Algeria Industry Sectors

The main industry sectors in Algeria are agriculture, fishing, minerals, finance and tourism.

Algeria’s unemployment rate in 2010 was 10.034 percent, down from 12.4 percent in 2009; with 14 percent of the labor force employed in agriculture, 13.4 percent in industry, 10 percent in construction and public works, 14.6 percent in trade, 32 percent in government and 16 percent in other sectors.

The main industry sectors in Algeria are agriculture, fishing, minerals, finance and tourism.

Algeria’s unemployment rate in 2010 was 10.034 percent, down from 12.4 percent in 2009; with 14 percent of the labor force employed in agriculture, 13.4 percent in industry, 10 percent in construction and public works, 14.6 percent in trade, 32 percent in government and 16 percent in other sectors.

Algeria Industry Sectors: History

Traditionally, Algerian industries were concentrated around the major financial centers of Algiers and Oran. Major industries included cement factories, carpet mills, chemical plants, food processing plants, oil refineries and textiles.

During the French colonization period, several industries were set up for better utilization of Algeria’s abundant natural resources.

After gaining independence, French companies were nationalized. In additional, the government concentrated on robust development of the petrochemical industry as the major revenue generating sector. 

Algeria Industry Sectors

Algeria industry sectors can be classified as follows:

 

• Agriculture: Algeria’s agricultural sector contributes approximately 8 percent to the country’s GDP. However, it employs nearly 14 percent of the labor force in 2010. Due to the area spanning the Sahara desert, only 3 percent of the country’s land is arable. Major crops produced include barley, potatoes and wheat. Dates are also produced specifically for exporting. After 2005, the share of agriculture reduced considerably due to the emergence of other industrial sectors. This was followed by a sharp rise in food imports. Agricultural activities are concentrated along the costal line in the north of Algeria. 

• Fishing: The fishing industry in Algeria thrives along the Mediterranean Sea. France is the largest importer of Algerian fish, followed by Spain and Italy. 

• Finance: Public banks in Algeria suffer from non-performing loans given to state-owned enterprises. According to IMF reports, non-performing loans account for 37 percent of the total advances from Algerian banks (as per 2007 data). Since 2005, the government pushde for banking and finance sector reforms for higher efficiency and transparency.

• Minerals: Algeria is abundant in natural resources. It has rich deposits of iron, copper, zinc, lead, mercury, oil and natural gas. In 2006, Algeria’s helium production accounted for 13 percent of the world’s total output. It has the eight largest natural gas reserve in the world.

Rich in natural resources and a large unemployed workforce, Algeria has good opportunities for industrial growth in the near future. However, the Algerian economy places too much dependency on its petrochemical sector, which is a matter of concern.