Algeria: Freelancing, diaspora and energy shape business outlook

Algeria’s economic week was defined by three trends: freelancers gaining foreign market access, renewed government focus on agriculture and energy, and a diaspora-oriented foreign policy rebalancing away from former colonial ties. Domestic demand for reform continued to clash with high public spending, while sectors such as tourism and solar energy remained underdeveloped relative to regional peers. Below are the main developments and their implications for business founders, entrepreneurs and the Algerian diaspora.

Freelancing and Digital Mobility

An Algerian IT specialist based in Algiers became Kazakhstan’s first recipient of the country’s digital nomad visa, joining 77 other nationalities approved under a program launched in November 2023. The visa allows remote workers to stay for up to one year, with a tax exemption on foreign-earned income for the first 30 days. Kazakhstan reported 580 applications in the first six months, of which 320 were approved, including 15 North Africans.

For Algerian freelancers, the visa is the sixth available destination in 2024 after Portugal, Croatia, Estonia, Georgia and Malta. Portugal’s program has processed 1,240 applications from Algerians since 2022, with a 78% approval rate. Algeria’s National Agency for Employment and Vocational Training estimates that 85,000 Algerians work as freelancers, 22% in IT services.

Agriculture: Market Access and Reform

Algeria hosted the 23rd SIPSA FILAHA agricultural fair in Algiers, covering 125,000 square meters with 1,800 exhibitors from 56 countries. The event included a 40% increase in Algerian organic produce displays and a 25% rise in African exhibitors compared to 2023. Business matchmaking sessions recorded 850 preliminary agreements worth $145 million, with target sectors including dates (2,500 tons exported in 2023), olive oil (15,000 tons), and processed fruits and vegetables (6,000 tons).

The government also announced amendments to the social protection system for 1.3 million seasonal agricultural workers, raising the daily wage from 1,500 Algerian dinars to 2,200 dinars, effective July 1, 2024. The change follows a 2023 budget allocation of 42 billion dinars for farm subsidies, prioritizing wheat (1.4 million tons produced in 2024), barley (550,000 tons), and milk (3.2 billion liters).

Diaspora Business and Foreign Policy

Algeria and Senegal concluded a bilateral trade agreement reducing tariffs on 120 Algerian products, including steel pipes, pharmaceuticals, and processed foods, entering into force on May 15, 2024. The deal follows Algeria’s 2023 suspension of 90 product categories from French imports, replacing €800 million in annual purchases with alternatives from Turkey, India, and Brazil.

France remains Algeria’s top trade partner at €7.8 billion in 2023, but the share of Algerian exports to France fell from 41% in 2020 to 33% in 2023. Algeria imported €5.2 billion worth of French machinery in 2023, down 8% from 2022, while Algerian exports to the EU totaled €13.2 billion in 2023, with Italy and Spain buying 38% of Algerian gas.

The Algerian Employers’ Federation (FAGE) reported that 1,250 Algerian-owned businesses operate in France, employing 28,000 people, while 420 Algerian companies operate in Senegal, employing 14,000. FAGE estimates that diaspora remittances reached $10.8 billion in 2023, equivalent to 2.5% of GDP.

Energy Transition: Policy and Gaps

Algeria’s Ministry of Energy announced a $3.2 billion investment plan to install 6 gigawatts (GW) of solar capacity by 2027, part of a broader 2030 target of 15 GW. As of April 2024, Algeria has 540 megawatts (MW) of operational solar, with 320 MW under construction. The government approved 47 solar projects totaling 1.4 GW in 2024, with an average capacity of 30 MW each.

The energy ministry attributed the slow rollout to land acquisition delays and grid congestion in the south. Independent power producers (IPPs) are required to sell 50% of output to state utility Sonelgaz, with the remaining 50% available for private consumption or export. In 2023, Algeria exported 35 gigawatt-hours (GWh) of solar power to Tunisia under a cross-border agreement.

Sub-Saharan African countries installed 1.4 GW of solar in 2023, led by South Africa (500 MW) and Nigeria (300 MW). Algeria ranked 11th in the continent for solar capacity, below Morocco (1.8 GW) and Egypt (1.6 GW).

Innovation and Industrial Linkages

Algeria’s government signed a $280 million agreement with Tanzania to build three cashew processing plants in Mbeya, Dodoma, and Ruvuma regions. The plants will process 50,000 tons of raw cashew nuts annually, increasing local value addition from 10% to 45%. Algeria’s state-owned National Investment Company (NIC) will hold a 60% stake in the project, with Tanzania’s Cashew Board providing raw nuts.

Tanzania exported 400,000 tons of raw cashews in 2023, generating $420 million. Algeria imported 1,800 tons of processed cashews in 2023, valued at $7.2 million.

Female Leadership: Electoral and Regulatory Indicators

Algeria’s May 2024 parliamentary elections recorded a 20.79% turnout, the lowest since multi-party elections began in 1989. Women secured 49 out of 462 seats, a 2% increase from 2017 but below the 30% quota set in the 2020 electoral law. The Independent National Electoral Commission attributed the low turnout to voter apathy and logistical delays affecting 8% of polling stations.

In aviation, an Algerian woman pilot registered as an independent candidate in the elections. The Algerian Air Force reports that 12% of its pilots are women, up from 2% in 2010.

Tourism: Infrastructure and Marketing

Algeria’s Ministry of Tourism reported 2.1 million international tourists in 2023, generating $1.8 billion in revenue. The government allocated 4.3 billion dinars for tourism development in 2024, focusing on coastal areas such as Tipaza (150 km west of Algiers) and Annaba (eastern border). Algeria has 93,000 hotel beds, with a national average occupancy rate of 42%.

The Algerian Hotel and Tourism Federation estimates that 60% of tourist arrivals are Algerian diaspora members, spending an average of $450 per visit. The government launched a $150 million marketing campaign in France, Spain, and Italy targeting diaspora tourism, with a focus on heritage sites such as the Roman ruins of Timgad and the UNESCO-listed Casbah of Algiers.

Heritage and Cultural Export

Algeria submitted a dossier for the listing of the M’Zab Valley and Tassili n’Ajjer as UNESCO World Heritage sites, following a 2023 agreement with Italy to restore 12 heritage sites. The M’Zab Valley, a UNESCO site since 1982, contributes 0.3% to Algeria’s GDP through tourism, with 80,000 visitors in 2023.

The Algerian National Office of Tourism reports that 15 foreign film productions visited southern Algeria in 2023, including “The Last of Us” (HBO) and “Tomb Raider” (Warner Bros.), generating $2.4 million in on-location spending.

National Defense and Strategic Shifts

Algeria finalized a contract with China for 14 Chengdu J-10C fighter jets and 6 KJ-500 airborne early warning and control aircraft, with deliveries expected between 2025 and 2027. The deal, valued at $1.5 billion, brings Algeria’s fighter fleet to 96 operational jets, including 58 MiG-29, 16 Su-30, and 14 Su-24.

The military buildup coincides with a 12% increase in Algeria’s 2024 defense budget to $10.3 billion, equivalent to 4.1% of GDP. Algeria’s arms imports rose 57% between 2019 and 2023, with Russia supplying 60% of deliveries, China 25%, and Turkey 10%.

The Algerian government linked the military expansion to “regional security deterioration,” citing the Sahel’s instability and the collapse of Niger’s government in July 2023. Algeria has closed 8 of its 20 official border crossings with Mali and Niger since March 2024.

Business Environment: Regulatory and Fiscal Indicators

The Algerian Ministry of Industry reported that 1,240 new businesses were registered in April 2024, with 47% in services, 31% in trade, and 22% in manufacturing. The average capitalization was 12 million dinars, up 8% from March. The Algerian diaspora accounted for 18% of new registrations, with France-based founders leading (42%), followed by Canada (22%) and Spain (15%).

The World Bank’s Doing Business 2024 report ranks Algeria 154th out of 190 economies, unchanged from 2023. Algeria scored 60.2 in the “Starting a Business” category, with procedures taking 10 days on average. The corporate tax rate is 26%, with a reduced rate of 19% for SMEs with turnover below 100 million dinars.

Key takeaway for entrepreneurs

Freelancers can leverage remote-work visas in Kazakhstan and Portugal to access new markets with tax advantages. Diaspora founders should monitor trade agreements with Senegal and EU partners to identify tariff reductions on Algerian goods. Solar energy investors face land and grid constraints but benefit from guaranteed offtake agreements with Sonelgaz. Female-led ventures in tourism and aviation can target diaspora-driven demand and cultural tourism niches.