Algeria and China Sign $2.5 Billion in Partnership Agreements to Drive Economic Transformation

During the latest Algerian-Chinese economic forum, seven partnership agreements, valued at over $2.5 billion, were signed, marking the launch of major industrial and agricultural projects aimed at transforming Algeria’s economy.

The agreements between Algeria and China span various sectors, including agriculture, automotive manufacturing, and rail infrastructure. These collaborations emphasize a significant economic shift, with Algeria seeking to reduce its dependence on hydrocarbons.

A major agricultural project, valued at $2 billion, was signed by the Madar Holding group and Chinese company CRCCI to boost food security and national production. Another key partnership involves the production of maritime containers and setting up an industrial research company with CCECC, a Chinese civil engineering firm.

In the automotive sector, Chinese company Chery is launching a vehicle manufacturing plant in Algiers, set to produce 50,000 vehicles annually starting in 2027. Jetour, another Chinese automotive brand, is also partnering with FONDAL to produce up to 270,000 vehicles over five years.

Additionally, the rail sector is seeing a strategic partnership between Algeria’s SNTF and China’s CRRC subsidiary, GENERTEC CNTIC. This collaboration aims to modernize Algeria’s rail network and enhance logistics capabilities.

These agreements mark a pivotal moment in Algeria’s economic strategy, as China becomes a key strategic partner, with over $4.5 billion in investments registered in Algeria.

The signing of these agreements represents a significant step in diversifying Algeria’s economy, reducing reliance on hydrocarbons, and strengthening ties with China. As Algeria aims for a GDP of $400 billion by 2027, these partnerships provide vital momentum for long-term economic growth and stability.