Journan — Accueil

2027 Finance Bill: Algeria moves to tighten control over the tobacco market

The 2027 draft Finance Bill proposes significant reforms to secure Algeria's tobacco industry under national control. The legislation aims to enforce the 51/49 ownership rule for foreign investors and restrict tobacco distribution to Algerian-owned companies. Manufacturers will be required to obtain government approval and maintain a minimum share capital of 500 million DZD, with at least 51% held by resident nationals. For snuff or chewing tobacco, full local ownership is mandated. These regulations seek to prevent capital flight and ensure foreign subsidiaries do not benefit from distributions that could be transferred as dividends abroad. Furthermore, an interministerial committee will be created to oversee licensing and market regulation, preventing potential contractual loopholes similar to those previously exploited in the management of the STAEM tobacco firm.