In line with rising demand for electricity, Algeria has invested significantly in its power sector over the past 10 years, with projects primarily carried out by state-owned power company Sonelgaz and its subsidiaries. Major upgrades embracing enhanced technologies have also been brought on-stream; however, there remains a pressing need to further optimise production and reduce consumption…
Language Modern Standard Arabic is used in schools, government offices and the media. In practice, Darja, the local Algerian dialect of Arabic, is more commonly used and varies from one region to another. French is frequently spoken in business, though this is less true outside Algeria’s main urban areas where Arabic or Tamazight are spoken in all aspects of daily life. English is becoming…
With an area of 2.38m sq km, Algeria became the largest country in Africa when the Republic of South Sudan gained its independence from Sudan in 2011. Located in the Maghreb region of North Africa, it has a Mediterranean coastline of just under 1000 km and land borders with seven countries and territories – Libya, Mali, Mauritania, Morocco, Niger, Tunisia and the Western Sahara – at a combined…
The collapse in oil prices has weighed heavily on the Algerian economy, giving rise to wide twin deficits in the budget and current account. Given that the state is still heavily involved in the non-hydrocarbons sector of the economy, but depends on hydrocarbons exports for the bulk of its revenues, it is unsurprising that efforts to close the budget deficit – which have been under way since…
Algeria’s banking sector has held up relatively well despite recent macroeconomic weakness. Credit growth remained in positive territory through the first three quarters of 2017, albeit having slowed from the double-digit rates seen prior to 2016. Lenders are capitalised well in excess of Basel III norms, while profitability remains high, particularly among private sector banks. However,…
As Algeria looks to curb its imports in the face of declining state revenues, speeding up development of the agriculture sector has become a pressing goal. As the country seeks to diversify away from hydrocarbons, the sector is well placed to contribute. Agriculture accounts for around 13% of GDP and employs some 11% of the country’s active population. Output improved between 2007 and 2017…
Many of the key building blocks for a successful industrial sector, including abundant energy reserves and mineral raw materials, well-developed infrastructure, and proximity to major export markets are present in Algeria. Despite this, the economic contribution of industry is relatively small. However, some segments such as agri-business are comparatively well developed, and activity in heavy…
As a key industry for Algeria’s economic development and diversification, the construction sector’s growth forecast remains positive despite the slowdown of the wider economy. There are major projects in transport and housing in the pipeline, though a flatter rate of expansion is expected due to investment cutbacks, and the buoyant curve of the sector’s inflow throughout 2012-16 has begun…
As the largest country in Africa, and home to a variety of topographies and geologies, Algeria is rich in substantial mineral reserves. These are currently underutilised, as the sector has attracted little investment in recent decades. According to figures cited in local press, around 60% of the country has not been properly explored. Algeria’s size and the need for infrastructure development…
Meeting the demand for transport infrastructure in Africa’s largest country is a priority for the government of Algeria. In 2015 the country began unfolding its current five-year development plan, a major sector reconfiguration programme that allocates AD832.7bn (€6.9bn) to the upgrade, extension and construction of strategic segments, primarily maritime and rail. The strategy builds on…
