During an official visit by a 40-member Algerian delegation to China, several Chinese companies expressed interest in direct investments in Algeria across diverse sectors, including bus manufacturing, pharmaceuticals, industrial equipment, and mining. This growing partnership highlights Algeria’s increasing role in China’s global economic strategy.
China views Algeria as a unique regional opportunity, combining infrastructure, a skilled local workforce, and access to key markets in Africa and Europe. For Beijing, Algeria is well-positioned to host regional production units under the Belt and Road Initiative.
Legislative Reforms and Signals of Openness
Companies like Bonluck, a bus manufacturer, expressed plans to establish a local production unit in Algeria to supply the region, supporting targeted industrial relocation. Chinese pharmaceutical firms are also eyeing local manufacturing of medicines and medical equipment.
This surge in interest is partly driven by Algeria’s recent reforms, particularly in investment laws. The updated mining law now allows foreign investors to hold up to 80% of mining projects, a significant shift from previous restrictions. The revision of the 51/49 rule, which limited foreign ownership in joint ventures, was also highlighted as a key factor boosting investor confidence.
Persistent Challenges for Foreign Operators
Despite a more favorable environment, Chinese firms noted technical constraints, particularly in transferring foreign currency abroad. The frequent reliance on parallel exchange channels slows investment processes and hinders large-scale industrial operations. Algerian authorities recognize that resolving these banking issues is critical to scaling up productive partnerships.
Discussions in Beijing underscored a shared commitment to deepening economic ties beyond traditional trade. The approach emphasizes technology transfers, local production, and leveraging Algeria’s human potential, paving the way for targeted industrialization and regional integration.
