Algeria Gate: Algeria is accelerating its economic transformation under President Abdelmadjid Tebboune through two major initiatives that highlight the country’s dual focus on domestic industrial development and regional energy cooperation.
The advancement of the integrated phosphate project and the launch of exploration drilling at the Kafra South-East 1 well in Niger underscore a clear strategy of resource valorization, economic diversification, and stronger African partnerships.

Integrated Phosphate Project: Building a High-Value Industrial Chain
Sonatrach has signed two engineering, procurement and construction (EPC) contracts with Italy’s Saipem and China’s CHEC, in partnership with the Algerian Fertilizer Company (AFC), marking a decisive step in the integrated phosphate project.
The first phase includes a phosphate extraction and enrichment complex at Bled El Hadba in Tébessa with a capacity of 5.5 million tonnes per year, an integrated industrial complex at Oued El Kebrit in Souk Ahras for phosphate and nitrogen fertilizers, and supporting port infrastructure in Annaba.
Operating under an accelerated EPC Fast Track model, the project is scheduled to deliver its first enriched phosphate in the first quarter of 2027, with fertilizer production starting in the fourth quarter of the same year. Once fully operational, it is expected to produce approximately 6 million tonnes of enriched phosphate and 4 million tonnes of fertilizers annually (including DAP, MAP, NPK and urea), along with strategic products such as sulfuric acid, phosphoric acid and ammonia.

President Tebboune has closely monitored the project, directing that phosphate exports from Bled El Hadba begin no later than March 2027 and that the phosphoric acid plant enter service by the end of 2026 or early 2027. The initiative is projected to create around 12,000 direct jobs, mainly in Tebessa, Souk Ahras, Skikda and Annaba. Supporting infrastructure includes a 422 km mining railway linking Bled El Hadba to Annaba and the expansion of the port to handle large vessels, positioning Annaba as a major logistics hub for mineral exports.
Experts view the project as one of Algeria’s most significant industrial achievements because it moves beyond raw extraction to create a full value chain of high-value products. It supports non-hydrocarbon exports, responds to global demand for fertilizers driven by food security needs in Africa and Asia, and reduces reliance on primary commodity exports.
Kafra South-East 1: Strengthening the Algeria-Niger Strategic Partnership
In parallel, Algeria is deepening its energy partnership with Niger. Prime Minister Sifi Ghrieb co-chaired the official launch of drilling works at the Kafra South-East 1 exploration well in Agadez alongside his Nigerien counterpart, Ali Mahaman Lamine Zeine.

The launch represents a new stage in the strategic partnership initiated by President Tebboune and Nigerien President Abdourahamane Tiani. The well forms part of broader exploration efforts to assess the potential of the promising Kafra oil field ahead of future development and production phases.
A key technical achievement was the mobilization and transport of the 2,000-horsepower ENF-13 drilling rig from Algeria to the remote Kafra site by the National Drilling Company (Enafor), working with Sonatrach’s Sipex and Niger’s Sonidep under challenging logistical and security conditions.
The partnership extends beyond exploration. It covers research, development, production, refining, petrochemicals, marketing, training and technology transfer. Algeria is supporting Sonidep in crude oil marketing and capacity building, will undertake major maintenance at the Zinder refinery, and continues evaluating additional blocks, including Bilma. Enafor has committed to progressively using Nigerien companies and recruiting and training local youth.

Prime Minister Ghrieb emphasized that this cooperation forms part of a broader African energy partnership aligned with sustainable development and continental integration, including progress on the Trans-Saharan gas pipeline. The approach also prioritizes the development of border regions as zones of shared growth, security and stability in the Sahel.

A Unified Vision for Diversification and African Cooperation
Both projects reflect President Tebboune’s consistent emphasis on reducing dependence on a single resource, building industrial capacity, creating jobs and strengthening Algeria’s role as a driver of regional cooperation. The phosphate complex anchors domestic value-added industrialization and export diversification, while the Kafra partnership expands Algeria’s energy cooperation model across the continent.
Together, these initiatives demonstrate a practical shift from planning to execution, positioning Algeria to enhance its economic sovereignty, support African integration, and deliver long-term benefits through strategic infrastructure and cross-border partnerships.

