Algeria’s week: markets, health, art and geopolitics

Health and vaccines: A public phase with lingering challenges

Algeria’s vaccination campaign against COVID-19 marked a turning point in 2021. The government launched its rollout through COVAX, securing doses for priority groups. By early 2021, health authorities had begun administering vaccines to frontline workers, the elderly, and high-risk populations. The campaign initially relied on Sinopharm and AstraZeneca, with later deliveries expanding coverage. Yet, public trust remained uneven. Some regions reported hesitancy, while others faced logistical delays in distribution.

The transition to a public phase revealed deeper structural issues. Vaccination centers were set up in major cities, but rural areas lagged behind. The government emphasized mass immunization as a tool for economic recovery, linking health security to business stability. However, the pace of vaccination did not match the urgency of reopening sectors like tourism and manufacturing. By mid-2021, only a fraction of the population had received both doses, leaving vulnerabilities in place.

The health sector’s performance also reflected broader economic constraints. Algeria’s fiscal deficit in 2024 widened to 7.4% of GDP, limiting funds for public health investments. While the state avoided austerity measures to prevent social unrest, the private sector—critical for vaccine distribution—struggled with import bottlenecks. Pharmaceutical imports, including vaccines and medical supplies, faced delays due to currency shortages and banking liquidity crunches. These challenges persisted even as Algeria sought to position itself as a regional hub for health services.

Business climate: Stagnation and the 2025 Finance Law’s limited impact

Algeria’s private sector growth stalled in 2024, expanding by just 1.8%, a fraction of pre-pandemic levels. The slowdown stemmed from two key constraints: restricted access to imports and tight banking liquidity. Businesses reliant on foreign components—particularly in automotive and construction—faced prolonged shortages. The government’s response was cautious. The 2025 Finance Law introduced tax incentives for local manufacturers but avoided deep structural reforms.

The law’s measures were designed to stimulate investment without triggering fiscal strain. Corporate tax rates were adjusted for certain sectors, and subsidies for key industries were extended. Yet, the absence of austerity reflected a deliberate choice. With public debt at 52% of GDP, authorities feared that spending cuts would provoke protests. The Hirak movement, though diminished, had demonstrated the fragility of social stability. The government’s approach thus balanced economic pragmatism with political caution.

For entrepreneurs, the outlook remained mixed. The National Agency for the Promotion of SMEs continued to fund projects like the DZD 850 million (€5.7 million) metal parts factory in Batna. This facility, inaugurated by entrepreneur Sifi Ghrieb, aimed to reduce reliance on imported automotive and construction components. However, such initiatives were exceptions. Most small and medium-sized enterprises (SMEs) operated under persistent uncertainty, hindered by red tape and limited access to financing.

Geopolitics: Maghreb tensions and France’s shifting stance

Algeria’s foreign policy adjustments in 2026 signaled a recalibration amid regional rivalries. The Arab Maghreb Union (AMU), dormant since 2021, showed no signs of revival. Instead, Algeria reviewed bilateral cooperation with Mauritania, signaling a pivot away from stagnant multilateralism. The move came as Morocco pushed forward with a high-stakes energy project: a $26 billion gas pipeline linking Nigerian fields to Europe via Morocco. If completed, the pipeline would bypass Algeria entirely, undermining its role as a transit hub for European gas.

Algerian officials remained silent on the project’s implications. The government’s restraint contrasted with past rhetoric, where energy sovereignty was a cornerstone of national policy. The shift suggested a pragmatic acknowledgment of Morocco’s growing influence in West African energy markets. Meanwhile, tensions with France persisted, despite occasional diplomatic overtures. A leading French historian described the bilateral relationship as at its worst since 1962, citing unresolved colonial grievances and economic disputes.

Security concerns further complicated Algeria’s regional posture. Cross-border crime, particularly migrant smuggling, escalated along the Algeria-Spain frontier. In June 2026, Algerian authorities dismantled a network smuggling migrants, arresting nine individuals. A separate operation in July targeted 18 Moroccan nationals accused of operating an international trafficking ring. These crackdowns reflected Algeria’s dual role: as both a transit country and a reluctant participant in European migration policies.

Culture and industry: Heritage preservation and local manufacturing

Algeria’s cultural and industrial sectors offered glimpses of resilience amid economic constraints. In Batna, entrepreneur Sifi Ghrieb inaugurated a DZD 850 million (€5.7 million) factory producing metal parts through molding technology. The project, partly funded by the National Agency for the Promotion of SMEs, aimed to supply local automotive and construction firms. By reducing reliance on imports, it addressed a critical bottleneck in Algeria’s industrial supply chains.

Heritage preservation, too, saw limited but symbolic progress. A UNDP-funded initiative approved the restoration of a Jewish heritage site in Fez, Morocco, as part of a €1.2 million program targeting five sites across Algeria and Morocco. The project highlighted Algeria’s cultural ties with its neighbors, even as domestic Jewish heritage faced neglect. In Algiers, artist Latifa Boulfoul opened the “Spectrum of Colors” exhibition, showcasing contemporary Algerian art. Such cultural initiatives, while niche, underscored a broader effort to reclaim national identity amid economic hardship.

Universities and protest cycles continued to shape Algeria’s social landscape. The Hirak movement, though weakened, persisted in fragmented forms. Some political prisoners were released in early 2021, but protests over economic grievances and corruption remained common. The government’s response was a mix of repression and selective concessions, ensuring stability without addressing root causes.

Key takeaway for entrepreneurs

Sources

• Stimson Center
• The Libya Observer
• France 24
• Gavi, the Vaccine Alliance
• Ynetnews
• fundsforNGOs