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April 20, 2025 | 6 months ago
2.5 billion in investments: 7 agreements signed between Algeria and China this week
During the latest Algerian-Chinese economic forum, seven partnership agreements were signed between Algeria and China, marking the start of large-scale industrial and agricultural projects.
These agreements, worth over $2.5 billion, illustrate the depth of cooperation between the two giants.
These collaborations promise to radically transform the country's economic landscape, from agriculture to vehicle manufacturing and rail infrastructure. But beyond the numbers, it's a real bet on the future that the two nations have just sealed.
Algeria - China: an agricultural partnership worth $2 billion
The strategic agriculture takes centre stage. The Madar Holding group (the industrial arm of the Algerian state) has signed an agreement with the Chinese company CRCCI to launch an ambitious project for strategic crops.
Worth close to two billion dollars, this project aims to boost national production in sectors crucial to the country's food security. It is part of a drive to diversify the economy and reduce hydrocarbon dependence. According to Madar CEO Chérif Dine Amara, this agreement represents a key step towards meeting the country's agricultural challenges and ensuring greater self-sufficiency.
But that's not all! A second major partnership between the two giants concerns the manufacture of shipping containers. As well as a third project to set up an industrial research company in collaboration with the Chinese civil engineering firm CCECC. These initiatives round out Madar's investment offering, making it a key player in this dynamic development.
China in the automotive sector: a revolution is underway
The automotive industry is undoubtedly one of the most dynamic sectors in this cooperation program. China has launched vehicle manufacturing on Algerian soil. The "Iris" company, in partnership with the Chinese manufacturer Chery, has announced the establishment of a plant in Algiers to produce cars in 2027.
The project, which is based on technology transfer, will initially produce 50,000 vehicles a year. Chery's manufacturing license was officially granted by the Algerian authorities last October, a crucial step in the context of the new automotive production legislation due to come into force in 2024.
Meanwhile, Jetour, another Chinese brand, has also signed an agreement with FONDAL, an Algerian company, to produce up to 270,000 vehicles over the next five years. With an investment of $105 million, this project should also create numerous local jobs and strengthen the Algerian automotive industry.
A turning point in the rail sector: partnership for ambitious modernisation in Algeria
However, the agreements are not limited to the agricultural and automotive sectors. The rail industry is also a strategic partnership, between the Entreprise Nationale de Transport Ferroviaire (SNTF) and GENERTEC CNTIC, a subsidiary of China's giant CRRC.
This project concerns the production of rolling stock and railway equipment in China. It should help modernise a key sector of Algeria's transport infrastructure. The project is part of a drive to modernise Algeria's rail network. It aims to strengthen the country's logistics capabilities.
A win-win exchange: China at the heart of Algeria's economic strategy
Beyond specific projects, these agreements mark a turning point in economic relations between Algeria and China. According to Omar Rekach, Managing Director of the Algerian Investment Promotion Agency (AAPI), China is now a leading strategic partner, with 42 investment projects registered with the agency, worth over 4.5 billion dollars. Cooperation is not limited to these direct investments. It also extends to initiatives aimed at broadening the range of collaborative sectors.
According to Algeria's Minister of Industry, Saïfi Gharib, this surge in Algeria-China trade. 12.5 billion by 2024 reflects a solid partnership. However, he stresses the need to facilitate access to the Chinese market for Algerian products.
Algeria aims to increase its gross domestic product to $400 billion by 2027. Partnerships with China will offer the country a genuine opportunity for economic diversification, beyond hydrocarbons.
April 20, 2025 | 
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