Algeria

Selling and buying in Algeria

Reaching the consumers | Distributing a product | Market access procedures | Organizing goods transport | Identifying a supplier

Reaching the consumers

Marketing opportunities

Consumer behavior: Price is the essential element in the Algerian consumer's decision to buy. The brand name becomes an element in choosing only if its price is reasonable. A not insignificant part of household budgets goes to housing and food expenses.

Consumer profile and purchasing power: In spite of the marked improvement in the Algerians' purchasing power, the country is still quite far from being what is called a consumer society. Algerians are careful in the management of their income. Badly curbed inflation, especially on essential goods because of the rise in their prices on the world market, encourages households to practise a certain restraint.

Consumers associations: List of 52 consumer associations , drawn up by the Algerian Ministry of Commerce.

Main advertising agencies: Publicis Group
Memac Ogilvy

Distributing a product

Evolution of the sector: The distribution market has, for a long time, been the domain of public companies. But, for the last few years, thanks to a wave of privatization, foreign - and especially French - companies have been taking an interest in the Algerian market.
Market shares: Algeria has a well developed distribution system which is shared between public and private companies. State firms sell mainly basic foodstuffs, pharmaceutical products and imported industrial material. The majority of distributors are private companies, especially in the equipment sector. As it were, in spite of the presence of public companies, the retail trade is exclusively controlled by private shopkeepers.
The Blanky group dominates the foodstuffs sector. It has taken over the stores which were previously managed by the State firm "les galeries algériennes". The Promy group is also a large one, and offers various types of products: textiles, electrical appliances, foodstuffs of which 75% are produced in Algeria. Alongside them, there is a multitude of small retail outlets. For example, Danone products (40% market share for fresh dairy products) are sold above all in small local shops.
The UGCAA (General Union of Algerian Shopkeepers and Craftsmen) encourages foreign distributors to set up in Algeria, as, in its opinion, this would reduce the weight of unofficial trade; this is thought to have represented 35% of commercial activity in 2004 spread over 2 400 unoffficial markets (irrespective of the sector of activity) and 500 000 shopkeepers. As a comparison, at the Register of Commerce, only 648 supermarkets and mini-markets are registered. However, the large foreign stores are discouraged by the cost of the investment and the complexity of Customs. This is especially the case of Carrefour which is still hesitating about opening Champion stores in the country.
For their part, the small local shops are not worried about foreign companies setting up; they consider that mass marketing meets the needs of more well-to-do customers than theirs. Given that the purchasing power of most Algerians remains low, they continue to prefer shopping at the local shopkeeper's.

Market access procedures

International Conventions

Party to the Kyoto protocol
Party to the Basel convention on the Control of Transboudary Movements of Hazardous Wastes and their disposal
Party to the Montreal protocol on Substances that deplete the Ozone Layer

Main International economic cooperation

Cooperation agreement with the European Union
Member of the African Union
Member of the Arab League
Member of the Arab Maghreb Union

Member of the Arab Free Trade Zone

Non tariff barriers

Over the last few years, Algeria has intensified the liberalization of its trade with foreign countries. However, the country levies high Customs duties on some goods to protect national production. All import and export transactions of goods and services must be domiciled with a bank.

Customs duties and taxes on imports

0 to 30%

Customs classification

The Algerian Customs tarrif is applied on the HS nomenclature.

Import procedures

To import or export goods, you must present a detailed declaration to the Customs office; it must be written and signed by the informant.
To consult import procedures, click here.

Importing samples

Samples can be exported with no controls. To see the Customs note on this subject, click here.

For further information

The Algerian Customs website
The Algerian Ministry of Commerce

Organizing goods transport

Main useful means: The main means of transport in Algeria, for import and export, is by sea. The main commercial ports are: Algiers (10 071 292 tonnes), Oran (3 879 581 tonnes), Annaba (5 175 759 tonnes) and Djendjen (1 379 359 tonnes) ; they total 75% of port traffic (apart from hydrocarbons). The port of Algiers is the leading commercial port in the country. The global volume of traffic registered by these ports during 2006 was 126.92 million tonnes, of which 99.96 were exports and 26.95 imports. For further information, see the UNECE presentation of Algerian ports.

Nevertheless, according to the Ministry of Transport, all the airport services management companies (EGSA) together registered, in 2004, an increase of 553 tonnes of the volume of freight handled, that is a rise of +2%. Air Algérie, the country's main airline, registered for its part an increase of +7.38% of the volume of freight handled in 2004 which thus came to 23 043 tonnes versus 21 459 tonnes in 2003.

The distances to be traveled by land are long. The motorway network is still limited. In the absence of reliable statistics on the activity of private sector road transport, it is very difficult to estimate the real volume of goods traveling by road in Algeria.

The National Rail Transport Company (SNTF) carried 8.293 million tonnes of goods in 2004 versus 8.162 million tonnes in 2003.
Ports: List of all the Algerian ports and information sheets about them
Airports: Airport services management company of Algiers Airport
Airport services management company of Oran Airport
Airport services management company of Constantine Airport
Sea transport organizations: Algerian Ministry of Transport
Air transport organizations: National Air Navigation Establishment
Road transport organizations: Algerian Ministry of Transport
Rail transport organizations: Algerian Ministry of Transport