Egyptian industrial group Elsewedy Electric has signed a landmark agreement with the Algerian Investment Promotion Agency (AAPI) to invest $2.5 billion in Algeria. The deal was sealed during the Intra-African Trade Fair in Algiers and marks one of the largest foreign industrial investments in the country in recent years.
Key Details of the Deal
- Value: $2.5 billion
- Parties Involved: Elsewedy Electric and Algeria’s Investment Promotion Agency (AAPI)
- Scope of Investment:
- Renewable energy projects
- Manufacturing of cables, transformers, and other electrical equipment
- Knowledge transfer and technology sharing
- Expansion of energy infrastructure
- Existing Presence: Elsewedy already operates a subsidiary in Algeria, producing cables and transformers for both local use and exports.
- Timing: The deal was announced on 8 September 2025 at the Intra-African Trade Fair.
- Future Ambitions: The company is negotiating about ten additional projects in Algeria for 2025-2026, subject to government approval.
Strategic Importance
Algeria has been seeking to diversify its economy and attract major foreign investments beyond its oil and gas sector. The deal with Elsewedy Electric aligns with the country’s strategy to strengthen domestic manufacturing, improve energy infrastructure, and scale up renewable energy capacity.
For Elsewedy, the move reinforces its presence in North Africa while supporting its long-term growth strategy of expanding across African markets. The agreement also highlights the increasing importance of intra-African trade and cooperation in industrial development.
Challenges to Watch
- Regulatory Approvals: Many of the proposed projects require clearance from Algerian authorities.
- Implementation Timelines: Large-scale industrial projects may face delays linked to permitting, logistics, and infrastructure readiness.
- Local Capacity: Ensuring skilled labour, supply chain development, and workforce training will be crucial for project success.
Expected Benefits
- Creation of thousands of jobs across Algeria.
- Boost to local supply chains and reduced dependence on imports.
- Increased renewable energy capacity in line with Algeria’s sustainability goals.
- Stronger trade and economic ties between Egypt and Algeria.
Conclusion
Elsewedy Electric’s $2.5 billion investment deal with AAPI is a game-changing opportunity for Algeria’s industrial and energy landscape. If successfully implemented, it will accelerate Algeria’s push toward industrialisation, support renewable energy expansion, and deepen regional economic cooperation.
