Algeria Expands Economic Outreach to Libya and Mauritania Amid Push to Diversify Exports

This direction is part of a broader government initiative to enhance foreign trade and revive economic ties with neighboring states amid regional instability and political tension, making cooperation with Libya and Mauritania vital for local economic resilience and regional balance.

Strengthening Ties with Libya

Last weekend, Minister of Foreign Trade and Export Promotion Kamel Rezig chaired a coordination meeting with Algerian exporters to Libya, alongside the Governor of the Bank of Algeria, the General Commissioner of the Association of Banks and Financial Institutions, ministry officials, and representatives of economic organizations. The meeting focused on the field-level challenges faced by exporters and explored strategies to streamline Algerian exports into Libya, a market described as “promising.”

Rezig emphasized the ministry’s commitment to supporting exporters, especially in logistics, regulatory improvements, and financial security, highlighting Libya as a natural extension of Algeria’s export strategy. He also called for long-term economic partnerships that go beyond transactional trade.

Algerian President Abdelmadjid Tebboune

Trade between Algeria and Libya has gradually grown—from $31 million in 2018 to $59 million in 2020, and $65 million in 2021, of which $59 million were Algerian exports. However, these figures remain modest compared to the countries’ shared potential. Hence, both governments have launched an ambitious plan to raise trade volume to $3 billion annually, facilitated by:

Customs authorities have also held meetings to activate joint agreements, combat smuggling, and ensure the smooth movement of goods across the 900-kilometer shared border.

Growing Economic Presence in Mauritania

On the Mauritanian front, the Algerian Products Expo in Nouakchott (May 22–28, 2025) became a platform for expanding Algeria’s economic footprint.

The expo resulted in over 40 MoUs between Algerian and Mauritanian companies across various sectors:

• Food and beverages

• Cleaning products

• Plastics

• Medical supplies

• Construction

• Textiles

• Electrical goods

• IT solutions

In total, 43 public and private Algerian companies participated, along with trade and export organizations. The deals reflected a broad sectoral range, showcasing Algeria’s intent to move beyond primary goods to industrial products and high-value services. This also signaled a mutual interest in long-term economic integration.

Following the opening of the “Mustafa Ben Boulaid” land border crossing in 2018, trade between Algeria and Mauritania grew significantly—reaching $414 million in 2023, up 82% from $227 million in 2022.

The upcoming Tindouf-Zouérat strategic road, over 800 kilometers long, is expected to transform cargo flow into sub-Saharan Africa. A border free trade zone, agreed upon by both nations, will boost investment and market access, giving Algerian products structured entry into Mauritania and beyond.

Structural Reforms and Export Regulation

These moves come as Algeria prepares to launch two new agencies to manage export and import operations, under direct supervision from the Presidency. An upcoming ministerial meeting will finalize legal frameworks for the new bodies, aiming to align with international trade standards and stabilize trade mechanisms.

According to the Council of Ministers, President Abdelmadjid Tebboune has ordered the creation of:

• Strict qualification criteria for exporters and importers

• New mechanisms like bulk purchasing cooperatives

• Stronger inter-agency coordination between the Ministry of Foreign Trade, Central Bank, and Customs

These reforms align with positive World Bank data on Algeria’s economic performance—especially in non-oil sectors. According to World Bank economist Cyril Desponts, non-hydrocarbon GDP grew by 4.8% in 2024, driven by private consumption, investment, and a drop in inflation from 9.3% (2023) to 4% (2024).

The agriculture sector was a key contributor to price stability despite weather challenges. Meanwhile, hydrocarbon exports are expected to recover further in 2025 as Algeria benefits from increased OPEC+ production quotas.

Still, the World Bank stressed the urgency of structural transformation, particularly in manufacturing and services, to ensure resilient, diversified growth. The shift toward high value-added sectors and private investment reforms will be critical for building an economy capable of withstanding external shocks.

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