PETALING JAYA: Lion Group is set to invest US$6 billion (RM27.5 billion) in Algeria, the country’s ambassador to Malaysia, Abdelhafid Bounour, told SunBiz in an exclusive interview.
Abdelhafid said the Malaysian conglomerate’s substantial investment aligns with Algeria’s strategic vision to be the gateway to Africa and beyond.
“For example, Asian and European countries can export to Africa via Algeria. We have all the necessary infrastructure for this. The same applies to African countries; if they want to send goods to Europe, for instance, they can do so via Algeria. This is because we have the advantage of an association agreement with Europe,” he said.
The EU-Algeria Association Agreement was signed in April 2002 and entered into force in September 2005. The agreement sets out a framework for the EU-Algeria relationship in all areas, including trade. It helps the EU and Algeria trade goods more freely, with some advantages for Algeria. The goal was to create a free trade area by September 2020, which mostly happened, except for a few tariffs that Algeria still needs to remove.
SunBiz reached out to Lion Group and it confirmed the plan to invest in Algeria. However, it did not disclose further details.
“We would like to inform you that we are in the preliminary stage of discussions with the authorities there. As such, we are not able to disclose any information at this time,” the group said via email.
According to the Algeria Press Service, Lion Group has begun procedures for the construction of “structurally important” industrial projects worth US$6 billion in mineral-rich Algeria.
Meanwhile, Algeria Invest stated that Lion Group is interested in the country’s aluminium and steel industries.
“Referring to opportunities for cooperation and investment, the Malaysian group expressed its willingness to explore investment opportunities and establish industrial projects in the aluminium and steel sectors in Algeria.
“The two sides also discussed the opportunities for cooperation and partnership in many areas of common interest, particularly in the context of the Malaysian group’s strategy to set up structuring industrial projects in Algeria,” it stated.
Lion Group was established in the 1930s and today has operations in Malaysia, China, Singapore, Hong Kong, Cambodia and Laos. It is involved in retail, property development, mining, steel, agriculture and services. Since 1992, the group has ventured into China with operations in retail and property businesses.
The group has three companies listed on Bursa Malaysia with two in Singapore and one in Hong Kong. It has an annual group turnover of about RM10.86 billion (US$2.4 billion) and provides employment for more than 11,000 people.
