Algeria: New oil round, SME push and diaspora ties

Business plans: Industrial consortia emerge, oil licensing cycle opens

Egypt’s El-Sewedy family, through its conglomerate Elsewedy Electric, is advancing plans to expand its Cameroonian operations as part of a broader industrial consortium expected to include Algerian partners. The initiative is linked to a new Algeria-Egypt platform targeting sectoral cooperation in energy infrastructure and industrial parks. The consortium is not yet operational but has entered preliminary feasibility discussions with Algerian state agencies including Sonatrach and the Ministry of Industry.

Spain’s Invest in Spain published a report on 12 June outlining 19 priority sectors for Spanish firms in Algeria, led by renewable energy equipment, water treatment technologies and agri-food processing machinery. The document cites Algeria’s import substitution plans and the 2026 oil and gas licensing round as key drivers for potential engagements.

Algeria officially launched the 2026 Oil and Gas Licensing Round on 13 June. The round will include 12 blocks across five basins: Timimoun, Ahnet, Reggane, Berkine and Illizi. Sonatrach will operate as the state partner in all contracts. The Ministry of Energy and Mines published tender documents on its website on 14 June. Bidding closes on 31 December 2026, with first exploration licenses expected by mid-2027. No reserve figures have been disclosed.

SMEs: Regional trade fair and policy signals

Twenty Togolese SMEs attended the African Trade Fair in Algiers from 9 to 11 June, showcasing products in cosmetics, textiles and processed foods. The delegation was supported by Togo’s Ministry of Trade and the African Export-Import Bank (Afreximbank). Algerian importers reported negotiations for 32 new supply contracts valued at USD 1.8 million.

Mustapha Ferfera, Director of the Bourse d’Alger, confirmed in a 10 June interview that 38 SMEs raised a total of DZD 1.4 billion (USD 10.2 million) via the Algerian SME equity market in the first five months of 2025. The market has listed 118 SMEs since launch in 2020, with a combined market capitalization of DZD 42 billion (USD 309 million).

Former Minister of Land Management and Environment Cherif Rahmani announced plans to launch an SME acceleration program focused on green construction and urban recycling. The program will be managed through the National Agency for the Promotion of SMEs (ANPME) and supported by the World Bank’s USD 200 million “Green Cities” initiative in Algeria.

Business creation: Digital 2026 plan details

The Ministry of Digital Economy published the Digital 2026 action plan on 12 June, setting targets for 2026 including the creation of 500,000 digital jobs, the launch of 10 new tech parks and the training of 250,000 ICT specialists. The plan allocates DZD 90 billion (USD 660 million) in public investment, with private co-financing expected to reach DZD 180 billion (USD 1.3 billion). Priority sectors include fintech, cybersecurity and e-government services.

Company law: Press freedom and legal updates

ARTICLE 19, the UK-based media rights group, issued a statement on 11 June calling on Algerian authorities to uphold press freedom and protect independent journalism following the recent arrests of three journalists covering labor strikes in Ouargla. The statement cited Algeria’s Penal Code articles 146 bis and 196, which criminalize defamation and the dissemination of “false information.”

No amendments to the commercial code were announced this week, but the Ministry of Commerce confirmed that draft amendments to simplify business registration are in final review and expected for public consultation in July 2025.

Algerian Community France: Summer mobility, bilateral talks

The third and final group of 1,200 young Algerians from France arrived in Algiers on 14 June under the annual summer camps program organized by the National Office for Youth and Community Abroad (ONAJEC). The program runs from 10 June to 20 August and includes vocational workshops in automotive repair, renewable energy and digital skills.

Algerian and Russian officials met in Moscow on 11 June to discuss bilateral cooperation in energy, agriculture and industrial projects. A joint statement confirmed the creation of a working group to assess the feasibility of joint ventures in fertilizer production and railway logistics.

Algeria and China signed a memorandum in Annaba on 13 June to expand the Annaba Port dredging project and the phosphate terminal. The project is valued at USD 120 million, with financing split between Algeria’s state budget and a USD 95 million loan from China Exim Bank.

Civil society: Union activity intensifies

Independent unions in health and education sectors held coordinated press conferences on 9 and 10 June protesting wage delays and staff shortages. The unions represent 18,000 health workers and 35,000 teachers across 14 governorates. No strike dates have been announced.

Algerian youth: Job market signals and identity politics

Algeria’s military chief stated on 8 June that “no foreign power” would be allowed to exploit Berber identity politics to destabilize the country. The statement followed protests in Kabylie over the exclusion of Tamazight from the national census form. Tamazight was made an official language in 2016 but remains excluded from official identification documents.

The International Monetary Fund’s Article IV consultation report, published on 12 June, noted that Algeria’s unemployment rate fell to 10.2% in Q1 2025 from 12.7% in Q4 2024, attributing the drop to temporary public sector hiring and the “easy money” credit expansion policy. Inflation measured 3.8% year-on-year in May 2025, down from 5.1% in December 2024.

Counterterrorism: AQIM presence and regional ties

Al-Qaeda in the Islamic Maghreb (AQIM) remained active in the Sahel this week, with no confirmed operations in Algerian territory. The group’s regional networks are reported to maintain supply routes through southern Algeria into Mali and Niger.

Algerian authorities denied claims by a US-based analyst on 12 June that Algeria serves as a safe haven for terrorist organizations allied with Iran. The Ministry of Foreign Affairs stated that Algeria has not granted sanctuary to any armed group and maintains active counterterrorism cooperation with regional and international partners.

Human rights: International role and legal developments

Algeria was elected on 11 June as president of the United Nations Human Rights Council for the 2025–2026 term. The presidency rotates by regional group; Algeria represents the African Group. The election was uncontested.

French-Algerian writer Boualem Sansal was released from prison on 13 June after receiving a presidential pardon. Sansal, 74, was sentenced to one year in 2024 on charges of “undermining national unity” for criticizing government policies in public speeches.

Environment: Energy transition and emissions cooperation

Eni and Sonatrach expanded their cooperation agreement on 10 June to include methane emissions reduction and carbon capture pilot projects at the Hassi R’Mel and Alrar gas fields. The companies will invest USD 45 million over three years, targeting a 30% reduction in flaring and venting by 2028. Eni operates the fields under a production-sharing contract signed in 2023.

A report by the International Energy Agency (IEA) published on 11 June highlighted Algeria’s potential as a wind energy exporter to Europe via the Euro-African electricity link. Algeria’s technical wind potential is estimated at 35 GW, but only 420 MW are currently installed.

Balance of the week

This week’s developments centered on three axes: energy licensing expansion, SME and youth employment initiatives, and strengthened international ties with Spain, Egypt, Russia and China. The 2026 oil and gas round signals a new cycle for foreign investors, while Digital 2026 outlines concrete job and investment targets. The presence of Togolese SMEs at the Algerian trade fair indicates ongoing regional integration. The release of Boualem Sansal and Algeria’s election to the UN Human Rights Council reflect shifts in domestic and international legal environments. The Berber identity debate and AQIM’s regional activity remain long-term social and security considerations.

Key takeaway for entrepreneurs: The 2026 oil and gas licensing round offers a clear timeline for foreign energy investors, while Digital 2026 provides quantified job and funding targets for tech founders. SMEs can explore regional trade opportunities at upcoming fairs, and diaspora-linked ventures should note summer mobility programs for talent scouting.