By Nik Ekechukwu- Uweru
A new economic corridor appears to be opening from northern fringes of the West African sub region through to North Africa going by a new trade collaboration between Algeria and Mauritania, DDM has learnt.
The two North African countries opened a gate at their border to strengthen ties and promote trade between the two countries.
They have agreed to establish a free trade zone and build a road connecting Tindouf in Algeria to Ezouirat in Mauritania.
This development has been received positively by locals, with expectations of economic benefits for various sectors such as hotels, restaurants, taxi services, and public and housing workers.
But this new trade treaty shouldn’t be taken in isolation.
Algeria recently announced plans to invest $442 million in energy projects in Mali, Niger, and Libya, demonstrating its efforts to diversify its economy beyond oil and gas sales.
Mali and Niger recently pulled out of ECOWAS, its regional economic bloc and trade between them and Nigeria, their giant neighbor has been on the freeze.
But Algeria aims to open free trade zones with other countries like Mali, Niger, Tunisia, and Libya in 2024.
Algeria appears to be totally rivaling Morocco especially trade treaties with West Africa.
The country has seen growth in non-hydrocarbon exports, reaching $7 billion in 2022 and $5.3 billion in the first 11 months of 2023.
Algeria holds a trade surplus in products like ceramics, cement, sugar, and dates.
The decision to strengthen ties with Mauritania is seen as a positive step, with experts noting that more attention should have been given to Mauritania in the past.
