Macroeconomic trade context

Annual trade volume, 2023

• Total trade: $86.4 billion (DA 11,800 billion)
• Exports: $42.8 billion (DA 5,840 billion), down 14.2% from the 2022 record
• Imports: $43.6 billion (DA 5,960 billion), up 8.6% from 2022
• Trade balance: a $0.8 billion deficit (the first deficit since 2018)
• Trade-to-GDP ratio: 42.3% (exports: 20.9% of GDP)
• Global rank: 60th largest exporter, 57th largest importer
• World export share: 0.2%
• Currency: Algerian dinar (DZD), $1 ≈ 136 DZD (official) and ≈ 210 DZD (parallel market)

Export markets, 2023 ($42.8B / DA 5,840B)

Import origins, 2023 ($43.6B / DA 5,960B)

Export products in detail

A. Hydrocarbons ($37.8B, 88.3%)

Natural gas: $19.2B (44.9%)

• Pipeline gas, $14.4B: to Italy $8.4B (via the TransMed pipeline), to Spain $4.2B (via the Medgaz pipeline), to France $1.8B (via the Spain–France interconnector)
• LNG, $4.8B: from the Arzew LNG plant $3.6B, from the Skikda LNG plant $1.2B

Crude oil: $14.4B (33.6%)

• Saharan Blend: $10.8B (light, sweet crude)
• Condensate: $2.4B
• Other crudes: $1.2B
• Main export terminals: Arzew, Skikda and Bejaia

Refined petroleum products: $3.6B (8.4%)

• Diesel: $1.8B
• Gasoline: $1.2B
• Jet fuel: $0.6B

LPG and NGLs: $0.6B (1.4%)

B. Non-hydrocarbon exports ($5.0B, 11.7%)

Fertilisers and chemicals: $2.2B (5.1%)

• Ammonia: $1.2B
• Urea: $0.8B
• Other chemicals: $0.2B

Semi-finished products: $1.2B (2.8%)

• Iron and steel: $0.6B
• Aluminium: $0.4B
• Other metals: $0.2B

Food products: $0.8B (1.9%)

• Dates: $0.3B (the world’s 3rd largest exporter)
• Olive oil: $0.2B
• Fresh vegetables: $0.1B
• Other foodstuffs: $0.2B

Other products: $0.8B (1.9%)

• Cork and wood: $0.2B
• Textiles: $0.2B
• Miscellaneous: $0.4B

Import products in detail

A. Capital goods ($13.1B, 30.0%)

Industrial machinery: $5.2B

• Oil and gas equipment: $2.4B
• Construction machinery: $1.2B
• Agricultural machinery: $0.8B
• Other industrial machinery: $0.8B

Electrical equipment: $4.8B

• Power generation equipment: $2.2B
• Electrical machinery: $1.8B
• Electronics: $0.8B

Transport equipment: $3.1B

• Passenger cars: $1.8B (200,000 units a year)
• Commercial vehicles: $0.8B
• Aircraft and parts: $0.5B

B. Consumer goods ($10.9B, 25.0%)

Food and beverages: $8.7B (20.0% of total imports)

• Cereals: $3.6B (wheat: $2.4B)
• Milk and dairy products: $1.8B
• Sugar: $1.2B
• Coffee and tea: $0.9B
• Other foodstuffs: $1.2B

Pharmaceuticals: $2.2B (5.0% of total imports)

C. Intermediate goods ($13.1B, 30.0%)

• Iron and steel: $4.8B
• Plastics: $3.6B
• Chemical products: $2.4B
• Paper and paperboard: $1.2B
• Other intermediate goods: $1.1B

D. Services and other imports ($6.5B, 15.0%)

Trade procedures and regulations: a deep dive

A. Customs declaration process

Regulatory framework

• Primary authority: Algerian Customs (Direction Générale des Douanes, DGD)
• Legal basis: the Customs Code (Ordinance 08-01), the Commercial Code and the Investment Law
• Trade agreements: member of the Arab Maghreb Union and the African Continental Free Trade Area (AfCFTA); WTO observer
• Currency controls: strict foreign exchange regulations

Import licensing system: import categories

1. Prohibited imports: weapons, narcotics, certain chemicals and used clothing
2. Restricted imports: require prior authorisation (500+ product categories)
3. Free imports: most capital goods and raw materials
4. Subject to quotas: certain agricultural products

Import licence requirements

• Capital goods: a certificate of non-manufacture is required
• Consumer goods: a market study and prior authorisation
• Food products: health certificates and pre-shipment inspection
• Pharmaceuticals: Ministry of Health approval

Timeline: pre-import procedures

1. Import licence application: 30–60 days before shipment
2. Foreign exchange authorisation: from the Bank of Algeria (required for all imports)
3. Pre-shipment inspection: for goods over €5,000 (by approved inspection companies)
4. Document legalisation: at the Algerian consulate in the exporting country

Timeline: customs clearance

• Documents required: 15–20 days after arrival
• Physical clearance: 3–7 days if there are no issues
• Special procedures: up to 30 days for restricted goods

Mandatory documents for all imports

1. Commercial invoice (in French or Arabic, certified by the Algerian consulate)
2. Certificate of origin (legalised by the Algerian consulate)
3. Bill of lading or air waybill
4. Packing list
5. Import licence (for restricted goods)
6. Foreign exchange authorisation
7. Pre-shipment inspection certificate (for goods over €5,000)
8. Insurance certificate
9. Health or phytosanitary certificates (where applicable)
10. Technical documentation (for machinery and equipment)

Special requirements

• All documents must be in French or Arabic
• Consular legalisation is mandatory for many countries
• Documents must be originals or certified copies
• Validity periods are strictly enforced

B. Taxation and duties

Customs duties: tariff structure

• Most favoured nation (MFN) rates: 5–30%
• Preferential rates: under the Arab Maghreb Union and bilateral agreements
• High protection: for locally produced goods
• Temporary suspensions: for strategic imports

Duty rates by category

Value added tax (TVA)

• Standard rate: 19%
• Reduced rate: 9% (basic necessities)
• Zero rate: exports
• Exempt: certain medical products and educational materials
• Registration threshold: DA 3 million annual turnover

Special consumption taxes

• Alcohol: 100–200%
• Tobacco: 150%
• Luxury vehicles: 100%
• Electronics: 30%

Additional charges

• Statistical tax: 1% of CIF value
• Customs processing fee: 0.5%
• Port and airport charges: 1–3%
• Bank commission: 0.1–0.5%

Import deposit requirement

• 120% of CIF value must be deposited in an Algerian bank
• Held for at least 9 months
• A major barrier to trade that increases costs by 15–20%

C. Special procedures

Investment regime

• 2022 Investment Law: simplified procedures for foreign investors
• Sectors: priority for non-hydrocarbon investment
• Incentives: tax holidays and customs duty exemptions
• Requirements: a minimum 51% Algerian partnership in most sectors

Free zones

• Bellara Free Zone: an industrial zone in Jijel
• Special economic zones: planned in several regions
• Benefits: customs duty exemptions and tax incentives
• Limitations: few zones are operational

Temporary admission

• For exhibitions and professional equipment
• Requires a bank guarantee
• Maximum 12 months

Processing trade

• Inward processing: for re-export
• Outward processing: limited availability
• Requirements: a bank guarantee and approval from the Ministry of Industry

D. Sector-specific regulations

Food and agricultural products

• Ministry of Agriculture approval: required for all imports
• Halal certification: mandatory for meat products
• Health certificates: from the country of origin
• Shelf life: at least 50% remaining
• Labelling: Arabic and French mandatory, with nutritional information

Pharmaceutical products

• Ministry of Health registration: a 12–18 month process
• Good Manufacturing Practice certification: required
• Price control: the government sets maximum prices
• Distribution: through authorised channels only

Automotive sector

• Type approval: from the National Agency for Vehicle Approval
• Emission standards: Euro 4 for petrol, Euro 5 for diesel
• Age restrictions: used vehicles no older than 3 years
• Local assembly requirements: for CKD imports

Construction materials

• Quality certification: from the Algerian Institute of Standardisation
• Technical approval: for structural materials
• Import quotas: for cement and steel

Telecommunications equipment

• ARPT approval: from the regulatory authority
• Type approval certification: required
• Restrictions: on certain encryption technologies

E. Foreign exchange controls

Exchange regulations

• Centralised system: the Bank of Algeria controls all foreign exchange
• Import financing: through Algerian banks only
• Documentation: a complete set is required for each transaction
• Time limits: payments must be made within specified periods

Payment procedure

1. Obtain the import licence
2. Submit a foreign exchange request to the importer’s bank
3. The bank submits the request to the Bank of Algeria
4. Approval is granted based on available reserves
5. Payment is made through approved channels

F. Digital systems and automation

SYDONIA World++ system

• An ASYCUDA-based customs management system
• Implemented in 2018
• Electronic declaration is possible but limited
• Integrated with other government systems

E-Douane portal

• Online customs declarations
• Electronic payment system
• Limited functionality compared with more developed systems

Paper-based procedures still dominate

• Physical document submission is required
• Multiple copies are needed
• Manual processing is common
• Digital integration is limited

Planned improvements identified in our early-2024 analysis

• Full digitalisation, targeted for 2025
• Development of a single window system
• Electronic certificates of origin
• A blockchain pilot for hydrocarbons

Trade agreements network

Regional agreements

1. Arab Maghreb Union (UMA): with Tunisia, Morocco, Libya and Mauritania
2. Greater Arab Free Trade Area (GAFTA): with 17 Arab countries
3. African Continental Free Trade Area (AfCFTA): ratified, implementation ongoing
4. Euro-Mediterranean Association Agreement: with the EU (2005)

Bilateral relationships

1. France: a historical trade relationship
2. Italy: a major energy partner
3. China: a comprehensive strategic partnership
4. Türkiye: a growing trade relationship

EU–Algeria Association Agreement

• In force since 2005
• Gradual tariff elimination for industrial products
• Limited agricultural concessions
• Rules of origin requirements
• Dispute settlement mechanisms

Major trade infrastructure

Mediterranean ports (annual tonnage)

Border crossing points

Land borders

• Tunisia: 6 crossings (Oum Teboul is the main one)
• Morocco: closed since 1994
• Libya: 2 crossings (Debdeb is the main one)
• Mauritania and Mali: southern desert crossings

Maritime links

• Ferry routes: to France, Spain and Italy
• Pipeline connections: to Europe

Transport infrastructure

• Rail network: 4,200km, limited capacity
• Road network: 113,000km, variable quality
• Airports: 35 airports, limited cargo capacity
• Pipeline network: extensive gas and oil pipelines

Emerging trends and future developments

Economic diversification

• 2022–2026 Economic Recovery Plan: $40 billion of investment
• Non-hydrocarbon exports target: 25% of total exports by 2030
• Priority sectors: agriculture, pharmaceuticals and renewable energy
• Import substitution: incentives for local production

Renewable energy development

• Solar energy plan: 15,000MW by 2035
• Wind energy: a 5,000MW target
• Green hydrogen: pilot projects under way
• Energy export: potential for green energy exports to Europe

Agricultural development

• Agricultural revival plan: $10 billion of investment
• Food security: reducing import dependence
• Export promotion: dates, olive oil and organic products
• Water management: desalination projects

Industrial development

• Industrial zones: new zones planned
• Automotive industry: expansion of assembly plants
• Pharmaceutical production: local manufacturing incentives
• Digital economy: 5G deployment and e-commerce growth

Trade facilitation

• Customs modernisation: digital transformation
• Single window: implementation was planned for 2024 at the time of our analysis
• Trade finance reforms: easing foreign exchange constraints
• AfCFTA implementation: preparing for pan-African trade

Key contacts and resources

Government agencies

1. Algerian Customs (DGD): dgd.gov.dz, phone +213 21 71 12 12, 4 Rue Docteur Saâdane, Algiers
2. Ministry of Trade and Export Promotion: commerce.gov.dz
3. Bank of Algeria: bank-of-algeria.dz
4. National Centre for the Trade Register (CNRC): cnrc.org.dz

Business organisations

1. Algerian Business Leaders Forum (FCE): fce.dz
2. Algerian Chamber of Commerce and Industry (CACI): caci.dz
3. National Union of Algerian Employers (UNPA): unpa.org.dz

Statistical and market resources

1. National Office of Statistics (ONS): ons.dz
2. Customs statistics: statistiques.douanes.gov.dz
3. Algerian Export Directory: ppexport.dz
4. Investment Promotion Agency (ANDI): andi.dz

Important notes for traders

1. Use local agents: essential for navigating the bureaucracy
2. Document preparation: allow extra time for legalisation
3. Payment terms: secure payment in advance is recommended
4. Relationship building: personal connections matter

Economic impact and strategic position

Trade balance challenges

• Hydrocarbon dependence: 88% of exports
• Structural deficit: in non-hydrocarbon trade
• Import intensity: high dependence on food and manufactured goods
• Foreign exchange constraints: limited by oil and gas revenues

Strategic position

1. Energy exporter: the 3rd largest gas exporter to Europe
2. Geographic location: a gateway between Europe and Africa
3. Market size: 45 million people, the largest population in the Maghreb
4. Natural resources: significant mineral deposits (iron, phosphate and gold)

Competitiveness indicators

• Global competitiveness: 89th worldwide (WEF)
• Ease of doing business: 157th worldwide (World Bank)
• Logistics performance: 110th worldwide (World Bank LPI)
• Corruption perception: 104th worldwide (Transparency International)

Challenges and vulnerabilities

1. Foreign exchange controls: a major barrier to trade
2. Infrastructure deficiencies: ports and roads need upgrading
3. Skills gap: a shortage of technical and managerial skills

Note: this analysis is indicative of the state of Algerian trade as of early 2024. The landscape continues to evolve, particularly in response to geopolitical change, digital transformation and sustainability imperatives.