Algeria, satellite image. North is at top. Algeria (unmasked area) is located in North Africa. It borders the Mediterranean Sea to the north (top), Tunisia to the northeast (top right), Libya to the east (right) and Morocco to the west (left). Mali and Mauritania border to the southwest and Niger to the southeast. Algeria's capital city Algiers is situated approximately half-way along the country's Mediterranean coast. Most of the south of the country lies within the Sahara Desert and is sparsely populated.