Local Automobile Industry Eyes 2028 Goal with German, Italian Partners
President Abdelmadjid Tebboune has affirmed Algeria's objective to achieve fully integrated local automobile production by the close of 2028. This ambitious goal involves collaboration with German and Italian partners, with the scope of local manufacturing extending beyond simple assembly to include essential components such as gearboxes and wheels. The President emphasized that this target is considered achievable through established strategic plans.
This initiative is a core component of Algeria's broader strategy to develop its national economy and lessen its dependence on hydrocarbons. President Tebboune highlighted the recent growth in the industrial sector, noting a 10 percent increase in its contribution to the Gross Domestic Product and a visible momentum in factory openings across the country. He further noted that Algeria has emerged as the third-largest economy in Africa, signaling a significant recovery and transformation from its state prior to 2019, which was largely reliant on oil revenues and what was described as unregulated import policies.
The nation's economic transformation extends to a comprehensive shift from a controlled to a free economy, managed carefully to prevent the economic and social imbalances observed in other countries during similar transitions. Further bolstering its economic resilience, Algeria has significantly reduced its import bill by approximately $40 to $42 billion, prioritizing essential imports and boosting national production. Achievements in self-sufficiency include halting the import of gasoline and jet fuel, with plans to cease diesel imports once the new Hassi Messaoud refinery commences operations, and local pharmaceutical production now meeting 84 percent of national needs, encompassing complex medications for diabetes and cancer. These efforts, combined with 13,000 real investment projects and the upcoming full activation of the National Single Investment Window in January 2027, underpin the President's optimism for a robust national economy by 2027.
