The two projects are expected to strengthen bilateral trade, which does not exceed $200 million per year, despite the enormous potential of the two neighboring countries.

Algerian President Abdelmadjid Tebboune and his Mauritanian counterpart Mohamed Ould Cheikh El Ghazouani laid the foundation stone on Thursday, February 22, for projects involving a free zone and an 840 km long road connection to boost trade between the two countries.

Mr. Tebboune declared on this occasion that this free zone located in the border wilaya of Tindouf (in the east of Algeria) offers tax and customs advantages to Algerian and Mauritanian economic operators.

"Mauritanian goods and goods of clear origin are welcome and will be exempt from taxes, the same for Algerian products," he stressed, inviting economic operators to "invest in the free zone and take advantage of tax and customs exemptions in commercial and industrial exchanges between the two countries."

The Algerian president had already announcement, on February 13, 2024, the creation of free zones between Algeria and five border African countries, namely Mauritania, Mali, Niger, Libya and Tunisia, during the current year with a view to strengthening regional economic integration.

Often located on the border of two countries, a free zone is a fenced area dedicated to trade with no customs duties and offering warehousing, storage and distribution facilities. It also allows industrial companies that set up there to benefit from certain tax exemptions.

The Algerian and Mauritanian leaders also kicked off the project to build a road linking Tindouf to the Mauritanian city of Zouerate, which will stretch over a length of 840 km.

The agreement relating to the construction of this road was signed in December 2021, on the sidelines of the state visit made by the Mauritanian President, Mohamed Ould Cheikh El Ghazouani, to Algeria.

The road project is expected to be carried out by around ten Algerian companies, according to the official Algerian press agency. APS. Messrs Tebboune and El Ghazouani also inaugurated two fixed border posts between Algeria and Mauritania.

Trade between Algiers and Nouakchott does not exceed 200 million dollars per year, despite the enormous potential of the two countries, according to data published last September by the Algerian Ministry of Commerce and Export Promotion.

Ecofin Agency