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…
Pharmaceuticals is one of Algeria’s most dynamic manufacturing industries. The state-owned SAIDAL group is the main producer, and there were approximately 80 other local and foreign manufacturers operating in the segment in 2018. Following the 2009 imposition of restrictions on the import of goods that can be produced locally, national output has grown rapidly, leading to rising levels of self-sufficiency.…
Agriculture in Algeria is primarily rain-fed and often suffers from droughts, which have worsened in recent years due to climate change. The government, therefore, has plans to expand irrigation networks to cover 2m ha, or 25% of arable land, by 2021 – 700,000 ha more than the 1.3m ha irrigated in 2018. This need was recognised some years ago, with the 2015-19 development plan allocating $18bn to…
Since achieving independence in 1962, Algeria has pursued an activist foreign policy, pushing interests of developing countries through the Non-Aligned Movement, as well as in groups like the G-77. Current president of the republic, Abdelaziz Bouteflika, served as the 29th president of the UN General Assembly in 1974 during his lengthy term performing as the country’s minister of foreign affairs. During…
Despite being a major oil producer, Algeria is a net fuel importer and is thus in the paradoxical position of being rich in hydrocarbons but lacking in refined products. It is currently in the process of developing its refining operations in order to satisfy domestic fuel demand, which has grown steadily since the 2000s. Reducing Fuel Imports The development of refining activities is now more urgent…
As oil output declines and fields mature, state-owned Sonatrach is relying more on Algeria’s extensive gas reserves to maintain exports while meeting growing domestic demand, with gas the focus of its SH2030 Leading the Change transformation strategy. There are two unconventional and offshore exploration wells planned for 2019, seven for 2020 and 12 in 2021 – with half to be carried out by Sonatrach…
In November 2018 the government released a new series of tenders for electricity production from renewable sources. A total of 200 MW of solar capacity is available for development, of which 150 MW can be bid on by international independent power producers (IPPs) in partnership with local firms, while 50 MW are reserved for state-owned utilities operator Sonelgaz. This is a key step in opening up the…
