This is a best prospect industry sector for this country. Includes a market overview and trade data.
Algeria’s Information and Communications Technology (ICT) sector is dynamic and continuously evolving and serves as the pillar of the country’s digital transformation program. The ICT sector will also play a significant role in Algeria’s export diversification strategy away from oil and gas. From 2010 to 2019, the government invested more than $3.7 billion in its ICT infrastructure, and from 2015 to 2019, ICT equipment imports totaled $22 billion. Despite these outlays and significant progress in ICT infrastructure development over the last decade, Algeria lags behind other African countries, and gaps persist that present opportunities for U.S. exporters.
The Telecommunications and Information Technology (IT) segments dominate Algeria’s ICT sector. The country’s infrastructure primarily relies on 3G and 4G LTE for mobile telecommunications and ADSL and fiber for fixed telecommunications. Algeria connects to Europe via four fiber-optic submarine cables. Mobile adoption rates are high, with the number of mobile connections in February 2022 equivalent to 108.15 percent of the total population. Broadband adoption rates are significantly lower at nine percent. Since 2016, Algeria has deployed more than 120,000 kilometers of optical fiber throughout the country to help close the gap in broadband adoption rates. As a result, Algeria’s overall Internet penetration currently stands at 60 percent, with year-over-year increases of 16 percent.
Algeria’s state-owned company Algerie Telecom holds a monopoly over the country’s fixed-line and fiber optic networks and is responsible for developing Algeria’s telecommunication sector. Algerie Telecom falls under the Ministry of Post, Telecommunications, and Digital Technologies’ jurisdiction, in which multiple directorates focus on developing and regulating the ICT sector. Three telecom operators comprise the rest of Algeria’s telecommunications sector. In Q1 2022, the market leader, Mobilis, held 42.59 percent market share, followed by Optimum Telecom Algerie, with 30.76 percent, and Wataniya Telecom Algerie (a.k.a. Ooredoo) with 26.65 percent. In 2020, their combined revenue was $3.1 billion.
Further modernization of the ICT sector and the country’s digital transformation will require significant IT investments. The IT segment of Algeria’s ICT industry is well organized, with specialized distributors, integrators, and nationwide distribution channels that provide products, solutions, and services. Today, between 10 and 15 percent of all professional investments are IT investments. These investments, which present opportunities for U.S. exporters, include but are not limited to IT devices, servers, data centers, cloud computing, hardware, and software. In the IT Sector, the Algerian government is the largest buyer with its institutions and state-owned companies.
Competition for American companies in Algeria’s ICT sector mainly includes European, Chinese, and South Korean firms. Ericsson Networks, Nokia Networks, and Huawei all have a local presence and have been active in the country for decades. The competitive landscape is generally intense, and current procurement regulations favor the lowest-cost bidder over the best-value bidder, particularly for appliances and electronic components.
Leading Sub-Sectors/Best Prospects
- Telecommunications equipment (hardware and software)
- Cables (fiber optic and marine)
- IT equipment (hardware, software, integrated solutions, cloud computing, DDC)
- Electronic components, printed circuit boards
- Audio/video equipment
Algeria’s export diversification program includes creating an electronics manufacturing hub in North Africa by expanding local manufacturing of ICT equipment, such as mobile phones, home appliances, and audio equipment. Algeria-based manufacturers include state-owned companies like ENIE and ENIEM, private companies like Condor Electronics and Bomare Company, and foreign companies like Samsung (Korea), Huawei (China), and Wiko (France). The expansion of local manufacturing presents opportunities for U.S. exporters of electronic components, printed circuit boards, OEM, and audio equipment.
Major Trade Shows
- ICT Maghreb, Algiers
- Med-IT, Algiers
Algeria Telecommunications and Digital Technologies (MPTDT) Ministry and ICT principal actors:
Listings of Public Procurement Announcements:
- For more detailed information Algeria related procurement, please visit the BOMOP website, the Official Gazette for Government Procurement Tenders
- For further information and assistance in exploring opportunities in Algeria’s ICT sector, contact: Amina Lakehal, Commercial Specialist, U.S. Commercial Service Algeria, at Amina.Lakehal@trade.gov.