Industry & Retail

As part of the 2010-14 National Development Plan, Algeria intends to reduce its dependency on oil and gas by nurturing the development of local non-hydrocarbons industries. The government is now pushing ahead with large-scale infrastructure projects to facilitate the movement of goods and passengers and improve logistics, leading to heightened demand for construction materials. Industrial development zones have been established under the umbrella of the National Development Master Plan 2025, and in 2011 there were a total of 77 such zones. The sector is likely to see strong growth ahead, and there are signs that the government’s strategy is boosting the development of value-added and niche segments. The retail sector is benefitting from rising income levels supported by economic growth and strong hydrocarbons receipts. However, around 40% of Algerians still prefer to do their shopping in the more informal markets. Mall development is set to expand beyond the capital, however, land availability, particularly in urban areas, has proven to be an issue for developers. The growth in internet users bodes well for the development of online retailing. This chapter contains an interview with Chérif Rahmani, Minister of Industry, Small and Medium-Sized Enterprises (SMEs), and Investment Promotion.