Electronics and household appliances: New measures to support the industry

These guidelines were unveiled on Thursday by Industry Minister Yahia Bachir during a plenary session of the National People's Assembly (APN) devoted to oral questions. The minister reiterated that this sector "is one of the most strategic" due to its potential for job creation and its ability to reduce dependence on imports.

Among the decisions announced is the forthcoming revision of customs tariffs applied to raw materials and components used in the manufacture of electronic equipment and household appliances. This revision should reduce production costs and, ultimately, impact on consumer prices.

The minister also indicated that certain materials will be included in the investment incentive scheme to encourage more players to enter this sector. This procedure will help to densify the industrial fabric, increase the rate of local integration and place the national industry in a position of sustainable competitiveness.

Mr Bachir also highlighted the positive developments observed in the domestic market, both in terms of supply and quality. He welcomed the emergence of export capabilities, particularly at Condor, Iris and Bomare Company, companies that are successfully establishing "Made in Algeria" products in demanding markets, including Europe, thanks to standards that comply with international standards.

According to the Minister of Industry, "this sector has become a promising driver of productivity, contributing to wealth creation and strengthening the competitiveness of domestic industry."

A rapidly expanding sector

The sector now comprises around 150 companies, 87% of which are private, providing more than 30,000 direct jobs. This structure reflects the emergence of a solid industrial base, supported by investments in local integration, component manufacturing and the establishment of a national network of subcontractors.

Long dependent on imports, the domestic electronics and household appliance industry has been undergoing a gradual transformation in recent years. Leading companies such as Condor, Iris and Bomare Company now produce strategic components locally, including plastic parts, sheet metal, printed circuit boards, electronic cards and mechanical assemblies.

Some units have already achieved more than 35% local integration on products such as air conditioners and washing machines. Others have achieved total integration, particularly in the manufacture of refrigerators. This progress is based on rising domestic subcontracting, stimulated by public measures to support productive investment.

The sector's growth is also supported by encouraging official data. According to the Ministry of Industry, local production now covers 83% of domestic demand, a threshold confirmed at the International Household Appliances Exhibition in February 2024. This level reflects an industry based on maturity and stability.

Aware of the challenges, the government is increasing incentives to attract new investors. It is banking on modernised infrastructure and an advantageous tax framework to make Algeria a leading industrial hub in North Africa, capable of attracting partners focused on European and, to a lesser extent, African markets.