Algeria has announced the repatriation of Algerian students stranded in Morocco, according to The New Arab. The decision, revealed on January 19, 2021, follows the breakdown of diplomatic relations between the two countries in August 2021, which led to the closure of airspace and land borders. The move targets students who had been studying in Morocco but found themselves unable to return home due to the sudden severance of ties.
Logistical and financial strain on families
The repatriation also highlights the broader economic strain on Algerian households supporting students abroad. According to the Bank of Algeria, remittances from the diaspora reached $1.8 billion in 2020, a significant portion of which funds education. With Morocco no longer an option, families may now redirect their spending toward universities in Tunisia, France, or Canada—countries that already host large Algerian student populations. For entrepreneurs in the education sector, this shift could create opportunities in student housing, language training, or online tutoring services targeting Algerians abroad.
Impact on Algerian students in Canada
However, the cost of studying in Canada remains a barrier. Tuition fees for international students average CAD 30,000 per year, nearly triple the cost of Moroccan universities. For Algerian entrepreneurs, this gap presents a niche market. Startups offering scholarship matching, student loan facilitation, or even virtual exchange programs could fill the demand. Additionally, the Algerian diaspora in Canada—estimated at 80,000—could play a role in supporting new arrivals through mentorship or housing networks.
Diplomatic tensions and business risks
For startups in fintech or digital payments, the situation highlights the need for resilient systems. Algerian families sending money to students in Morocco previously relied on informal channels or third-party intermediaries. The repatriation may accelerate the adoption of formal remittance platforms, such as Algeria’s CIB or foreign services like Wise or PayPal, which are increasingly used by the diaspora.
Opportunities for the diaspora
The Algerian government has already signaled interest in leveraging the diaspora for economic growth. In 2020, it launched the “Algerian Startup Act,” offering tax breaks and funding to entrepreneurs, including those based abroad. The repatriation of students could feed into this initiative, particularly if returnees bring back skills in digital marketing, e-commerce, or agribusiness—areas where Algeria seeks to diversify its economy.
Key takeaway for entrepreneurs
💡 Starting a business in Algeria? GlobalStart guides you step by step: procedures, real costs, company forms (SARL, EURL, SPA) and CNRC registration.