Industry and Retail

Overreliance on the energy sector in the last three decades has siphoned investment away from manufacturing and left Algeria with high import demand in a number of critical areas, including food supply, machinery, electronics and other consumer goods. However, in the last 10 years, Algeria has focused on developing local manufacturing industries in order to reduce its heavy import spending, boost employment, increase value addition and export revenues, and diversify the economy. Industry’s redevelopment has been somewhat arbitrary in recent years, yet a handful of segments have grown quickly, attracting new sources of foreign direct investment.

In the retail sector, consumption patterns in Algeria are beginning to shift towards modern retail, supported by rising income levels and greater exposure to formal shopping outlets and international brands. Retail sales increased 30% from $28.7bn in 2007 to $37.5bn in 2011, while per-capita spending rose by 22% over the same period, to reach $1023 in 2011. Authorities hope that the rise of modern retail stores, particularly in the grocery segment, will have a positive knock-on effect for locally produced goods.

This chapter contains interviews with Hamoud Tazerouti, CEO, Entreprise Nationale des Véhicules Industriels (SNVI); Amor Habes, Owner and General Manager, Faderco; and Javier Goñi, CEO, Fertiberia Group