Describes what a company needs to know to take advantage of e-commerce in the local market and covers prominent B2B websites.
The Algerian e-commerce market is growing, but it is limited in scope and far from reaching its potential. More than 90 percent of online transactions are to pay telephone and internet bills. According to the trade group GIE Monétique, there were only 105 online retailers in Algeria by the end of June 2021. They processed 3.5 million payments worth $32.4 million in the first half of 2021. According to the Algerian National Association of Traders and Craftsmen, the market potential is estimated to be $5 billion. The government is seeking to increase the rate of Internet penetration and bandwidth to boost e-commerce. While the first Algerian online markets appeared in 2009, e-commerce began to take off in 2014 with the arrival of the Pan-African site Jumia, which remains the country’s most popular online sales site. OuedKniss, Batolis, and IdealForme are the leading local online sales sites besides Jumia. Note that the payments are made in cash upon delivery of items.
In February 2018, the Algeria government adopted a law that defines its first e-commerce regulations, stipulating that online markets must host their website in Algeria and be registered at the Algerian Commercial Registry. The law prohibits online purchasing of tobacco and alcoholic beverages and medicines, online gambling, and gaming services. Under the current law, Algerian citizens cannot buy items online from abroad. Businesses, however, may buy items foreign items online for internal use. American businesspeople interested in online sales should note that personal credit cards are very limited in Algeria. Algerians have only recently started to use international credit cards (e.g., Mastercard and Visa) issued by local banks and accepted for use abroad, and there are very few merchants who accept them in Algeria.