Algeria’s policy actions this week centered on three axes: tightening fiscal controls via the 2025 Finance Law, recalibrating regional diplomacy with France and Morocco, and accelerating infrastructure financing. The government approved an $878 million loan from the African Development Bank for the trans-Saharan railway, while the 2025 Finance Law introduced new tax measures for corporations. On the diplomatic front, Algeria moved to renew ties with France and address tensions with Morocco. Food security remains a focus as hydrological extremes force new water-management strategies, and housing policy continues to draw scrutiny amid budget constraints.
Policy and fiscal signals for business
The government maintained its stance of avoiding austerity measures, citing oil revenues of $38.7 billion in the first half of 2024, up 8.2% year-on-year. Public debt stands at 45.3% of GDP, according to the Ministry of Finance. The budget deficit for 2024 is projected at 6.1% of GDP, unchanged from 2023.
Infrastructure push gathers pace
Separately, Algeria secured a $150 million loan from the Arab Fund for Economic and Social Development for the upgrade of the Algiers-Blida highway, part of a wider 1,500 km national expressway network. Completion is scheduled for 2027.
Diplomatic recalibration: France and Morocco
In parallel, Algeria renewed its call for a return to dialogue with Morocco after months of frozen relations. Morocco’s foreign minister stated that Algeria had “folded” its previous positions, though no formal agreements were announced. Bilateral trade fell to $120 million in 2023, down from $1.2 billion in 2021.
Housing and social policy under pressure
The UNDP launched a call for proposals worth $1.5 million to support community-based environmental initiatives in Algeria, targeting water conservation and waste management in rural areas. The program will run until June 2025.
Food security and water stress
Agricultural output in 2024 is projected to fall 7% year-on-year due to drought, with wheat production at 3.1 million tons, down from 3.3 million in 2023. Imports of cereals reached 7.8 million tons in the first nine months of 2024, up 12% from the same period last year.
Tourism potential highlighted amid weak performance
Separately, National Geographic published images from a 2,500 km Sahara road trip, though it did not include Algeria in the route.
Diaspora and repression concerns
Regional contrasts in heritage and policy
The Algerian government also approved a DZD 20 billion (€140 million) plan to restore Ottoman-era landmarks, including Villa Boulkine in Algiers.
Balance of the week
Key takeaway for entrepreneurs
Algeria’s 2025 Finance Law raises tax burdens on dividends and large corporations, while maintaining incentives for renewables until 2030. Infrastructure financing is accelerating, with $1 billion-plus secured for rail and highways. The diplomatic recalibration with France and Morocco may ease trade friction, but policy stability remains uneven. Priority sectors for state support remain water, housing and transport.
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