Overview

Algeria's industrial policy of small business creation and local integration
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The 2014 slowdown in oil prices revealed the vulnerability of Algeria’s economy, heavily reliant on hydrocarbons, and highlighted the need for a paradigm shift. The government sees the industrial sector as having the potential to drive diversification and reduce the import bill. In addition to heavy industrial subsectors, such as steel (see analysis) and cement, a number of other industries have…

Overview

Algeria aims to lower food import bill and attain self-sufficiency in key crops
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A number of driving forces are behind Algeria’s efforts to boost domestic agricultural output and cut the food import bill. First, the country is looking to diversify away from its dependence on hydrocarbons revenue, given fluctuating international oil prices; second, the population is forecast to rise by 25% to nearly 50m people by 2030, thus substantially increasing food demands; and third, Algeria…

Overview

Demographics and hydrocarbons invigorate Algeria's economic outlook
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Algeria’s population reached 42.3m by the end of 2018, making it the second-largest country in North Africa after Egypt, which surpassed 100m earlier in the year. With demographic growth of 1.7% in 2017, Algeria’s Ministry of Health expects that the population will reach 51m by 2030. The population remains relatively young, with a median age of 27.8 and 29.2% of residents under the age of 15. Life…

Overview

Reforms encourage recovery of Algeria's economy
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Under its constitution, which was last amended in 2016, Algeria is a semi-presidential republic, with a president acting as head of state and a prime minister acting as head of government. Elected for a five-year term, the president is empowered to appoint the prime minister and a council of ministers, following consultation with the parliamentary majority. While within this structure executive power…

Overview

Algeria's authorities tackle new issues in the banking sector
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The decision by authorities to embark on a programme of monetary financing towards the end of 2017 marked somewhat of a turnaround in a difficult year for Algeria’s banks. A competitive dynamic has remained in recent years, with no new entrants, exits, mergers, acquisitions or privatisations of note. In fact, early 2018 saw the government announce that it was backtracking on plans to float one or…

Overview

Algeria's favourable economic conditions support growth of insurance
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Following a muted performance in 2017 on the back of sluggish growth in the wider economy, market players in Algeria’s insurance industry anticipated that improved conditions in 2018 would support a sector recovery, a view partially borne out by the sector’s performance in the first half of 2018. A particular bright spot is the life segment. Although it accounts for just 10% of the overall sector…

Overview

Algeria's bourse upgrades infrastructure and regulations
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Stability has been the order of the day in Algeria’s capital markets of late, with little in the way of new products, listings or other impetus for significant evolution. The authorities’ decision to embark on a programme of non-conventional monetary financing in late 2017 has restored liquidity to the banking system, increasing the availability and reducing the cost of bank lending (see Banking…

Overview

New reinsurance programmes cover natural disasters in emerging markets
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While advanced economies generate the vast majority of insurance and reinsurance business, emerging markets are posting higher rates of growth. Complementing this underlying trend is a strong and expanding interest in catastrophic risk, which by nature tends to pertain to emerging markets. This is coming alongside fast-paced, sector-transforming innovation, which could provide a major boost to industries…