The Role of Regional Communities in Supporting and Promoting Local Investment (A study in light of Investment Law 22-18 and Local Authority Laws)

Abstract

In Algeria, regional communities operate as a key economic tool under the municipal and provincial laws, as well as Investment Law 22-18. They attract investment by providing industrial land and preparing the necessary infrastructure for projects. They also play a coordinating role through decentralised single windows, simplifying and digitising administrative procedures. This aims to create a model of ‘productive municipalities’ that generate wealth, create jobs and achieve sustainable development independently of financial dependence on the central authority. Between 2022 and 2025, the Algerian Agency for Investment Promotion recorded over 19,000 projects valued at more than 61 billion USD, which are expected to create around 470,000 direct jobs. Notably, statistics reveal a dominant presence of local capital, accounting for over 98% of projects, underscoring the success of the decentralised approach in stimulating local economic activity. Over half of these projects have commenced implementation, primarily in the manufacturing, agriculture, and tourism sectors, reflecting a clear trend towards diversifying the national economy through regional initiatives.