Algeria - Market Entry StrategyAlgeria - Market Entry Strategy
Given the intricacy of the Algerian bureaucracy, language barriers, and the difficulty securing meetings with Algerian government officials, it is essential for U.S. exporters to form partnerships with qualified Algerian agents and distributors who understand the business culture, maintain solid government contacts, and possess industry expertise. Recent business-to-business (B2B) meetings and roadshows in the United States have contributed to paving the way for future partnerships between U.S. companies and Algerian start-ups or SMEs.
The Commercial Section at the U.S. Embassy in Algiers provides matchmaking services for U.S. exporters wishing to identify Algerian partners and can provide industry-specific guidance to firms interested in the Algerian market. Since English is not widely spoken, the Commercial Service can refer U.S. exporters to local translators. U.S. firms are encouraged to consult with local attorneys or consultants regarding technical and legal matters. Again, the Commercial Section can refer U.S. firms to local experts.
Quick sales are not common in this market, and significant time must be invested to convince Algerian decision makers to adopt new solutions, particularly if they involve new technologies or concepts. U.S. firms should therefore consider the Algerian market from a long-term perspective. The Algerian government favors foreign companies that contribute to the country’s long-term development in terms of both employment and transfer of technology.
U.S. firms working directly with Algerian partners, rather than managing their relationship through one of the neighboring countries, have reported much better relationships. Many have stated that access to opportunities, especially government-related projects, increases dramatically when managed directly from the United States via a local partner (rather than managing via France or Morocco). Companies should be aware that in some cases the Algerian government limits access to certain sites and offices if the company representative is from a neighboring country.