$49.45 Million in Italian Farm Machinery Enters Algeria
Algerian imports of Italian agricultural machinery and equipment recorded a significant increase in 2025, reaching $49.45 million, up from $34.43 million in 2024. This data was presented during an economic meeting held in Algiers on September 28, focusing on the mechanization and digital transformation of agriculture. The gathering, organized by the Italian Trade Agency in collaboration with FederUnacoma, brought together 13 Italian companies specializing in agricultural equipment and approximately 90 Algerian economic operators, with discussions extending to the development of industrial partnerships between firms from both nations. Algerian authorities aim to bolster agricultural production and decrease reliance on external supplies.
The agricultural sector is a key component of Algeria's economy, contributing about 14% to its gross domestic product. In 2024, the sector's production was estimated at $38.2 billion, supporting over 2.7 million jobs across approximately 1.3 million businesses. National production currently fulfills nearly 73% of the country's agricultural needs. The national plan for agricultural productivity development, whose main axes were presented at the meeting, emphasizes enhancing yields for strategic crops, improving mechanization across various production stages, managing post-harvest losses, and expanding storage capacities. Efforts are also concentrated on better water management, the mechanization of the production cycle, and the adoption of precision agriculture, including technologies such as drones, remote sensing, and artificial intelligence.
To support this growth, Algeria is strategically developing its storage infrastructure, with plans to increase current capacity from approximately 4 million tonnes to 9 million tonnes. This expansion includes the construction of 36 strategic silos with a total capacity of 3 million tonnes, alongside 350 local storage centers capable of holding 1.75 million tonnes. Additionally, 16 metallic silos are being added, providing an overall capacity of 250,000 tonnes, with the first metallic silo operational since August. The delivery of the 36 strategic storage systems is expected to commence in the second quarter of 2027. Furthermore, Agrodrive, a public company, has been established to create and manage a national fleet of agricultural machinery, enabling farmers and investors to access essential equipment without needing to finance their full acquisition.
Agricultural cooperation between Algeria and Italy also encompasses a major project in Timimoun, southern Algeria, led by the Italian group BF Spa. This initiative involves the cultivation of approximately 36,000 hectares dedicated to cereals, legumes, and oilseeds, and includes the development of processing units, silos, and other vital agricultural infrastructure. A framework agreement signed in July 2024 outlines a 420 million euro investment through a partnership between BF Spa and Algeria's National Investment Fund, with Italian participation at 51% and Algerian at 49%. This project is anticipated to create over 6,700 jobs, including more than 1,560 direct positions, contributing to the broader economic development and diversification of trade relations between the two countries.
