Algeria’s new PM reshapes business landscape

Algeria’s recent appointment of Sifi Ghrieb as Prime Minister and the formation of a new government in September 2025 mark a shift with direct implications for entrepreneurs, investors, and the Algerian diaspora. President Abdelmadjid Tebboune’s decision, announced by the Algerian presidency and reported by Arab News and The Media Line, follows months of political recalibration after the 2024 presidential election, which the Atlantic Council described as another unsmooth transfer of power. For business founders, the changes signal both risks and opportunities in a country where the state remains the dominant economic actor.

A government with economic reform credentials

Sifi Ghrieb, a former finance minister and technocrat, brings a background in economic policy to the premiership. His previous role saw him oversee Algeria’s 2023 budget, which included a 15% increase in public investment—reaching 6.5 trillion dinars (approximately $48 billion)—to stimulate non-hydrocarbon sectors. According to APS, the state news agency, Ghrieb’s team prioritized infrastructure projects, including the $3.2 billion East-West Highway expansion and the $1.8 billion Hauts Plateaux railway. For entrepreneurs, this suggests continuity in state-led development but also a potential opening for private-sector partnerships in construction, logistics, and renewable energy.

The new government retains key figures like Industry Minister Ahmed Zeghdar, who has pushed for local manufacturing incentives, including tax breaks for startups in the pharmaceutical and agri-food sectors. In 2024, Algeria’s pharmaceutical market grew by 8%, reaching $3.5 billion, per Oxford Business Group, with local production covering 60% of domestic demand—up from 30% in 2019. Zeghdar’s retention may reassure investors eyeing Algeria’s 45 million-strong consumer market, though bureaucratic hurdles remain a persistent complaint.

Hydrocarbons and the army’s economic role

The Algerian army’s influence over the economy remains a critical factor for entrepreneurs. While the military’s formal role in politics has receded since the 2019 Hirak protests, its economic footprint persists through entities like the Direction des Œuvres Sociales des Armées (DOSA), which controls construction, agriculture, and even retail ventures. Recent leadership changes in the army, including the detention of a high-ranking general in 2020 (The Arab Weekly), hint at internal audits, but no structural reforms have been announced to reduce the military’s commercial dominance.

For private businesses, this means competition with state-linked firms in sectors like real estate and food processing. The army’s Société Nationale des Véhicules Industriels (SNVI), for example, produces trucks and buses, benefiting from government contracts that private manufacturers struggle to access. However, the new government’s focus on diversifying the economy—Algeria’s non-hydrocarbon exports rose to $7.2 billion in 2024, up from $5.1 billion in 2022 (Algerian Customs)—could create space for private players in textiles, IT, and green energy.

Diaspora engagement and investment incentives

The Tebboune administration has sought to court the Algerian diaspora, which remitted $2.1 billion in 2023 (World Bank), a 12% increase from 2022. In 2024, the government introduced a “Diaspora Investment Law” offering tax exemptions for returnees starting businesses in priority sectors like tourism and digital services. The new PM’s team includes diaspora affairs advisor Samir Chaabna, a former London-based economist, signaling a push to streamline bureaucracy for overseas investors.

Yet challenges persist. The Banque d’Algérie reported that foreign direct investment (FDI) fell to $1.2 billion in 2023, down from $1.8 billion in 2019, partly due to restrictions on capital repatriation. Entrepreneurs in the diaspora cite inconsistent enforcement of contracts and slow approvals for joint ventures as key obstacles. The new government’s pledge to digitize business registration—currently a 30-day process, per Doing Business 2020—could improve the climate if implemented.

Risks and sector-specific opportunities

The government’s 2025-2027 economic plan, leaked to El Watan, targets 4% annual GDP growth, driven by agriculture (Algeria imports $10 billion in food annually) and renewable energy. The state aims to produce 15,000 megawatts of solar energy by 2030, up from 400 MW in 2024, creating opportunities for private firms in panel manufacturing and grid integration. However, the plan’s reliance on public spending—Algeria’s budget deficit reached 12% of GDP in 2024 (IMF)—raises concerns about fiscal sustainability.

For startups, the Agence Nationale de Soutien à l’Emploi des Jeunes (ANSEJ) continues to offer low-interest loans, with 12,000 new businesses funded in 2024, up from 8,000 in 2022. The digital sector, though nascent, is growing: Algeria’s e-commerce market hit $1.5 billion in 2024 (Statista), with platforms like Yassir (ride-hailing) and Temtem (food delivery) expanding. Yet internet penetration remains at 65%, limiting scalability for tech entrepreneurs.

Key takeaway for entrepreneurs
Algeria’s new government under Sifi Ghrieb offers stability for state-backed projects but maintains barriers for private competition. Entrepreneurs should focus on sectors with clear government incentives—agri-tech, renewables, and local manufacturing—while leveraging diaspora networks for capital and expertise. The army’s economic role remains a wildcard, but the push for non-hydrocarbon growth could open doors for those navigating the bureaucracy.