Germany Expanded Trade Ties With Algeria in 2026
Operators should monitor shifting North African supply chains as German investment replaces French business presence.
Updated on Sept. 21, 2026 in International Trade
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Germany increased its annual trade turnover with Algeria to $3 billion as of 2026, becoming the country's fourth-largest supplier. The expansion follows diplomatic efforts to secure energy supplies, contrasting with a notable decline in French business activity in the region.
Why it matters
Germany is actively pivoting toward Algeria to source energy and replace Russian gas imports, creating new opportunities for trade and industrial collaboration. This shift reflects a broader regional realignment as Algeria reduces reliance on French imports amid political tensions.
Annual trade turnover between Germany and Algeria reached $3 billion, up from $1.75 billion previously, while bilateral trade between Algeria and France contracted to €8.6 billion compared to €11.2 billion in 2024. Additionally, 600 French companies reported bankruptcy in 2025.
The players
Sonatrach
The state-owned Algerian oil and gas company that functions as the primary energy supplier for the nation.
Abdelmadjid Tebboune
The President of Algeria who oversaw the expansion of economic ties with Germany.
VNG
A German natural gas wholesaler that is securing energy supplies from Algeria to diversify away from Russian sources.
Stellantis
A multinational automotive corporation that is scaling production capacity within the Algerian market.
The details
Germany secured 31 contracts and memoranda during high-level diplomatic visits in July and August 2026, including an LNG supply deal between VNG and Sonatrach. Industrial integration is deepening with the launch of an Opel production facility by Stellantis and the Halil group. These moves are supported by new direct flight infrastructure between Algiers and Berlin, facilitating easier logistics for firms moving between the two markets.
Timeline
2024 saw trade between Algeria and France reach €11.2 billion.
600 French companies declared bankruptcy throughout 2025.
President Abdelmadjid Tebboune visited Berlin in July 2026 to sign 31 agreements.
The German Foreign Minister traveled to Algeria in August 2026 for energy talks.
Market Landscape
This pivot follows the development trajectory of the SoutH2 Corridor project, which aims to transport 4 million tons of green hydrogen to Germany annually. The intensification of German-Algerian ties marks a significant departure from the historical dominance of French trade in the region.
Businesses operating in North Africa should review their supplier diversity to mitigate risks associated with shifting political alignments and the decline of French trade volumes. Companies should also monitor energy cost fluctuations as the German-Algerian LNG supply agreements begin to take effect.
The takeaway
The rapid expansion of German industrial and energy interests in Algeria signals a structural change in Mediterranean trade networks. Operators should track the 31 signed contracts for procurement opportunities and audit their dependency on French-origin logistics in the region.
What happens next
French presidential elections are scheduled to occur in 2027, which may further influence future economic policy and trade dynamics with North African partners.
Further reading
For more on evolving cross-border commercial relationships, see International Trade.
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Should nations prioritize new energy trade partners over existing long-term diplomatic or historical alliances?
