Algeria is making a decisive push to reduce its heavy reliance on imported sugar, with billionaire Issad Rebrab’s industrial group Cevital unveiling a US$600 million investment to revive large scale sugar beet production in the country. The ambitious project signals a broader shift in Algeria’s economic strategy, as authorities and private sector players look to strengthen food security and reduce exposure to volatile global commodity markets.
The initiative will combine industrial scale farming with a fully integrated sugar processing and refining complex in the Saharan region of Ghardaïa. At full capacity, the project is expected to create around 5,000 jobs, making it one of the most significant agro industrial investments in Algeria in recent years. Construction and preparatory work are already underway, including deep water drilling operations reaching depths of nearly 385 metres to secure irrigation in the arid environment.
Early pilot tests conducted in 2024 delivered sugar extraction rates between 18 percent and 20 percent, levels considered commercially viable for large scale production. These results have provided confidence to investors and policymakers that Algeria can successfully re establish a domestic sugar beet industry, which had previously collapsed due to logistical inefficiencies and inadequate infrastructure.
A key feature of the new project is its integrated design. The refinery will be built close to the cultivation fields to address a longstanding challenge in sugar beet processing. Unlike sugarcane, sugar beet begins to lose its sugar content rapidly after harvest if not processed immediately. This time sensitivity historically undermined Algeria’s earlier attempts at local production. By situating the processing plant near the farms, Cevital aims to minimise transport delays and maximise output efficiency.
The economic context behind the investment is hard to ignore. Algeria is currently Africa’s largest sugar importer, bringing in an estimated 2.3 million tonnes annually to meet domestic demand. According to international trade data, the country spent more than $931 million on sugar imports in 2023 alone. This dependence exposes the economy to fluctuations in global prices, currency pressures, and supply chain disruptions, particularly during periods of geopolitical instability or rising commodity costs.
The new project is therefore not just an agricultural initiative but a strategic economic move. By producing sugar locally, Algeria could significantly reduce its import bill, improve its trade balance, and build resilience against external shocks. It also aligns with a wider policy direction seen across Africa, where governments are increasingly prioritising local production in key sectors such as food, energy, and manufacturing.
Issad Rebrab, long regarded as Algeria’s richest man, built Cevital into the country’s largest privately owned business group since founding it in 1998. The company has expanded across multiple sectors, including agribusiness, steel, electronics, and retail, positioning itself as a central player in Algeria’s industrial landscape. In recent years, the group has intensified its focus on food processing and agro industry, reflecting both market demand and national priorities.
Leadership of the company transitioned in 2022 to Malik Rebrab, marking a generational shift as the group accelerates its expansion strategy. The sugar beet project is one of the flagship investments under this new phase, highlighting a long term commitment to large scale industrial agriculture.
Beyond Algeria, the move reflects a broader trend across emerging markets. Countries are increasingly looking to localise production of essential commodities to reduce import dependence and enhance economic sovereignty. The COVID 19 pandemic, followed by global supply chain disruptions and geopolitical tensions, exposed vulnerabilities in over reliance on imports. As a result, investments in domestic production capacity have gained urgency.
However, the project is not without challenges. Farming in the Saharan environment will require sustained access to water, efficient irrigation systems, and careful environmental management. The success of the initiative will depend on how effectively these challenges are addressed, particularly in a region where water scarcity is a persistent concern. Additionally, scaling production to meet national demand will take time, meaning imports are unlikely to decline immediately.
Still, if successful, the project could transform Algeria’s sugar industry and serve as a model for similar initiatives across the continent. It represents a shift from consumption driven imports to production led growth, with potential spillover effects in job creation, rural development, and industrial capacity building.
For Algeria, the stakes are clear. Reducing a near billion dollar annual import bill while creating thousands of jobs and strengthening food security is a compelling proposition. For Cevital, it is an opportunity to deepen its role as a cornerstone of the country’s economic transformation.
