ALGIERS- Economic diversification in Algeria has become a tangible reality, according to the World Bank, stressing that the country embarking on a new chapter in its economic history, buoyed by a growth in non-hydrocarbon exports and the improvement of the business climate.
“Long reliant on hydrocarbons, Algeria is now charting a bold course toward economic diversification,” the World Bank says in an article published on its website, intitled “How Algeria is Crafting a Dynamic Economy for Tomorrow.”
According to the Bretton Woods institution, “the country is undergoing a profound shift to reduce dependence (on hydrocarbons) and attract foreign investment.”
“Recent measures” to diversify national economy, it noted, “are beginning to yield tangible results,” as “non-hydrocarbon exports tripled” in 2023 compared with 2017.
“Key exports include fertilizers, steel products and cement, signalling early successes in broadening Algeria’s economic base,” it says, underscoring “the importance of further expansion and diversification efforts.”
Among the key strategic reforms, the World Bank cites the Algerian Port Community System (APCS), launched in July 2021 and developed with World Bank expertise.
“This digital platform connects all port stakeholders and reduces cargo clearance times by linking customs, shipping lines and exporters on a single interface.”
Algeria’s 2022 Investment Law, the World Bank says, is a “key element of these efforts and is designed to attract domestic and foreign investors,” with various “incentives such as tax exemption, customs duty waivers, and streamlined administrative procedures, through the newly established Algerian Investment Promotion Agency (AAPI).”
“The AAPI has rolled out an online platform to simplify investors’ journey, facilitating access to land, information and incentives digitally.”
Algeria’s agricultural sector has also “made strides,” particularly in “exporting fresh food products,” according to the World Bank, commending the efforts to enhance the capabilities of the National Accreditation Agency (ALGERAC).
This agency is a “key player in ensuring export product quality,” says the WB’s article, noting that “the number of accredited laboratories rose to 135 from 77 in 2021, to 75 percent increase in three years.”
