The Algerian industrial sector (excluding oil) is made up of steel, chemicals and petrochemicals (fertilizers, plastics, pharmaceuticals), as well as a major food industry (wine, olive oil), textiles (tradition of manufacturing carpets) and mechanical (trucks, agricultural machinery).
The industrial public sector is the subject of a privatization program set up in the mid-1990's. The implementation of this program has really begun in the early 2000, in a context where the improvement in the political situation made the Algerian market more attractive to foreign investors. Thus, the Government has adopted a strategy for industrial development, which objectives are:
- the development of industrial activities beyond the national market;
- It must be part of a broader strategy which aims to make our country a competitive efficient, through the transformation of the economic system and a significant development of infrastructure and human resources;
- It must be based on the benefits of natural resources available in Algeria;
- Widespread innovation, through the mobilization of foreign direct investment due to its importance in the transfer and mastery of technology.
Also, among the measures that should be taken for the implementation of this new strategy, the privatization of more than 200 Public Companies (EPA) of existing 1400.
In this connection, it should be recalled that the private industrial sector consists mainly of Small and Medium Enterprises whose number is estimated at 200,000.
Broadly speaking, the industrial sector has several opportunities for foreign investors and especially in the sector of the automotive industry which is still virgin, except the assembling of some type of heavyweight vehicles. Besides, with a fleet of more than 3 million vehicles, Algeria presents opportunities in the manufacture of automotive equipment.