Advances in financial technology (fintech) have been slow to arrive to Algeria. A low bank penetration rate remains a significant challenge, notwithstanding substantial progress in recent years (see analysis), as do a cultural preference for cash and the dominance of state-run banks that have little incentive to innovate. Framework In June 2017 the government announced that Algérie Poste would roll…
In 2018 Algeria and China celebrated their 60th anniversary of diplomatic relations, a particularly notable achievement considering China has recently become the number-one source of Algerian imports. “The two countries are pioneers that have made history in many areas in the expansion of China-Arab ties,” China’s minister of foreign affairs, Wang Yi, said in a statement at the China-Arab States…
In developing and emerging market economies, the share of the population with access to basic financial services tends to lag significantly behind that of advanced economies. This can be chalked up to the relatively smaller size and sophistication of the banking sector, lower incomes, a higher degree of informal employment and patchy identification records prevalent in less developed countries. As…
Investment funds are smart financing tools that encourage private investment by providing shortand medium-term capital resources to companies. Private equity financing supports companies looking to finance their foundation, growth and in some cases recovery and maintenance. Furthermore, in an economic context in which financing needs are steadily increasing, they represent a real operational solution…
One of the most important budgetary reforms to be introduced in Algeria in recent years was the promulgation of the Organic Finance Law on Finance Laws in August 2018. Annual finance laws from 2021 will be prepared under procedures and parameters set out in the new Organic Law. Requiring several years before it is fully implemented, the legislation represents the first such fundamental change to the…
The fall in oil prices from mid-2014 onwards not only heralded an economic slowdown and a sharp rise in Algeria’s twin deficits, it also called into question the longer-term sustainability of the country’s hydrocarbons-dependent development model. In July 2016 the authorities unveiled their new growth plan, a strategic vision to transform the economy by 2030. The overarching objective is to promote…
Faced with slowing economic growth and an increasingly constrained banking sector, Algeria decided to change its macroeconomic strategy in October 2017. As part of the new plan, monetary and fiscal policies would be eased simultaneously, an approach which has come to be known in Algeria as “quantitative easing”. Instead of continuing to narrow the budget deficit every year until coming to balance…
In the early 2000s frequent water shortages fuelled social unrest and curbed production capacity across the economy. To address these chronic challenges, the government launched an extensive programme to diversify the water resource base, and improve storage and distribution in the medium to long term. The successes of the sector’s development have been central to broader attempts to diversify the…
There are a large number of capacity-building projects under way in Algerian steel, which has become a thriving subsegment within the country’s industrial landscape. Forecasts indicate output will increase by 7m tonnes to 12m tonnes per annum (tpa) by the end of 2020. A milestone was reached in 2017 with the start of operations at the Algerian-Qatari Bellara steel complex in the wilaya (province)…
In addition to its hydrocarbons wealth, Algeria is rich in a variety of minerals, such as phosphate, gold, iron, zinc, lead and others. These ores are still largely untapped but the diversification drive deployed by the government to reduce the country’s reliance on oil and gas and direct it towards more sustainable growth could lead to greater development of this heretofore marginal industry. Structure…
