✍️ BY: Dr. Hana Saada
Algiers – November 2025 – Algeria and Germany have reached a new milestone in their bilateral relations with the official launch of an institutional twinning program between the Algerian Investment Promotion Agency (AAPI) and Germany’s Federal Ministry for Economic Affairs and Energy (BMW E). The initiative, inaugurated yesterday, signifies a decisive step toward modernizing economic governance and consolidating a long-term strategic partnership between Algiers and Berlin.
Funded by the European Union for a duration of eight months, the program was signed by Omar Rekkache, Director General of the AAPI, Diego Mellado Pascua, Ambassador of the European Union to Algeria, and Gerlind Heckmann, representative of the German ministry. The ceremony brought together senior officials from both nations, underscoring the central role investment now plays in the renewed Algeria-Germany partnership.
According to an AAPI communiqué, the program aims to foster the exchange of expertise and best practices in three key areas: the modernization of management tools, the improvement of governance frameworks, and the development of mechanisms for promoting and attracting investment. The agency seeks to strengthen its institutional capacity through digitalization and the strategic use of economic data, thereby accelerating procedures, ensuring transparency, and enhancing Algeria’s attractiveness to foreign investors.
In his remarks, Mr. Rekkache emphasized that this project represents a genuine platform for knowledge transfer and a catalyst for transforming Algeria’s economic administration. By integrating international best practices, he noted, the AAPI aspires to become a dynamic force in improving the business climate, directly contributing to the diversification of the productive base and the growth of value-creating investment—an ambition fully aligned with President Abdelmadjid Tebboune’s vision of economic sovereignty and sustainable development.
A Partnership Rooted in Expanding Bilateral Dynamics
This institutional twinning program is part of a steadily expanding Algerian-German cooperation dynamic that has gained remarkable momentum since 2020. Germany has emerged as a strategic reference partner for Algeria—not only because of its industrial prowess but also for its expertise in economic and technological transitions. By 2021, the volume of bilateral trade had already approached €2.6 billion, dominated by German exports of machinery, vehicles, and chemical products, alongside Algerian exports of hydrocarbons and petrochemicals. Yet the partnership has since evolved beyond conventional trade, now focusing on innovation, technology transfer, and the development of a decarbonized economy.
Energy and Green Hydrogen: New Pillars of Cooperation
The energy transition stands today as the most promising pillar of Algerian-German collaboration. Notably, in December 2022, Sonatrach and the German company VNG AG signed an agreement to explore the green hydrogen value chain—a flagship project symbolizing a forward-looking partnership. This momentum was further bolstered by the visit of German Minister for Economic Affairs and Climate Action, Robert Habeck, to Algiers in February 2024, which led to the creation of a joint task force on hydrogen.
Both nations have set an ambitious medium-term objective: contributing to Europe’s energy supply through the “SouthH₂ Corridor,” which will enable Algeria to provide up to 10% of the European Union’s green hydrogen needs by 2040. This project epitomizes the complementarity between Algeria’s abundant solar and natural resources and Germany’s cutting-edge technological expertise. The agreements also foresee natural gas deliveries via the Transmed pipeline starting in 2026.
Beyond Economics: Expanding Cooperation into Culture and Governance
The scope of cooperation has also expanded beyond economics. Culturally and institutionally, bilateral relations have deepened with the entry into force, in February 2025, of a new cultural agreement strengthening academic and linguistic exchanges—continuing the mission of the Goethe Institute in Algiers. These initiatives reflect a shared commitment to building a partnership grounded in knowledge, education, and closer ties between the two civil societies.
Moreover, Germany’s recognition of Algeria as a stabilizing regional actor in North Africa and the Sahel adds a crucial geopolitical dimension to their collaboration. The relationship now extends to joint research in security, as well as the prevention of technological and environmental risks, illustrating its increasingly strategic and multidimensional nature.
A Cooperation Anchored in the Future
The AAPI–BMW E twinning program stands as a tangible manifestation of Algeria’s determination to embed its economic modernization within international standards, enhance institutional performance, streamline investor pathways, and make its economy more competitive and diversified.
For Algeria, this initiative aligns with the government’s broader reform agenda aimed at improving the business climate, accelerating high-value investment, and fostering inclusive growth. For Germany, it represents a profound investment of confidence in an emerging market of immense strategic potential for Europe—both energetically and industrially.
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