Algerian industry needs to focus more on vertical integration in the upstream and downstream segments if it is to create more added value.
There are still several elements that slow the expansion of the industrial sector in Algeria. The problem of access to land is one of them and it remains a significant issue, as land is still expensive and scarce.
Investing is also an administrative challenge, as it requires many bureaucratic processes. This poses a problem for a variety of reasons and, most of all, limits the potential for job creation that industrial projects would normally generate.
According to the current law, transferring local currency outside of the country is not allowed, which significantly limits the ability of Algerian companies to execute direct investments abroad.
To encourage the industrial sector to climb up the value chain, Algeria must permit the acquisition of industrial actors abroad and in turn allow certain local firms to become proper multinationals.