For decades, Algeria’s economy has largely depended on oil and gas exports. But today, the largest country in Africa is looking beyond energy exports. One of the ways it is diversifying the economy is through port expansion as the country races towards increased transportation of containerised goods to Europe, Asia, and Africa.
“A decade ago, 90% of these ships carried oil and gas,” remarks a port worker, gesturing toward vessels being loaded with fertilisers, steel coils, and crates of dates. “Now, you can see the change in what we export—it’s more than just oil products. It’s our future,” a feature published by the World Bank in 2025 quoted the worker as saying.
The recent expansion at the Port of Algiers, one of the country’s most important commercial gateways, is a major milestone.
According to a report in May 2026 by Ports Europe, the Port of Algiers, through infrastructure renovation and digitalisation of operations, has increased its annual handling capacity to over 2,000 ships. The port reached the one million Twenty-foot Equivalent Units mark in 2025, up from 700,000 TEUs in 2024, while also opening new trade routes to other parts of the world.
A previous report by TrendsNAfrica noted that the port also saw an eight per cent increase in the volume of goods handled in the second quarter of 2024, reaching two million tonnes compared with 1.86 million tonnes for the same period in 2023. These figures, specific to the Port of Algiers alone, point to significant operational efficiency in the North African country’s drive towards a diversified economy.
The Strategy
Algeria’s geographic position naturally offers it a logistics advantage because it is situated on the southern shores of the Mediterranean. As such, the country is positioned as a key maritime corridor linking more than one continent.
The country has a network of 10 commercial ports, including six main ones—Ghazaouet, Oran, Mostaganem, Algiers, Djedjen, and Annaba—and they all play a central role in the flow of goods into and out of the country.
For years, businesses operating through these ports have been impacted by delays, paperwork bottlenecks, and long cargo processing times, according to Oxford Business Group.
But the narrative is changing. With recent investments in port modernisation, digital infrastructure, dredging projects, and logistics networks, authorities now seek to position the country as a major maritime gateway for transnational shipments from Africa to the rest of the world.
Beyond the port expansion at Algiers, Oran Port witnessed the one-off delivery of six high-end cargo-handling equipment units in 2025. According to a publication by the Oran Port Company last year, the operation was part of ongoing efforts to develop the port’s infrastructure in line with the latest international standards. It added that the development reflected the Algerian authorities’ commitment to improving performance and facilitating the movement of goods and cargo through national ports.
“With the acquisition of this new equipment, in addition to three modern quay cranes that were previously installed at the port, the Port of Oran has become the first Algerian port to be equipped with container terminals that meet international standards, reinforcing its position as a hub for maritime trade at the national and regional levels,” it said.
With 95 per cent of the country’s trade conducted by sea, the North African nation sees digitalisation as a key lever for enhancing port efficiency and streamlining logistics operations. For Algeria, this translates into higher cargo throughput, improved supply chain performance, and greater momentum towards economic diversification.
Policy and foreign partnerships
Deliberate policies by the government appear to be the driving force shaping the future of the country’s economy.
In 2025, Algerian President Abdelmadjid Tebboune directed the Minister of Transport to strengthen oversight of container operations and exercise greater caution in cargo management. According to TrendsNAfrica, he stressed the need to meet unloading deadlines by expanding capacity and improving control mechanisms, measures aimed at easing congestion and freeing up space at dry ports.
The President also sought a coordination mechanism to manage the pressure resulting from waiting times in ports, reducing them to a maximum of 24 hours.
A year later, Chinese state-owned contractor China Harbour Engineering Company was awarded a contract to develop Algeria’s ports, the latest in a series of deals between China and the North African country. Arabian Gulf Business Insight reported that CHEC signed the contract in the capital, Algiers, with the Algerian state-owned maritime works group GTM.
According to the Ministry of Public Works and Infrastructure, the joint venture was to develop ports across the country and would focus on the dredging of the Port of Annaba and the Port of El Hamdania.
Ports Europe reported in June that land reclamation work in the areas would start on June 15, 2026, quoting the country’s Minister of Public Works and Basic Infrastructure, Abdelkader Djellaoui. According to Italian news agency Nova, Algeria also plans to establish a new Hamdania Port near the city of Cherchell, approximately 70 km west of Algiers, with an investment exceeding $5 billion.
The port will feature 25 berths, with a handling capacity of 25.7 million tonnes of goods and a high container-handling capacity, positioning it as one of the most significant commercial ports in North Africa.
The initiatives reflect strategic plans by the country to diversify the economy by leveraging port expansion.
Port infrastructure attracting investors
Port infrastructure in Algeria is attracting more investment into the economy from various countries, particularly Italy. Algiers-based organisation Fadaa believes the ports present promising opportunities in the transportation and trade sectors, making them a key attraction for Italian investors.
According to its analysis, the country’s major ports attract significant interest from Italian investors due to the vast opportunities they offer in maritime transport, international trade, and logistics.
It added that Algeria, with its strategic location on the Mediterranean, is enhancing its port infrastructure to meet domestic and international trade demands.
“Italians see these ports as a chance to strengthen their commercial ties with Algeria and are keen on investing in enhancing their capacity and developing their infrastructure. Thanks to their strategic location, these ports facilitate trade with Mediterranean countries, fostering cooperation between the two nations in maritime transport and supporting long-term economic partnerships,” the organisation noted.
According to the analysts, Algeria’s handling capacity is a fundamental factor in boosting foreign trade, as Algerian ports offer extensive capabilities in shipping, export, and import operations.
World Bank highlights gains and support
Algeria’s efforts to diversify its economy might be a long-term goal, but gains are already being recorded. According to the World Bank feature, which also acknowledged the North African country’s diversification drive, non-hydrocarbon exports have tripled since 2017, reaching $5.1 billion in 2023 and representing two per cent of GDP.
Key exports have included fertilisers, steel products, and cement, signalling early successes in broadening Algeria’s economic base. While the portfolio remains limited, the bank said it underscores the importance of further expansion and diversification efforts.
For the bank, central to the transformation is the Algerian Port Community System (APCS), launched in July 2021 and developed with World Bank expertise. It noted that the digital platform connects all port stakeholders and reduces cargo clearance times by linking customs, shipping lines, and exporters on a single interface.
“The APCS marks a turning point for Algeria’s trade sector,” emphasises Meriem Slimane, a Senior Economist at the World Bank. “It demonstrates how targeted reforms can drive transformative economic impact.”
The World Bank also identified Algeria’s 2022 Investment Law as a key element of the effort and said it is designed to attract domestic and foreign investors.
It also stressed that Algeria’s agricultural sector has made strides, particularly in exporting fresh food products.
The limitations
Geography alone does not guarantee success for Algeria. Despite advances, Algeria grapples with challenges in productivity and bureaucracy. According to an analysis published by Algeria-based organisation Fadaa, Italian investors, for instance, may encounter complex bureaucratic procedures and delays in obtaining permits, which can slow the implementation of projects.
Foreign investors may also have to navigate local labour and tax regulations, requiring a thorough understanding of the local legal framework.
“Although the business environment is improving, political stability remains a concern for some investors,” it noted.
The analysts also identified language barriers and cultural differences, saying these could affect coordination and communication between Italian firms and their local counterparts, potentially complicating operations.
Foreign investors may also face competition from players in the domestic market.
“Limited local financing and difficulties in securing capital may pose obstacles for large-scale projects,” they added.
But amid the concerns, they stressed that “these ports present promising opportunities in the transportation and trade sectors, making them a key attraction for Italian investors.”
The World Bank also noted that the global shift towards decarbonisation poses challenges, particularly for carbon-intensive exports such as fertilisers and cement, under the EU’s Carbon Border Adjustment Mechanism (CBAM).
It therefore noted that, to sustain export growth, Algeria must boost productivity, attract more FDI, and green its industrial processes.
“Algeria holds significant potential to diversify its exports and integrate into global value chains,” notes Kamel Braham, the World Bank’s Resident Representative in Algeria. “The challenge now lies in building on this momentum by addressing structural barriers and enhancing competitiveness.”
Potential amid regional competition
Algeria is not the only country in the North African region aiming to leverage port logistics, but its bold strategy signals a promising economic future. One of its competitors is Morocco, which is also pressing ahead with the expansion of its shipping infrastructure. Morocco operates 44 ports, including 14 dedicated to foreign trade, and officials say the kingdom’s location between the Atlantic Ocean and Mediterranean Sea gives it strategic importance in global supply chains.
Middle East Online reported in May 2026 that the country plans to invest around 75 billion dirhams ($8 billion) under its Ports Strategy 2030. Quoting Sanae El Amrani, Director of Ports and the Maritime Public Domain at the Ministry of Equipment and Water, the report noted that the programme includes six new ports, expansions at five existing ports, and the development of six ship-repair docks.
Rabat also seeks to raise total annual port-handling capacity above 450 million tonnes by the end of the decade from around 390 million tonnes currently. But stakeholders believe this only highlights the relevance of port logistics in the region, which Algeria is actively leveraging. Algeria, with its large population, domestic market, and more direct access to the Sahel countries, has the potential for a long-term advantage.
As Kamar Global, a dominant player in the Algerian port sector, put it, “Excellent machinery keeps Algeria’s vital ports sailing and growing.”
“Due to its location and harbours, Algeria has always been an important gateway between Europe and Africa,” it added in a publication titled ‘Ports are the lifeblood of Algeria’s economy.’
Algeria’s strategy to diversify its economy through port expansion and non-oil exports might be a game changer for the country in the Mediterranean region.
