Algeria Prioritizes Pharmaceutical Supply Stability Amidst Growing Local Production
Image: Echorouk
Takeaway
The Algerian government's push for pharmaceutical self-sufficiency presents a compelling opportunity for international investors looking to tap into a growing market. Companies specializing in pharmaceutical manufacturing technology, raw material production, and quality control systems should explore partnerships with local Algerian firms. The focus on local production may create barriers to entry for companies solely relying on imports, but those willing to invest in local manufacturing facilities could gain a significant competitive advantage.
Algeria's Minister of Pharmaceutical Industry, Ouacim Kouidri, emphasized the critical need to ensure a consistent supply of medicines to the national market and to meet citizens' needs during a meeting with economic stakeholders in the pharmaceutical industry. The meeting, held at the Ministry headquarters on Tuesday, included the President of the National Union of Pharmacy Operators (UNOP), Abdel Rahim Zouhair Nader, and the Vice-President of the Algerian Economic Renewal Council (CREA), Abdel Wahid Karrar. Kouidri stressed the importance of providing sufficient quantities of pharmaceutical products to maintain market stability.
Algeria has been actively working to bolster its pharmaceutical sector in recent years. In December 2025, President Abdelmadjid Tebboune highlighted that Algeria is home to over a third of Africa's pharmaceutical establishments, with nearly 230 out of 649 factories located within the country, and more than 100 new projects under development. The government designated the pharmaceutical sector as a strategic national priority to strengthen health security, leading to the creation of a dedicated ministry. In 2021, local drug production by pharmaceutical companies in Algeria amounted to €2.5 billion.
Algeria's pharmaceutical market is the second-largest in Africa, estimated at $4 billion USD, and has experienced double-digit growth of 17% over the past decade. The government aims to meet 70% of national pharmaceutical needs through local manufacturing to reduce imports. To achieve this, Algeria is investing in projects to locally produce pharmaceutical raw materials, aiming to reduce imports of these inputs by 60%. Saidal, a public pharmaceutical group, has launched strategic projects to manufacture raw materials for drugs, including those for cancer, cardiovascular diseases, diabetes, and inflammation.
The focus on local production benefits Algerian nationals, who own 80% of the country's medicine manufacturing capabilities, allowing them to compete with foreign firms. The government's policies incentivize local production through measures such as banning the import of certain locally produced drugs and offering tax incentives. These policies have already led to significant savings, with approximately €800 million saved on imports in 2021 due to new regulations limiting imports to essential products not sufficiently manufactured locally.
Looking ahead, Algeria aims to strengthen its pharmaceutical exports, particularly to African countries. The country ratified the treaty establishing the African Medicines Agency (AMA) in April 2021, which should facilitate increased pharmaceutical trade within Africa. The Algerian Pharmaceutical Drug Delivery Market is projected to reach $324.53 million by 2032, growing at a CAGR of 8.66% from a value of $159.38 million in 2024. This growth is supported by expanding therapeutic needs and stronger clinical adoption, positioning Algeria as a key player in the African pharmaceutical landscape.