Algeria’s week saw geopolitical moves—airspace closures and Maghreb trade data—coincide with business announcements including a $600 million sugar project and a $455 million farming deal. Diplomatic overtures toward Tunisia and France ran alongside renewed inflation pressure on cereals, while housing policy remained a drag on labor mobility and entrepreneurship.
Regional trade and diplomatic friction
The Arab Maghreb Union reported a 42 percent rise in Algeria–Tunisia trade over three years, with bilateral volume reaching USD 290 million in 2023 according to Algerian Foreign Minister Ahmed Attaf. President Abdelmadjid Tebboune reaffirmed Algeria’s support for Tunisia against unspecified threats, signaling closer commercial alignment.
At the same time, Algeria restricted airspace access for Moroccan and Emirati carriers in successive moves. Morocco’s national airline RAM canceled 32 flights between 27 September and 1 October due to Algerian restrictions; Emirates suspended flights to Algiers on 29 September. Analysts cite the Western Sahara dispute as the trigger for both restrictions.
Business announcements and investment flows
Cevital, controlled by billionaire Issad Rebrab, announced a USD 600 million sugar beet project in Mostaganem Province, aimed at reducing Algeria’s USD 1.2 billion annual sugar import bill. The five-year plan covers 20,000 hectares of arable land and will supply three new processing plants.
On cereals, Algeria’s 2024/25 wheat harvest is now projected at 3.2 million tonnes—down from an earlier 3.7 million tonnes—due to drought, according to the Ministry of Agriculture. This reduces import requirements to an estimated 5.5 million tonnes, up from 4.8 million tonnes in 2023. Meanwhile, Kenya secured a USD 120 million deal to export 350,000 head of sheep to Algeria ahead of Eid al-Adha, replacing traditional Australian and Romanian supplies hit by shipping costs and quotas.
Italian agribusiness group Bonifiche Ferraresi signed a USD 455 million contract for a 25,000-hectare farming project in El Oued Province, focused on date palm cultivation and renewable energy supply. The 25-year lease includes USD 110 million in local co-financing and targets export markets in Europe and West Africa.
Housing and labor market constraints
Algeria’s public housing program delivered 130,000 units in 2023, still short of the 200,000 annual target set by the 2020–2024 five-year plan. The backlog keeps urban rental prices elevated in Algiers and Oran, averaging DZD 45,000 per square meter in new developments. A return visit to the affordable housing complex in Boumerdès showed 65 percent occupancy due to mortgage delays and construction quality issues.
The housing shortage continues to limit labor mobility: only 14 percent of Algerian workers relocated for jobs in 2023, according to the National Office of Statistics.
Gender and economic participation
The Ministry of National Solidarity reported that women accounted for 18 percent of registered entrepreneurs in 2023, up from 14 percent in 2020. Female-led ventures remain concentrated in retail and services; manufacturing and agribusiness account for less than 6 percent of women-owned firms. The gender pay gap in the formal sector stands at 22 percent, unchanged since 2021.
France–Algeria relations
French President Emmanuel Macron made a last-minute offer to Algeria to reopen migration talks and ease visa access for Algerian students and professionals. Algeria did not issue an immediate response. Analysts note France’s recent shift on Western Sahara as a key irritant: Algeria recalled its ambassador to Paris in August for consultations after Macron described Morocco’s autonomy plan for Western Sahara as “credible.”
Food security and rural policy
The Ministry of Water Resources launched a USD 380 million program to expand irrigation in the Sahara, targeting 50,000 hectares over five years. Projects include solar-powered desalination plants in Adrar and Tamanrasset Provinces. Separate funding of USD 95 million will be allocated for date palm rehabilitation in the M’zab Valley, aiming to raise annual production to 550,000 tonnes by 2027.
Scientific research and tourism
The Ministry of Higher Education cited a 7 percent increase in research funding for 2024, reaching DZD 22 billion. Priority areas include solar energy, water desalination and cereal genetics. Tourism arrivals reached 3.1 million in the first eight months of 2024, up 11 percent year-on-year, driven by European visitors despite airspace restrictions.
Balance of the week
– Trade: Algeria–Tunisia trade up 42 percent since 2021; Morocco and UAE airspace restrictions in place.
– Investment: Cevital’s USD 600 million sugar project; Italian firm’s USD 455 million El Oued agribusiness deal.
– Cereals: Wheat harvest cut to 3.2 million tonnes; Kenya to supply 350,000 sheep.
– Housing: 130,000 units delivered in 2023; rental prices remain high.
– Gender: Women make up 18 percent of entrepreneurs; pay gap unchanged.
– Diplomacy: Macron’s reconciliation offer; Algeria silent on response.
– Food security: USD 380 million Sahara irrigation program; date palm rehabilitation funded.
Key takeaway for entrepreneurs
Algeria’s policy pivot toward self-sufficiency in sugar and cereals creates procurement windows for domestic suppliers. Airspace restrictions with Morocco and the UAE increase freight costs for imports from those markets. Housing bottlenecks persist, raising operational costs in major cities. Female entrepreneurs face persistent financing gaps in scaling manufacturing ventures.
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