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Algeria: A Digital Export Perspective

Market analysis, growing e-commerce, and Italy-Algeria synergies: new prospects for digital expansion in North Africa.

1. Context and Economic Opportunities

Algeria is emerging as a market with strong potential for digital export, partly due to its population of approximately 47 million people. The government has launched decisive initiatives to stimulate economic development through e-commerce. Although the online sector still represents a relatively limited share of the economy, the situation is changing rapidly. A favorable bilateral context with Italy — driven by the so-called "Mattei Plan" and significant infrastructure investments — makes the country a strategic destination for Italian companies looking to expand online in North Africa.

Italy is currently Algeria's top customer and one of its main suppliers. In 2024, Italian exports to Algeria exceeded €2.9 billion, with more than 150 Italian companies operating on the ground. In addition, the volume of bilateral trade is close to €14 billion (2024), and Italian investments in Algeria amount to approximately €8.5 billion.

The Mattei Plan aims to position Italy as a strategic bridge between Europe and Africa, extending cooperation beyond energy into manufacturing, agri-food, digital technology, and advanced industry. Among recent developments, the submarine cable project between Italy and Algeria, developed by Sparkle and Algérie Télécom, promises to enhance connectivity by offering greater capacity, reliability, and advanced services such as cybersecurity and cloud computing.

2. Digital Infrastructure and Online Habits in Algeria

Algeria has made significant progress in digital infrastructure. As of early 2025, internet penetration reached 76.9% of the population (around 36.2 million users). Mobile connectivity is particularly widespread, with active cellular connections exceeding 54.8 million.

Mobile broadband coverage (3G/4G) surpasses 98%, and FTTH fiber adoption grew from 2% in 2020 to 23% in the first half of 2024. Mobile internet is among the most affordable on the African continent, although fixed-line connections remain slightly more expensive than the global average.

The expansion of fixed and mobile internet subscriptions has reached a significant milestone, with over 48.5 million subscriptions. This reflects strong access capacity, though it does not always translate into daily use or advanced online consumption.

In terms of speed, in 2025 average mobile download speed stands at approximately 23.4 Mbps, while fixed-line speed is 15 Mbps — both growing compared to the previous year (+9.6% and +22.2%, respectively). However, challenges remain, particularly in rural areas and regarding service quality.

3. Digital Behavior and Social Media

Social media usage continues to grow significantly. As of January 2025, active social network users exceeded 25.6 million, equal to 54.2% of the population. Facebook's advertising reach covers 70.5% of internet users, with a gender split of 58% men and 42% women.

Instagram counted 12 million users (about 25.5% of the population), with a reach of 33.1% of internet users; among its adult audience (18+), 47.2% are women and 52.8% are men. TikTok reached 21.1 million adults (18+), equal to 68.9% of this age group and 58.2% of total internet users. Messenger reaches 15.8 million users (33.5% of the population) and 43.6% of the online population.

4. E-commerce and Payment Systems

Algeria's e-commerce market is expanding rapidly: in 2024 it reached nearly USD 799 million, with estimated annual growth of 15–20%. This growth rate is expected to hold steady in 2025.

The main obstacles remain low payment card ownership (only 2.8% hold credit cards, 22.9% hold debit cards) and limited adoption of mobile or online payments (only 8.2% of the population made such payments in 2023; 4.7% sent money online). Additional barriers include regulatory and institutional constraints: the regulatory framework is not yet fully developed, and social and institutional support for e-commerce needs strengthening. That said, measures are underway to improve delivery services, simplify customs procedures, and implement a "single-window" customs platform to facilitate cross-border trade.

5. Demographic Targets and Social Media Opportunities

Algeria's digitalization is driven by a young and increasingly connected population. While precise average-age data is not available, social media statistics point to an active demographic that is well positioned to be reached through targeted campaigns.

Facebook, Instagram, TikTok, and Messenger together cover a significant share of users, with TikTok in particular dominated by a male adult audience (62.2%), though still highly relevant among women (37.8%). Instagram's audience is nearly evenly split between men and women. For B2C campaigns, segmenting by age, interests, and platform can improve effectiveness, particularly through visual and video-driven formats.

6. Digital B2C Marketing Strategies for Italian Companies

The context described above suggests several opportunities for Italian businesses:

a) Invest in digital infrastructure and reliability The Sparkle submarine cable initiative improves digital performance and latency — a crucial asset for e-commerce platforms and online customer experience.

b) Define digital sales and promotion channels Build an omnichannel experience (e-commerce + social commerce) leveraging leading social platforms (Facebook, Instagram, TikTok) for awareness and acquisition. TikTok and Instagram, given their high growth rates and reach, are key to engaging younger segments.

c) Focus on alternative payment methods Promote solutions such as cash on delivery, mobile wallets, or local payment networks until card adoption becomes more widespread — for example, through partnerships with local payment operators or fintech providers.

d) Leverage the appeal of Made in Italy The prestige of Italian products in sectors such as fashion, home furnishings, food and beverage, and design can be a strong driver. Campaigns that emphasize quality, craftsmanship, and sustainability can build consumer trust.

e) Take a gradual, test-and-learn approach Develop dedicated portals in French/Arabic with localized content; test logistics and pricing; establish feedback loops with consumers. Collaborate with local logistics providers and regional platforms.

f) Leverage institutional support and incentives Make use of promotional tools and the opportunities offered by the Mattei Plan to access grants, incentives, and matchmaking with Algerian counterparts.

7. Conclusion

With internet penetration above 76%, an expanding e-commerce market, and a young, socially active population, Algeria offers fertile ground for the digital expansion of Italian companies. Bilateral infrastructure investments and synergies with the Mattei Plan further strengthen this opportunity.

Algeria's e-commerce market remains modest compared to major global players, ranking 71st globally.

Its value of approximately USD 1 billion in 2025, with short-term growth forecasts reaching USD 1.5 billion, is still far from the hundreds of billions or trillions seen in other major international markets. Nevertheless, it ranks as Africa's 6th largest e-commerce market, after Nigeria, South Africa, Egypt, Kenya, and Morocco.

However, the strong growth context (projected CAGR of approximately 12–17%) makes it a segment with meaningful potential, particularly in relation to digital expansion across North Africa. Online payment transactions for goods and services have tripled between 2020 and 2024, with fashion, cosmetics, and healthcare among the fastest-growing sectors.

Italian companies looking to approach the Algerian online market should:

  • Invest in a user-friendly e-commerce platform, localized both linguistically and culturally.
  • Prioritize logistics and favor locally widespread payment methods.
  • Run targeted campaigns on the most popular social media platforms.
  • Position the Italian brand as a symbol of excellence.
  • Take advantage of ongoing institutional and partnership opportunities.

This scenario is already being driven by digitalization policies, growing access and connectivity, and strong Italo-Algerian cooperation. A well-structured B2C marketing strategy — focused on infrastructure, local culture, payments, and social media — can turn these favorable conditions into concrete results for Italian businesses.

In conclusion, Algeria represents an e-commerce market with significant potential for Italian companies. While challenges remain around payment infrastructure and logistics, the country's growing digitalization, strong appreciation for "Made in Italy," and solid bilateral relations create fertile ground for expansion. Building trust, adapting to local specificities, and leveraging the reputation of Italian product quality are the keys to turning this potential into lasting commercial success — further strengthening the economic and cultural bridge that connects Italy and Algeria.