Industry & Mining
From The Report: Algeria 2017
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While the economic contribution of industry is still relatively small, many of the key building blocks for a successful industrial sector are already established, with abundant energy reserves, mineral raw materials and infrastructure. Some segments of agri-business are well developed, and activity in heavy industrial such as steel and cement production is rapidly expanding. As the largest country in Africa, and home to a variety of topographies and geologies, Algeria has substantial mineral reserves. However, these are currently underutilised; the sector has attracted relatively little investment in recent decades, and as much as 60% of the territory has yet to be adequately explored, according to local estimates. While Algeria’s size and the need for infrastructure to exploit large mineral reserves in remote areas present a challenge for development, the government is keen to promote mining as part of broader diversification efforts, and the new mining law should help to attract investment in this regard.

This chapter contains interviews with Philippe Monestes, General Manager, Nestlé Algeria; and Amine Melouk, General Manager, SAREL.

Articles from this Chapter

Overview

Incentivising growth: The government is working to diversify the economy, attract investment and discourage imports
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Many of the key building blocks for a successful industrial sector, including abundant energy reserves and mineral raw materials, well-developed infrastructure, and proximity to major export markets are present in Algeria. Despite this, the economic contribution of industry is relatively small. However, some segments such as agri-business are comparatively well developed, and activity in heavy industrial subsectors, including steel and cement production, is growing quickly. Furthermore,…

Interview

Great potential: Philippe Monestes, General Manager, Nestlé Algeria, on raising domestic production and export capacities in agri-business
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Interview:Philippe Monestes How has the agri-business market developed, and what improvements still need to be made? PHILIPPE MONESTES: Currently, the Algerian market is the most important in Maghreb and is experiencing the highest growth in the region. However, there is still potential to increase quality and develop more attractive offerings. Algeria still depends significantly on food imports and some key segments remain uncovered by local production. Quantity and quality capacities…

Analysis

Concrete assets: Construction materials to become a primary non-oil export
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One of the largest manufacturing segments in Algeria is construction materials, which accounted for 2.2% of total country GDP and 10.4% of industrial GDP in 2016, with value added of AD101.3bn (€840.2m), according to the National Statistics Office. In 2016 segment GDP grew by 6.2% in real terms – up from 5.1% the previous year – making it the second-fastest-growing industrial segment, behind only wood, paper and cork. Growth slowed in 2017, to 3.7% in the first quarter and 2.8% in the…

Analysis

Automotive to grow: Domestic carmaking is continuing on a promising path
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Before 2014 the only domestic vehicle manufacturer was the state-owned Entreprise Nationale des Vehicules Industriels (SNVI), which was established during colonial times and produces commercial and heavy vehicles. However, in 2014 Renault Algérie Production, a joint venture between SNVI, Fond National d’Investissement and French carmaker Renault, launched an assembly plant near Oran. Initial production capacity was 25,000 vehicles per year, with a capacity to expand production to 75,000.…

Interview

Globally driven: Amine Melouk, General Manager, SAREL, on investing in human capital and reforming Customs to support the automotive industry
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Interview:Amine Melouk How can local companies participate in the emerging Algerian automotive industry? AMINE MELOUK: Our case was made possible thanks to a market surveying mission led by Renault, whose aim was to develop a local subcontracting factory to substitute the importation of spare parts. SAREL used to be a producer of telecommunications devices, so it required significant upgrades from our side to meet industry standards. We had to go through several international certification…

Overview

Turn of phosphate: Plans put forward to increase mineral and metal production through changes in policies and joint-venture agreements
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As the largest country in Africa, and home to a variety of topographies and geologies, Algeria is rich in substantial mineral reserves. These are currently underutilised, as the sector has attracted little investment in recent decades. According to figures cited in local press, around 60% of the country has not been properly explored. Algeria’s size and the need for infrastructure development to exploit large mineral reserves in remote areas represent another challenge for the sector. However,…