Algeria has taken a significant step toward reshaping its economic future by passing a new law that allows foreign companies to own up to 80% of mining projects, an unprecedented shift for the OPEC member as it seeks to move beyond its dependency on oil and gas.

The legislation, approved on Monday by a majority of lawmakers in Algeria’s lower house of parliament, is designed to simplify investment procedures, boost the country’s underdeveloped mining sector, and cut down on billions of dollars’ worth of annual imports, according to government officials, Bloomberg reported.

While Algeria remains a major natural gas supplier to Europe, its mineral exports have historically been limited.

The country, which borders phosphate-rich Morocco and gold-producing Mali, is now turning its attention to tapping into its own sizable reserves of phosphate, iron ore, lead, and zinc.

The law introduces a streamlined process under which foreign and local companies can obtain a single mining permit covering both exploration and extraction, valid for up to 30 years.

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The move is part of a broader strategy to diversify Algeria’s economy and reduce its vulnerability to global energy price swings.

Hydrocarbons currently account for over 75% of the nation’s exports and roughly half of government revenues.

The International Monetary Fund has projected 3.5% economic growth for Algeria in 2025 and has repeatedly urged the government to expand non-oil sectors and attract more private capital into strategic industries.

With the lower house’s approval secured, the bill now heads to the Senate for final passage.

Algeria’s Senate rarely opposes decisions from the lower house, suggesting the legislation is likely to become law soon.

Across Africa, the trend around resource control is heading in the opposite direction, with many governments tightening foreign ownership laws in key sectors.

Countries such as South Africa and military-led regimes in Mali, Burkina Faso, and Niger have been moving to increase domestic control over natural resources and strategic assets.

Algeria’s pivot sets it apart, betting that foreign capital and expertise will unlock the full potential of its mining industry and reduce its dependence on fossil fuels in the long run.

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