Weekly trends: investment push, energy expansion, and diplomatic recalibration
Algeria courts investors amid skepticism
State-owned MADAR, Algeria’s food import and distribution agency, announced plans to import bananas and coffee from Cameroon and explore investment opportunities there. The move aligns with Algeria’s strategy to diversify food supply chains amid rising domestic demand. Cameroon’s banana exports totaled 350,000 tons in 2023, with Algeria as a potential new market.
Issad Rebrab’s Cevital launched a $600 million sugar beet project in Sidi Bel Abbès, aiming to reduce Algeria’s sugar import bill. The country imports 1.2 million tons of sugar annually, costing $600–700 million. The project targets 500,000 tons of local production by 2026.
Energy and infrastructure: pipelines, solar, and urban projects
Algeria aims to install 15 GW of solar capacity by 2035, up from 400 MW currently. The government allocated $3.6 billion for renewable energy projects in 2024, with tenders for 1 GW of solar capacity expected by year-end. The 51/49 rule does not apply to renewable energy projects, attracting foreign firms like France’s TotalEnergies and Italy’s Eni.
Urban infrastructure projects resumed after delays. The Algiers Metro’s Line 1 extension, halted since 2020, restarted construction. The $1.2 billion project will add 9.5 km and 10 stations by 2026. Tramway networks in Oran and Constantine also advanced, with $800 million allocated for expansions in 2024.
Diplomacy: France tensions, Sahel shifts, and reconciliation efforts
Macron’s final attempt at reconciliation with Algeria included opening classified Algerian War archives 15 years ahead of schedule. The archives cover 1954–1962, including records of French military operations and chemical warfare allegations. Algeria’s National Archives received 280,000 declassified documents, with another 600,000 expected by 2025. The move aims to address historical grievances but has not eased trade tensions. Franco-Algerian trade fell 12% in 2023 to $8.2 billion, down from $9.3 billion in 2022.
Algeria’s non-intervention policy in the Sahel faced pressure as Mali accused it of supporting armed groups. Algeria denied the claims but increased border security, deploying 5,000 additional troops to its southern frontier. The standoff reflects Algeria’s balancing act: maintaining stability in Niger and Libya while avoiding direct involvement in regional conflicts.
Economic ties with Sub-Saharan Africa expand
Trade with Sub-Saharan Africa remains limited, accounting for 2% of Algeria’s total exports. The government aims to increase this to 10% by 2030, targeting markets in Senegal, Côte d’Ivoire, and Tanzania. Algeria’s exports to Tanzania grew 30% in 2023, driven by pharmaceuticals and construction materials.
Tourism and archaeology gain traction
Archaeological research advanced with new dating techniques applied to Roman sites. A study of lime mortar from Hippo (Annaba) provided insights into construction methods used in the 2nd–5th centuries. Timgad, a UNESCO-listed Roman city, saw increased preservation funding, with $5 million allocated for restoration in 2024.
Elections and youth engagement
Weekly highlights
Key takeaway for entrepreneurs
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