AAPI: Transforming Investment into Sustainable Economic Growth
BY Dr. Hana Saada
Algiers — Investment has become a central pillar of Algeria’s current economic agenda, with the Algerian Investment Promotion Agency (AAPI) positioning itself as a key institutional driver in the country’s development strategy, amid efforts to convert announced projects into tangible economic output.
More than 21,000 investment projects have been registered to date, reflecting what officials and analysts describe as a shift from intentions to implementation, with the focus now placed on transforming these commitments into production units, job creation, and measurable national wealth. According to official figures, declared investments exceed 9,000 billion dinars, with projected employment opportunities surpassing half a million jobs.
Within this framework, AAPI is gradually emerging as a central actor in the execution of the state’s economic policy, in what observers describe as a broader effort to strengthen governance and improve investment coordination.
Hakim Bouharb, an economics lecturer at the Faculty of Economic, Commercial and Management Sciences at Blida University, said the recent installation of AAPI’s Board of Directors by the Prime Minister, with the involvement of multiple economic stakeholders, goes beyond administrative reform and conveys “a clear political and economic message.”
He argued that the initiative marks a new phase in national economic governance aimed at enhancing efficiency, institutional capacity, and operational effectiveness. According to him, AAPI is now expected to fully assume its role in Algeria’s ongoing economic transformation.
Bouharb noted that recent structural reforms have begun to produce visible results, particularly through the easing of administrative constraints that previously slowed project registration and implementation. He added that the agency has significantly modernised its working methods through digitalisation, dedicated investor platforms, and expanded promotional tools aimed at improving economic attractiveness.
Priority, he said, is being given to strategic sectors including manufacturing industries, pharmaceuticals, extractive industries, and mining, with the broader objective of strengthening the national industrial base and increasing economic resilience.
He also highlighted the growing role of technological and innovative projects, noting that Algeria is increasingly prioritising digital solutions and value-added sectors capable of generating new growth dynamics.
While acknowledging progress in project validation and transition to execution phases, Bouharb cautioned that a significant number of investments are still in early stages of implementation. He described AAPI’s evolving role as not merely quantitative but increasingly qualitative, focusing on economic transformation rather than registration alone.
He further underlined improvements in transparency and investment promotion, stressing that digital platforms have become essential tools for reducing administrative delays and increasing clarity in investment procedures.
However, he warned that time remains a critical factor in investment competitiveness, noting that delays in processing can increase costs and undermine economic opportunities. He also reiterated that Algeria’s economy remains in a consolidation phase requiring continued structural efforts.
Bouharb concluded that recent reforms—initiated since 2021 across institutional, regulatory, and financial dimensions—are gradually producing results, particularly through improved coordination between domestic investment and foreign partnerships. He also highlighted fiscal incentives and regional development measures targeting the High Plateaus and southern regions as key components of a more balanced territorial development strategy.
Looking ahead, he stressed that improving the business environment depends not only on regulatory frameworks but also on institutional coordination, adding that the new AAPI board is expected to strengthen governance mechanisms. He concluded that economic development requires collective mobilisation around a shared national strategy rather than reliance on a single institution.
Adapted from:
https://www.horizons.dz/2026/06/aapi-le-pari-de-transformer-les-investissements-en-croissance/
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