Transport

In its efforts to overhaul transport infrastructure, Algeria has directed significant investment towards its road network. In addition to nearing completion on the East-West Highway, construction is also starting on another major project – the Hauts Plateaux Highway, running further south. These two routes, which will cost a combined total of around €16.2bn, will cross...

Given the country’s large quantity of imported goods and the importance of hydrocarbons exports, Algeria’s economic performance is largely connected to how well its ports function – even more so as up to 95% of Algeria’s international trade passes through its port network, according to the European Commission.

As part of the country’s ambitious infrastructure programme, the government has enacted new measures aimed at encouraging greater participation of local firms. Amendments to the 2010 public procurement law have also introduced new rules for foreign companies and outlined special procurement procedures for state-owned enterprises (SOEs).

As a result of high oil revenues over the past decade, Algeria’s transport infrastructure has been significantly overhauled, benefitting from generous public sector spending. Tens of billions of euros have been channelled into roads, rails, ports and airports over the past five years alone, with an equivalent amount due to be disbursed through 2019.

Supply chain quality, reliability and timeliness are key for any emerging market. However, with all of the attention on Africa as an investment destination in recent years, the continent’s infrastructural deficiencies, fragmented transport networks and institutional weaknesses have highlighted the importance of improving logistics and freight transport. Although freight...