Industrial Sector Achieves Strong Growth, Exceeds 10% GDP Share

Algeria's industrial sector has demonstrated robust growth and a significant leap forward in recent years, undergoing a transformation from primarily meeting internal demand to producing quality goods competitive in external markets. This evolution reflects a strategic path to build an industry that integrates with and is sustained by the energy, mining, and agriculture sectors, thereby generating wealth and adding value to the national economy. Economic experts note that industry's contribution to the Gross Domestic Product (GDP) has risen significantly from 3-4% to over 10% within the last six years, with a presidential commitment to further increase this share to 15% of the national economy.

This new phase of industrial development is marked by a renewed focus on restoring production capacity, expanding the manufacturing base, and supporting productive investment. Key initiatives include the new Investment Law No. 22-18, which provides substantial incentives for both local and foreign investors, and the digitization of investment processes to enhance transparency and efficiency. Efforts are also underway to revive inactive industrial units, exemplified by projects like the glass complex in Tebessa and the plastic components unit in Tissemsilt, allowing the country to leverage existing capacities rather than starting anew. Furthermore, there is a strong emphasis on deepening local integration by producing components and intermediate materials domestically, shifting away from simple assembly to foster true industrial development.

The expansion of the industrial fabric is a comprehensive endeavor that involves both the private and public sectors. The private sector has seen considerable growth across various fields, including electronics, home appliances, mechanical industries, and building materials, with some enterprises successfully entering export markets. Concurrently, public industry, with its significant heritage, is undergoing re-evaluation to ensure its units are productive and competitive in the modern economy. This industrial expansion is intrinsically linked to job creation, providing both direct and indirect employment opportunities, and necessitates aligning university and vocational training with the specific needs of industrial enterprises. Algeria is strategically building an industrial base designed to produce, integrate, employ, and export, thereby creating a sustainable production capacity and positioning itself as a promising African industrial hub.