shareholders. Liability depends on the amount of their contributions.
  3. Partnership Company – no minimum capital required. Partners have defined liabilities
  4. Limited Shares Company – no minimum capital required. Can have two types of partners; general partners and limited partners, where liability depends on amount of their contribution.
How can Africa HR Solutions help you setup your business in Algeria

Africa HR Solutions offers wide array of services to facilitate the employment and management of your employee’s. We allow you to legally employ people without having a registered entity. We cover over 40 countries on the African continent, including Algeria. Our company can act as your employer of record and hire on your behalf, allowing you to focus on your business. Our solution will ensure compliance and peace of mind while operating anywhere on the continent.

We are experts on the African continent and we can help you address key governing laws pertaining to:

Employment Outsourcing / Recruitment

Payroll Outsourcing

Expat Immigration

Medical Insurance and Repatriation Insurance

Tax Compliance

Offshore Services and Payments

Africa HR Solutions also provides you with salary surveys, which can help you get an idea of the salary scale in different industries in Algeria.

Contact us today for a no-obligation consultation about your upcoming venture.

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Grant Geraghty is the longest-serving member of the Africa HR team. This resident subject matter expert and client champion is responsible for gaining a deep understanding of our clients’ unique HR needs in Africa and providing tailored solutions that align with their business objectives. Grant collaborates closely with our clients to ensure that their requirements are properly implemented, providing ongoing support and guidance throughout the process.

Grant brings a wealth of experience to his role, having served as Africa HR’s longest-serving employee. He holds a Bachelor of Commerce degree, with a major in Economics and Business Finance, from the University of Natal in South Africa. Additionally, he has completed a certification program in Payroll and Tax Administration from the University of Cape Town, further enhancing his expertise in HR operations and compliance.

His commitment to delivering exceptional service and his extensive knowledge of HR in Africa make him an invaluable member of the Africa HR team.




Kevina Takoordyal has a BA Hons Business Management from the University of Glamorgan, UK, with MBA in leadership and Innovation, MBA General, PMP Certified, and Agile Scrum Master. She currently works as the Head of Operations at Africa HR Solutions Ltd with more than 20 years of proven leadership capabilities in Operations, Business Development, People Management, Process Optimization, and Project Management in the Financial Services, BPO, Banking Industry, and Heath Care Industry. In Senior leadership roles with an international footprint across Europe working and extensive Pan- African experience from a compliance, finance, and operations angle, Kevina comes across with a panoply of cross-functional skills. Kevina also serves on a few Boards, Non-Independent Executive at MioD and for NGOs on a voluntary basis, a coach and mentor to aspiring female leaders across Africa and Mauritius.

Kevina is a firm believer in Servant Leadership with a strong focus and commitment to uplifting others, with the ability to deliver through a highly engaged – diverse team, and works towards consistently synergistic value creation. While being a focused and adaptive thinker and Kevina is actively participating in panel discussions on Innovation, CX, Digital transformation.

Kevina serves as Project Assessor for the National Youth upskilling program. She has been recognized as Global Talent in a few companies, Ceridian, and International SOS Ltd whereby she has been awarded a few scholarships and had the opportunity to be mentored by Senior Vice President in the US. Award Winner in various fields and at a national level and recognized including Super Achiever Leader Award in Africa in 2016, Awarded Africa Women Leader 2018.



Head of Finance & Business Support

Viloshna is an experienced finance professional with 18 years of expertise in strategic financial planning, financial analysis, cash flow management, systems and controls implementation, financial reporting, and continuous process improvements. She currently serves as Head of Finance & Business Support, where she has successfully automated and leveraged the financial reporting system capabilities to ensure efficient company operations.

Viloshna’s background includes senior roles in a multinational pharmaceutical company and a large listed Mauritian conglomerate. Her meticulous attention to detail and strategic thinking have streamlined financial processes, making her a valuable addition to any finance team. Viloshna is a qualified finance professional with an FCCA qualification and an MBA, bringing valuable expertise to any organization.

In her current role, Viloshna leads the company’s Treasury and Payments function, including the fulfillment of the company’s cross-border payments into Africa. With her strong educational background and extensive experience, Viloshna consistently demonstrates her ability to optimize financial operations, minimize risks, and improve profitability. Her expertise in financial reporting and process improvements make her a valuable asset to any organization.



Head of Legal & Compliance

A qualified lawyer who joined Africa HR Solutions in July 2020, Mark Du Preez has experience working in private practice for a reputable law firm in South Africa. He also played commercially focused roles at a leading private bank, wealth management company, and outsourcing firm in South Africa and Mauritius.

Mark has played a pivotal role in Africa HR Solution’s risk mitigation strategy, which positively impacted P&L performance over the years.

He currently leads the Partnerships function of the company including relationships and oversight with in-country partners (ICPs) across Africa.

alex daruty


Head of Commercial

Alex has more than 15 years of experience in the global, strategic development of both enterprise and consumer brands in categories including technology, transport, enterprise software, entertainment, and travel.

With experience in roles on both agency and corporate side, he has worked across international brands and has led the development and execution of multi-discipline campaigns across EMEA, NORAM and Asia Pacific.

His focus is on driving meaningful business impact through brand differentiation and building high-functioning, digitally oriented, and analytically driven capabilities. He is motivated by working with, and developing dynamic people, teams, and organizations.

He leads, manages, develops and mentors the Key Account Management department, including line management responsibility for the team of Key Account Managers and Key Account Administrator who represent the Company as the primary communication link between all relevant stakeholders, including clients, third party in-country partners and internal functions.

Originally from Mauritius, he holds bachelor’s degrees in International Business, Finance and Management from the University of Nevada, Reno.