Algeria
Algeria ramps up investments in the hydrocarbon sector. With a few months left before early presidential elections – which incumbent president Abdelmadjid Tebboune scheduled for next September –, Algerian parastatal Sonatrach signed an agreement with Chevron for joint exploration of the Ahnet and Berkine basins, hailed as “historical” by Energy minister Mohamed Arkab. The deal marks Chevron’s first true foray into the Algerian market and follows a similar deal struck by Sonatrach and ExxonMobil over Ahnet and the Gourara basins. In May, Baker Hughes had already obtained a license for Hassi R’Mel, which holds most of Algeria’s discovered hydrocarbon reserves.
US interest in the Algerian upstream – which would help secure Europe’s growing demand for North African gas – is balanced by China’s growing presence in the sector. At Shenzen, Sonatrach and Huawei signed a memorandum of understanding on digitalization, telecommunications, and cloud computing. Meanwhile, Sonatrach and Sinopec signed a new memorandum to enhance cooperation in the hydrocarbon sector: the Chinese group operates in Algeria since 2022, when it obtained a license for the Zarzaitine site. The increase in foreign activity mirrors Algiers commitment to strengthen its oil and gas production, which aims to reach a target of 200 bcm within the next five years according to Arkab.
Algeria keeps up cooperation with Italy. Following Tebboune’s return from the Bari G7 summit, Algiers and Rome announced a 420-million-euro agricultural partnership, which will see Bonifiche Ferraresi (BF)’s Algerian subsidiary develop 36.000 ha of arable land in the Timimoun wilaya. The project – which is the largest BF has ever undertaken in Algeria – aims to boost the national wheat supply as the country’s agricultural sector, accounting for roughly 12,4% of GDP, struggles with near-permanent drought and growing import dependency. On this backdrop, the Algerian government has sought to facilitate foreign investment in the sector by granting long-term land concessions to foreign enterprises.
Finally, Algeria deepens ties with Turkiye. Following a visit to Ankara by Algerian Foreign minister Ahmed Attaf, Turkiye’s deputy president Cevdet Yilmaz met Algerian Prime minister Nadir Larbaoui in Algiers. Turkey and Algeria have been looking to overhaul economic cooperation: ranking among Turkiye’s main LNG suppliers, the North African country has repeatedly stated its intention to double bilateral trade from 5 to 10 billion dollars per year.
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On March 14, Med-Or Foundation signed a Letter of Intent with the People’s Democratic Republic of Algeria, represented by its Ambassador to Italy, Abdelkrim Touahria. The agreement symbolizes a mutual commitment to explore and foster cooperation in various key areas.
It is no longer a secret that Algeria and Europe are extremely close – now more than ever, given the current geopolitical context.
The number of African countries thinking of developing a nuclear programme is growing, while collaboration projects with Russia and China are increasing. By Emanuele Rossi
| Head of state | Abdelmadjid Tebboune |
| Head of Government | Nadir Larbaoui |
| Institutional Form | Presidential Republic |
| Capital | Algeri |
| Legislative Power | Bicameral Parliament, Nation Council (High House, 114 Members) and People’s National Assembly (Low House, 462 Members) |
| Judicial Power | Supreme Court (150 judges divided in 8 Houses) |
| Ambassador to Italy | Abdelkrim Touahria |
| Total Area kmq | 2.381.741 km² |
| Land | 2.381.741 km² |
| Weather | From arid to semi-arid; dry and hot summers along the coast; drier with cold winters and hot summers on the highland |
| Natural resources | oil, natural gas, iron ore, phosphates, uranium, lead, zinc |
| Economic summary | The economy remains dominated by the state, an heritage of the country’s post-independence socialist development model |
| GDP | € 196,8 billion (2023) |
| Pro-capite GDP (Purchasing power parity) | $11.040 (Dic. 2021) |
| Exports | € 53.3 billion (2023) |
| Export partner | Italy 17.2%, France 14.8%, Spain 13.8%, China 4.74%, South Korea 4.27% (2020) Imports: $31.3 billion (2020) |
| Imports | € 44.4 billion (2023) |
| Import partner | China 17.9%, France 15%, Spain 6.89%, Italy 6.61%, Germany 5.69% (2020) |
| Trade With Italy | € 16.895 billion (2023) |
| Population | 44.178.884 |
| Population Growth | +1,34% |
| Ethnicities | Arab-Berber 99%, European less than 1% |
| Languages | Arabic, French, Berber or Tamazight. The dialects include Kabyle Berber (Taqbaylit), Shawiya Berber (Tacawit), Mzab Berber, Tuareg Berber (Tamahaq) |
| Religions | Islam (official and predominantly Sunni) 99%, other religions (Christianity and Jews) less than 1% |
| Urbanization | 74,8% |
| Literacy | 81.4% |
The People's Democratic Republic of Algeria gained independence in 1962, after a long war against France. Located in the Maghreb region, Algeria is the largest country in Africa. Overlooking the Mediterranean Sea, it borders with Tunisia and Libya to the east, Niger, Mali and Mauritania to the south, and Morocco and Western Sahara to the west. Its population is estimated to be 44 million and the official languages are Arabic and Tamaziɣt.
Algeria plays a leading role in the stabilization of the Sahel region. In recent years, it has undertaken cross-border political, military and intelligence cooperation initiatives with neighbouring countries.
The cornerstones of cooperation between Italy and Algeria have been energy, the creation of human capital, infrastructures and security. Until 2019, Italy used to be Algeria's largest trading partner globally. Since the beginning of 2022, Algeria is Italy's first gas supplier. In 2020, due to the Covid-19 pandemic, the value of Italy-Algeria trade fell to €5.83 billion, of which €3.14 billion were Italian imports (-27.6 percent compared with the previous year) and €1.94 billion were Italian exports (-33.5 percent compared with the previous year). Natural gas represents almost the totality of Italy’s imports from the country, while Italy mainly exports machinery, refined petroleum products, chemicals and iron and steel products. In 2021 the trade between the two countries reached $ 9 billion.
