Algeria Tightens Import Controls, Mandates Bank Domiciliation Before Shipment
Image: Algerie Eco
Takeaway
The Bank of Algeria's new directive adds another layer of complexity for international firms exporting to Algeria. Companies should assess their Algerian partners' readiness to comply with the new pre-shipment domiciliation rule. Supply chain managers should factor in potential delays and increased administrative burdens, which could impact pricing and contract terms. Investors should monitor how these import controls affect key sectors like automotive and pharmaceuticals, where Algeria is actively promoting local production.
The Bank of Algeria (BA) has issued a new directive to all accredited intermediary banks, effective today, May 14, 2026, requiring that all import-related bank domiciliations be completed before the foreign supplier ships the goods. This measure aims to tighten control over external trade operations, reinforcing existing regulations on import activities. The move is the latest in a series of measures designed to strengthen oversight of external commerce, particularly since the implementation of the Provisional Import Program (PPI) in July 2025.
Since 2025, Algeria has been actively refining its import policies, with key changes including the establishment of new regulatory bodies and the dissolution of ALGEX (National Agency for the Promotion of Foreign Trade). In September 2025, Executive Decrees No. 25-233, 25-234, and 25-235 led to the creation of the Algerian Import Authority and the Algerian Export Authority. These bodies are designed to monitor import operations, combat unfair business practices, manage national market needs databases, and streamline export formalities. A digital platform was launched to track import programs for resale activities, aiming to curb foreign currency outflows and improve market supply management.
Prior to this latest directive, importers were already required to submit an import forecast program for the second semester of 2025, endorsed by the Ministry of Foreign Trade, before any banking domiciliation or opening of letters of credit could occur. Since January 1, 2026, all standalone service imports require prior authorization from the Ministry of Foreign Trade. The government has been using digital tools to guide industrial policy and trade strategy, with a goal to increase non-hydrocarbon exports to $29 billion by 2030.
The new regulations are likely to impact international companies exporting goods to Algeria, as they will need to ensure their Algerian partners have completed all banking procedures before shipment. Companies that fail to comply with the regulation will find that banks are unable to process letters of credit or facilitate payments to foreign suppliers, thereby effectively halting any planned import activities. These measures could particularly affect sectors relying on imported goods, potentially leading to supply chain adjustments and increased scrutiny of import operations.
Looking ahead, businesses should closely monitor further updates to Algeria's import regulations and ensure compliance with the latest requirements to avoid disruptions. Companies should also focus on establishing robust local partnerships and seeking counsel from experts well-versed in Algerian regulations. The Ministry of Foreign Trade typically responds within seven days to submitted forms. The government is targeting $29 billion in non-hydrocarbon exports by 2030.