As internet penetration continues to climb and payment infrastructure continues to improve, Algeria’s e-commerce market is experiencing explosive growth, with the country’s e-commerce transactions surpassing $1.5 billion in 2024, according to the latest data.
growth engine
Upgraded digital infrastructure: increased internet penetration and improved logistics network, with 73,607 point-of-sale terminals (TPEs) in January 2025, up 8% from the end of 2024, and a total transaction value of 52.89 billion dinars in the same month.
Payment innovations: 56%, 41% and 61% year-on-year growth in mobile, TPE and internet payments respectively in 2024, with nearly 500 local websites connected to the e-payment system, and a cumulative transaction value of over 37 million dinars.
Epidemic catalyst: the new crown epidemic accelerated the formation of “non-contact consumption” habits, promoting the popularity of social e-commerce and online transactions.
Social e-commerce dominates
Social networks (e.g., Facebook, Instagram) are the main transaction scenarios, and influencers promote their brands through millions of subscribers to precisely reach young audiences, with remarkable efficiency in the dissemination of localized marketing content.
Policy frameworks and technological breakthroughs
E-Commerce Law No. 18-05 of 2018 clarifies rules for electronic transactions, consumer protection and data security standards.Act No. 18-07 mandates businesses to handle customers’ personal data in a compliant manner, enhancing trust in the marketplace.
In 2025, we plan to launch an instant payment system, through the cooperation between the bank and Satim, to compress the TPE transaction time from 48-72 hours to “instant payment”, which will directly improve the efficiency of the merchant’s cash flow.
Opportunities and Challenges
Opportunities: traditional merchants: expanding customer base through online channels and reducing physical operating costs; SMEs and entrepreneurs: relying on a low threshold to enter the market, digital advertising and logistics supporting industries will benefit simultaneously.
Challenges: Regulatory gap: some e-commerce activities are not clearly defined by regulations and there is a compliance gray area; trust bottleneck: lack of stability in logistics timeliness and after-sales service, which affects consumer experience.
1. Online retailing and digital services
Cutting into the social e-commerce track: Algeria’s social network is the main trading channel, and influencers’ marketing effect is remarkable. Chinese enterprises can cooperate with local netizens and social platforms to promote their brands through localized content and accurately reach young consumer groups.
Developing vertical e-commerce platforms: targeting the needs of the Algerian market (e.g., electronic products, FMCG, household goods, etc.), building e-commerce platforms for niche areas, and combining them with localized payment methods (e.g., TPE Instant Payment, Mobile Payment) to enhance the convenience of transactions.
2. Participation in payments and logistics infrastructure
Technology export in payment field: Chinese enterprises can rely on China’s mature mobile payment experience and cooperate with local Algerian banks and payment institutions (such as GIE Monétaire and Satim) to participate in the construction of instant payment systems or provide mobile payment solutions, which will help increase the popularity rate of local e-payment.
Logistics infrastructure investment: Algeria’s logistics network still needs to be improved, Chinese companies can invest in intelligent warehousing, cross-border logistics hubs or drone delivery pilot projects to improve logistics reliability and efficiency, while meeting the needs of e-commerce companies and consumers for “fast delivery”.
3. Leveraging the China-Africa cooperation framework to explore cross-border e-commerce opportunities
Build China-Algeria cross-border e-commerce platform: Integrate China’s supply chain with Algeria’s market demand, establish B2B/B2C cross-border e-commerce channel to help Chinese commodities (e.g., electronic products, light industrial products) to enter into Algeria, and at the same time, promote Algeria’s specialties (e.g., agricultural products, handicrafts) to export to China.
Participation in intergovernmental cooperation projects: Focus on Algeria’s “Digital Transformation” strategy and e-commerce cooperation programs within the framework of the Forum on China-Africa Cooperation (FOCAC), e.g. applying for funding for projects related to the “Digital Silk Road”.
Algeria’s e-commerce market is in a fast-growing period, and Chinese-funded enterprises can focus on the three major directions of e-commerce platform operation, payment and logistics infrastructure, and digital service output, while taking compliance as a prerequisite, relying on localized cooperation and technological advantages, and realizing their own development in the process of filling in the gaps in the market.
