Algeria emerges as an underestimated economic powerhouse in North Africa, according to USA Today
via Algérie3605 min read
Algeria is undergoing a significant economic transformation, positioning itself as an emerging investment destination in North Africa, as highlighted in a special economic report by USA Today published on July 3, 2026. The report, titled "Algeria: North Africa's Next Investment Frontier," notes that the country's true economic potential remains largely underestimated despite its size. This dynamism is driven by deep structural reforms and strategic mega-projects spanning energy, agriculture, industry, infrastructure, and tourism. With an improved business climate and major projects, Algeria, the largest country in Africa, is becoming a key investment hub, strategically located between Africa, Europe, and the Middle East. As the second-largest economy in the region, Algeria benefits from a predominantly young population and an expanding infrastructure network. The report also indicates a shift in Algerian-American relations from security to economic and investment cooperation, with bilateral trade reaching nearly $3.5 billion in 2025. An economic diplomatic offensive towards the United States in late 2025 led to a delegation of 24 Algerian public and private companies participating in the SelectUSA investment summit in Maryland in May 2026. The energy sector remains a cornerstone of this growth, with Algeria holding the world's tenth-largest natural gas reserves and third-largest shale gas reserves. Sonatrach, Africa's largest company by revenue, recorded $77 billion and plans
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Must ReadGermany's VNG, a major gas distributor, faced an existential crisis in 2022 due to the abrupt suspension of Russian gas deliveries. This led to a strategic shift, positioning Algeria's Sonatrach as a crucial partner. Since late 2024, Algerian gas has officially supplied the German market via the Transmed pipeline, and both companies are now collaborating on green hydrogen projects. VNG's CEO, Ulf Heitmüller, stated that the company diversified its gas sources, with Norway and Algeria becoming primary suppliers, alongside LNG from the United States. Algeria's position among VNG's main pipeline suppliers is now established, and the country also became the leading gas supplier to Spain and Italy in 2025, solidifying its role as a European gas pillar. Beyond hydrocarbons, Sonatrach and VNG are jointly developing industrial green hydrogen production projects in Algeria for export to Europe. The SoutH2 Corridor project aims to transport up to 1.2 million tons of renewable hydrogen from Algeria to Italy, Austria, and Germany, partially reusing existing gas pipelines to reduce infrastructure costs. This euro-Mediterranean green hydrogen project involves coordination meetings between Algeria, Tunisia, Italy, Austria, and Germany. VNG plans to invest five billion euros by 2035, primarily in hydrogen and biogas infrastructure, with a significant portion remaining in Eastern Germany. This strategic shift aligns with increasing involvement from leading German industrial groups like Siemen
Must ReadAlgeria secured the top position at the 2026 Pan-African Mathematics Olympiads PAMO held in Côte d'Ivoire from June 26 to July 4. The Algerian delegation not only led the team rankings but also saw Alaa Yahia crowned "African Queen of Mathematics." The country's educational system was celebrated as young mathematicians brought home an impressive total of nine medals, including several top distinctions. Kian Abolghasemi and Abderrahmane Si Ahmed achieved perfect scores, earning gold medals, as did Mohamed Ikbal Tebib. Alaa Yahia's exceptional performance included a gold in the general tournament and the top spot in the women's category. Fairouz Benyounes won silver in the general competition and gold among girls, while Layane Harnane secured two silver medals. The Minister of National Education, Mohammed Seghir Sadaoui, congratulated the winners, calling their achievement a "historic exploit" and highlighting it as proof of the quality of Algerian public education and its ability to produce international scientific talent.
Kazakhstan plans to export live sheep to Algeria starting in 2027, as announced by Kazakh Ambassador Anuarbek Akhmetov. This initiative marks a diversification of the relationship between Algiers and Astana, which has historically been strong in grain trade. In 2025, Kazakhstan supplied nearly 350,000 tons of wheat to Algeria, valued at $93 million. Building on this success, both countries aim to expand cooperation into livestock, agricultural technologies, and tourism. The sheep exports are intended to help meet Algeria's high demand for ovine meat, which currently faces high prices. Kazakhstan possesses a large national flock of over 21 million sheep. The project also includes industrial investments in the halal sector, focusing on developing and certifying products that meet religious standards. Beyond livestock trade, the partnership involves technology transfer to modernize Algerian agriculture. Kazakhstan plans to share expertise in improving crop varieties, particularly in developing climate-resilient seeds, and introduce new agricultural technologies and industrial processing methods. These efforts aim to enhance Algeria's food sovereignty, as the country currently covers about 80% of its food needs but seeks self-sufficiency in strategic sectors. Ambassador Akhmetov also highlighted potential cooperation in transportation, logistics, digital transition, and tourism, emphasizing a broader partnership built on mutual trust and respect.