Summary:

On 9 September 2025, Egypt’s multinational electrical company, Elsewedy Electric, signed a $2.5 billion investment agreement with the Algerian Investment Promotion Agency (AAPI) to support a series of industrial projects, promote sustainable development, and facilitate technology transfer between the two sides. 

The agreement, concluded on the sidelines of the fourth Intra-African Trade Fair (IATF 2025), aims to broaden the investment base, ensure mutual benefits, and strengthen economic ties between Egypt and Algeria. 

Outlook: 

By partnering with a leading regional firm like Elsewedy Electric, the agreement will help Algeria attract new investment, diversify its industrial base, and strengthen economic ties within North Africa. While Algeria has long taken a relatively isolated, unilateral approach to diplomacy it has, in recent months, been leveraging partnerships on energy projects to engage with other countries. 

Successful implementation of these projects could strengthen investor confidence and support Algeria’s broader goals of sustainable development and industrial modernization, particularly as the country seeks to expand both its renewable energy initiatives and its hydrocarbon sector.  

Achieving these objectives will require additional investment to ensure the successful launch and operation of such projects. 

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