Sonelgaz Acquires ENEL Azazga to Propel Algeria’s Industrial Sovereignty and Expand African Market Reach
✍️ BY: Dr. Hana Saada
Algiers – December 2025 – In a move that underscores Algeria’s accelerating industrial strategy and its ambition to assert itself as a regional energy powerhouse, the Minister of Energy and Renewable Energies, Mourad Adjal, announced on Monday in Tizi-Ouzou the acquisition of the Electro-Industries Company (ENEL) of Azazga by the national energy group Sonelgaz. ENEL, a specialized manufacturer and distributor of distribution transformers and electric motors, will be fully integrated into Sonelgaz’s portfolio starting from the first quarter of 2026.
Adjal clarified that the decision had been validated by public authorities three months earlier following Sonelgaz’s proposal, arguing that the acquisition represents a cornerstone in the State’s forward-looking energy strategy. He stressed that Algeria is now pursuing a more assertive industrial diplomacy, intent on conquering external markets—particularly those on the African continent. He highlighted existing commercial agreements with Mauritania and Nigeria, alongside promising negotiations with Senegal, describing them as strategic gateways into fast-growing energy sectors.
The minister commended ENEL’s industrial performance over the past two years, stating that the company’s output has helped slash Algeria’s electrical equipment import bill by more than 60%. He further revealed that 90% of national demand for electrical equipment is now supplied domestically, representing a remarkable shift toward local production capacity and strategic autonomy. This industrial inflection, he suggested, marks an essential step in reducing external dependency and strengthening Algeria’s competitive resilience.
During his visit, Adjal assessed the progress of a major partnership project involving Sonelgaz, Electro Industries, and the Indian firm Vijay Electric Limited, aimed at producing high-voltage electrical transformers. Initiated in 2018 with a value of 4.7 billion Algerian dinars, the project is expected to create 358 permanent jobs but has been hindered by delays due principally to the Covid-19 pandemic and breaches of contractual obligations by executing companies. The minister instructed project supervisors to ensure completion by the first quarter of 2027 and to initiate recruitment processes by the second half of 2026.
Adjal also used his visit to engage with local authorities, announcing a raft of measures designed to improve living conditions in the wilaya. A substantial supplementary budget will be allocated for rural electrification, aimed at alleviating the burdens facing thousands of households still awaiting connection—an estimated 35,000 lacking electricity access and 11,000 yet to be connected to gas infrastructure. The minister also directed local sector officials to expedite administrative procedures and advance several key operations, including the relocation of electrical lines obstructing investment projects and the opening of new service branches in underserved districts.
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