Sales Representative in Algeria

Overview by

Commercial Intermediaries

Trading Companies
  • Type of Organization
The distribution market is totally fragmented; no actor can boast that he has a dominant position in the country. The commercial management of a distribution network is not easy in Algeria. In addition, at least 80% of payments are made in cash. One's personal relations with a distributor are a key element and likely to be of great interest, precisely for the recovery of commercial debts.

For these various reasons, the best way to break into the Algerian market, especially in the first phase, is to negotiate a distribution agreement with an importer/wholesaler who already has a distribution network. These people are not specialized and work in several sectors.

  • Main Actors
The fragmentation of distribution and the fact that a large part of it goes through the unofficial sector does not allow the main actors to be shown to advantage. There is no list of importers/distributors.
  • Type of Organization
Apart from some wholesale fruit and vegetable markets, concentrated in large cities, the profession is struggling to develop a structure.
  • Main Actors
As regards fruit and vegetables, in Algiers two wholesale markets are vying for the leading position: Eucalyptus and Boufarik.
Useful Resources
List of sales agents in fruit and vegetables in the wholesale market.
List of professional wholesalers in cereals and foodstuffs for livestock

Using a Commercial Agent

The Advantages
More realistic for a small or medium enterprise as concerns marketing strategy. Most often they are exclusive agents for the whole country. Some accept regional exclusivity.
Where to Be Vigilant
The agent should be chosen for his motivation, his interest in the product, his references and the range of products he is in charge of. Supplementary commercial investments will be necessary to support the agent's work (catalogs, samples of products, etc.). It is wise to make sure of the financial capacities of the chosen distributor(s).
Elements of Motivation
The total amount of commission is an important element for motivation. Sometimes recourse is had to a system of contests and competition between agents. Supervision and close contact may be necessary for a good follow-up of the agent's activity.
The Average Amount of Commission
An agent on commission is paid according to the turnover he achieves. According to the type of product sold, commission is from 1 to 10%.
Breach of Contract
Everything depends on the contract signed and its obligations; however, observing a reasonable period of notice is recommended.
Finding a Commercial Agent
Laniac, international directory of commercial agents
Find Sales and Distribution Service Providers in Algeria on

Setting Up a Commercial Unit

The Advantages
Setting up in Algeria can prove to be very expensive, especially as regards real estate.
Where to Be Vigilant
It should be considered especially with a long term view.
Different Possible Forms of Settlement
  • A Representative Office
A representative office may be necessary to obtain data about the market or other and to provide promotional support. However, as a representative office cannot be involved in commercial transactions or generate income, it cannot manage orders directly. Algerian legislation imposes a deposit of 20 000 USD and requires an authorization for setting up a liaison office.
  • A Branch Office
The principle of a branch office is like that of a liaison office; both can recruit locally, as long as they pay duties and taxes, according to the legislation in force in Algeria.
  • A Company
Any natural person or legal entity, foreign or not, has the right to set up a commercial operation in Algeria. The only procedure to be observed is registering with the National Center of the Register of Commerce.


Evolution of the Sector
Franchising is not explicitly recognized in Algerian law, although the notion of licenses and patents is established by the Code of Commerce. Fiscally, the concept of royalties has been explicitly established, the only difficulty being that the transfers are not recognized by the Bank of Algeria, especially if they do not lead to a flow of goods and services, quantifiable by import. The only way to get round this problem is to put the royalties through items of training and technical assistance.

For further information about franchises, visit the Algeria pages of the website.

Some Big Franchises
Carrefour, food
Naf Naf, clothing
Dessange, hair style
Quick, fast food
Yves Rocher, body care
Speedy, garage
Pigier, educational programmes
Geneviève Lethu, dish
Carré Blanc, house linen
Pano Boutique, cars
For Further Information
Algerian Franchise Federation

Finding Assistance

Export Trading Companies
CFAO, distribution companies in Africa
Find more on about Selling to Algeria.

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