Weekly trends
Energy and diplomacy: Europe’s alternatives, Sonatrach’s challenges
A French arrest warrant for an Algerian diplomat linked to Sonatrach raised questions about functional immunity. The warrant relates to a 2013 corruption case involving a €200 million contract. Sonatrach denied wrongdoing. The case follows a 2023 French court ruling that dismissed a similar warrant against a former Sonatrach CEO.
Algeria’s crude oil production averaged 930,000 barrels per day in Q1 2024, below its OPEC quota of 990,000. The shortfall reflects aging infrastructure and reduced investment. Sonatrach plans to invest $40 billion by 2027 to boost output.
Spain-Algeria relations improved after a 2022 diplomatic rupture over Western Sahara. In March 2024, Spain’s foreign minister visited Algiers to discuss energy cooperation. Algeria supplies 25% of Spain’s gas imports. Trade between the two countries reached €7.2 billion in 2023, up 12% from 2022.
Tourism and security: digital visas, warnings, and dissent
The UK issued a travel warning in May 2024 after two suicide bombings in Tamanrasset and Ouargla. No group claimed responsibility. Algeria’s counter-terrorism law, amended in 2021, expanded surveillance powers. The U.S. State Department’s 2023 human rights report described Algeria as a “repressive state” and “terrorism sponsor.”
Hirak activists’ lawyers faced disciplinary proceedings in May 2024. The crackdown follows a 2023 law restricting legal representation in “national security” cases. Over 300 activists remain detained, per Amnesty International.
Real estate and infrastructure: reforms, data, and elections
The 2024 electoral reform extends the president’s term from five to seven years and removes the two-term limit. Parliament approved the changes in March 2024. The next presidential election is scheduled for December 2024.
Algiers Metro’s Line 2 expansion began in April 2024. The €1.2 billion project, funded by China’s Eximbank, will add 10 stations by 2026. Ridership on Line 1 reached 30 million in 2023, up 15% from 2022.
Pharmaceuticals and agriculture: local production, foreign partnerships
A Qatari-German-Algerian hospital project broke ground in April 2024. The $500 million facility in Algiers will have 800 beds. Qatar’s investment arm, QInvest, holds a 40% stake.
Cevital, owned by Algeria’s richest man Issad Rebrab, launched a $600 million sugar beet project in May 2024. The plant in El Tarf will produce 200,000 tons of sugar annually, reducing imports by 30%. Algeria spends $1.5 billion yearly on sugar imports.
Diaspora: visas, returns, and legal pressures
Canada’s visa delays disrupted a British man’s 2024 run across Africa. Algeria’s consulate in Montreal took 90 days to process his visa, double the standard time. Algeria’s foreign ministry attributed delays to “administrative backlogs.”
Algeria repatriated 120 students stranded in Morocco in April 2024. The students, enrolled in Moroccan universities, faced visa denials after Algeria severed diplomatic ties in 2021.
Week’s highlights
Key takeaway for entrepreneurs
Algeria’s e-visa system and real estate reforms reduce entry barriers for foreign investors. Energy and pharmaceuticals offer high-growth opportunities, with Sonatrach and Novo Nordisk leading partnerships. Security risks and visa delays remain operational challenges.
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