Faith Nyasuguta
Algeria has passed a groundbreaking law allowing foreign investors to own up to 80% of mining projects– a major policy shift as the North African nation seeks to reduce its heavy dependence on hydrocarbons and boost its mineral wealth.
On Monday, the Algerian parliament overwhelmingly approved the legislation, which is designed to simplify investment procedures, revamp the mining sector, and cut back on expensive imports. The new law comes at a time when Algeria, a key natural gas supplier to Europe, is increasingly looking to diversify its economy amid fluctuating energy prices.
Currently, oil and gas account for more than 75% of Algeria’s exports and nearly half of its state revenue. This makes the country highly vulnerable to global price shocks. Recognizing this economic fragility, authorities are now betting on untapped mineral reserves to drive new growth.
The government has identified significant potential in phosphate, iron ore, lead, and zinc – resources that could position Algeria as a leading player in Africa’s mineral trade.
The law introduces a single mining permit that will be valid for up to 30 years and cover both exploration and extraction activities, making the process far more attractive and streamlined for foreign firms. The bill will now move to the upper house (Senate), which is expected to endorse it with minimal resistance.
This legislative change also reflects a growing trend across Africa, where governments are reshaping ownership laws to either increase domestic control or encourage targeted foreign investment in strategic sectors. South Africa, for instance, has long debated similar policies, while military-led governments in Mali, Burkina Faso, and Niger are actively reclaiming national control over mining and energy assets.
For Algeria, the strategy is twofold: boost domestic production of key minerals to reduce import bills and grow export earnings from a more diversified economic base. The International Monetary Fund (IMF), which forecasts 3.5% growth for Algeria in 2025, has also urged the country to open up to more private and foreign capital.
With its new mining law, Algeria is sending a clear signal to global investors: the country is ready for business – beyond oil and gas. The hope is that this move will attract long-term capital, technology, and expertise that will not only unlock Algeria’s vast mineral potential but also create jobs and infrastructure in the process.
RELATED:
