Industrial development aims to promote industrial activity by establishing a territorial dynamic around Industrial Technical Centers, consortia and clusters to allow capacity building and diversification of products in industrial sectors.
Within the framework of the development policies of industrial activity, the priority sectors benefit from tax advantages provided for by the finance law for 2015, in particular its article 75 which mentions: Investments made in certain activities relating to the industrial sectors listed below, benefit:
- a temporary exemption for a period of five (5) years, corporate income tax (IBS) or total income tax (IRG) and tax on the turnerover (TAP),
- a 3% interest rate subsidy on bank loans.
- steel and metallurgical industries,
- hydraulic binders,
- Electrical and Household Appliances,
- industrial chemistry,
- mechanical and automotive,
- pharmaceutical companies,
- shipbuilding and ship repair,
- advanced technologies,
- agri-food industry,
- textiles and clothing, leather and derived products,
- leather and derived products
- wood and furniture industry.
In particular, an increased effort is being made to develop the raw material processing industries, including food processing, steel and downstream hydrocarbon industries, with the assistance of domestic and foreign investors. This effort, which will generate added value in the local exploitation of agricultural, mining and mineral resources, will allow the development of other branches of local industry.
As for investments in industrial processes, subcontracting activities will benefit from an incentive framework for access to land and financing and a preferential tax regime. The aim is to promote economic diversification capacities by encouraging, through customs and fiscal advantages, the substitution of unproductive imports by national industrial production.
In terms of productive investment reviving and improving the level of foreign direct investments (FDI) attractiveness, the revision of rule 51/49 and the right of pre-emption were enshrined in the complementary finance law for 2020.
Strategic development of industrial sectors
Major axes of industrial strategy
Strengthening of the national industrial potential by encouraging companies, especially the private sector, to participate more widely in the development of the country, through:
- Establishment of public policies to support these companies upgrading and modernization, particularly in terms of technology, management and training of human resources;
- Facilitations granting in kind of national preference granted to companies for market penetration;
- Creation and development of various facilitation structures in support of industrial enterprises.
National Agency for Investment Development
The Algerian Investment Promotion Agency –AAPI– is a public institution of an administrative nature, endowed with legal personality and financial autonomy.
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