The Algerian agri-food sector represents a major opportunity for foreign investors, with growth supported by incentive policies and a dynamic domestic market. Contributing 14.5% to non-oil GDP and employing 2.6 million people, it aims for food self-sufficiency and exports to Africa and Europe. In 2026, a $6 billion USD budget accelerates modernization, making the sector even more attractive.
State of Play and Sector Potential
Agriculture accounts for 15% of GDP, with production valued at $37 billion USD in 2024 and agricultural GDP rising to 1.418 billion DZD in Q2 2025. Agri-food industries grow 15% annually, via 23,000 private companies generating 40% of industrial GDP. Algeria achieves near self-sufficiency in fruits and vegetables, with surpluses to transform for export.
Strategic Opportunities for Investors
- Transformation and agro-industry : Focus on oilseeds, dairy, cereals; $2.4B confectionery/snacks market.
- Flagship projects : Partnerships like Baladna (Qatar, 117,000 ha powdered milk) and Bonifiche Ferraresi (Italy, €420M cereals).
- Fertile lands in the South : Ideal for livestock and strategic crops, with export ambitions.
Legal Framework and Tax Benefits
Law 22-18 exempts non-strategic projects from the 49/51 rule, with customs waivers and VAT on equipment. Benefits: 60% IS abatement for livestock, 10-year IR exemption for agriculture. International guarantees against political risks via bilateral agreements.
| Tax Benefit | Target Sector | Duration |
|---|---|---|
| Customs/VAT Exemption | Imported Equipment | Project Duration |
| 60% IS Abatement | Livestock/Agriculture | 10 Years |
| IR Exemption | Agricultural Activities | 10 Years |
Practical Steps to Launch Your Project
To maximize success in Algeria, several options exist, including specialized consultants. Partnering with a dedicated support firm greatly simplifies administrative, technical, and relational processes.
- Implementation : Associate with local players for compliance; target the South for land opportunities.
- Initial Assessment : Contact AAPI or an expert firm to analyze your project and identify applicable incentives.
- Consulting Firm Support : Our firm offers neutral, comprehensive services – feasibility studies, local partnerships, land acquisition, investment dossier preparation. This avoids common pitfalls for non-residents and ensures end-to-end quality follow-up.
- Submission and Approval : Submit via AAPI with facilitated in-kind contributions; prioritize irrigation and sustainable transformation.
Many investors succeed independently via AAPI, but for premium support tailored to expatriates – speed, network, local expertise – HENNI Consulting optimizes your project without obligation. HENNI Consulting's support in Algeria. optimises your project with no obligation.
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