Algeria’s week—energy deals, rights crackdowns, youth jobs

Energy and industry: Sonatrach, pipelines, and local manufacturing

In Berlin, Algerian conglomerate Condor, owned by billionaire Abderrahmane Benhamadi, signed a deal with a German firm to manufacture pipes. Condor’s revenue reached $1.2 billion in 2023, with 60% from electronics and 20% from industrial equipment. The pipe deal targets European infrastructure markets, where demand for non-Russian supply chains persists. Condor’s expansion follows Stellantis’s second international suppliers convention in Oran, where the automaker announced plans to localize 40% of its North African production by 2026. Stellantis currently assembles 100,000 vehicles annually in Algeria, but a nationwide car shortage—driven by import restrictions and currency controls—has left dealerships with waiting lists exceeding 18 months.

Algeria’s average US tariff rate stands at 4.5%, unchanged since 2022. The figure is below the global average of 6.8% but higher than Morocco’s 3.2%. Tariffs on agricultural products, including nettles—studied in a recent paper for their phenolic content—remain at 15%. The study, published in Food Chemistry, identifies Urtica pilulifera and Urtica urens as potential exports for pharmaceutical and cosmetic industries. No Algerian company currently processes nettles at scale.

Diaspora and diplomatic tensions: soccer, security, and trade

Diplomatic relations with Spain have stabilized after a 2022 rupture over Western Sahara. Spain’s imports of Algerian gas rose 12% in Q1 2024, reaching 8.2 billion cubic meters. Algeria now supplies 25% of Spain’s gas, up from 18% in 2022. The shift coincides with Europe’s search for alternatives to Russian energy. Algeria’s total gas exports to Europe hit 56 billion cubic meters in 2023, a 7% increase year-on-year. Sonatrach’s CEO, Rachid Hachichi, stated in April that Algeria could increase exports by 10% annually if new fields in the Berkine Basin come online by 2026.

Morocco-Algeria rivalry continues to reshape North Africa’s geopolitical landscape. Algeria’s foreign ministry accused Morocco of lobbying against Algerian energy projects in Europe, citing delays in a proposed gas pipeline to Italy. The pipeline, with a planned capacity of 10 billion cubic meters per year, remains under review by the European Commission. Algeria’s foreign policy emphasizes “strategic autonomy,” including deepening ties with Iran and Turkey. In May, Algeria welcomed a US-Iran agreement to de-escalate military operations in the Gulf, positioning itself as a mediator in regional conflicts.

Civil society and human rights: crackdowns, deportations, and labor

A Tunisian-Algerian refugee was abducted in Tunisia and forcibly returned to Algeria in April. The incident, documented by Amnesty International, marks the third such case in 2024. Algeria’s deportation of activist Nassera Dutour—co-founder of the Collective of Families of the Disappeared in Algeria—drew condemnation from 47 human rights organizations. Dutour, a French-Algerian dual citizen, was barred from entering Algeria in March after attending a conference in Paris.

Wildfires in northern Algeria destroyed 12,000 hectares of forest in May. Civil Protection teams extinguished 147 of 193 active fires by May 23. The government allocated $45 million for relief efforts, including psychosocial support for 5,000 affected families. No economic impact assessments have been released, but agricultural losses in Tizi Ouzou and Béjaïa provinces are expected to exceed $20 million.

Youth employment: policies, precarity, and digital shifts

A study by the Algerian Center for Economic Research found that 70% of young Algerians in informal work lack social security coverage. The informal sector accounts for 30% of GDP, per the World Bank. The government’s 2024 budget includes $800 million for vocational training, with a focus on renewable energy and construction. No data exists on how many trainees secure formal jobs post-program.

Medical research and trade: nettles, tariffs, and export gaps

Algeria’s average US tariff rate of 4.5% applies to 85% of its exports, including hydrocarbons, fertilizers, and textiles. The remaining 15% face rates up to 35%, particularly for agricultural products. Algeria’s non-hydrocarbon exports to the US reached $120 million in 2023, up from $95 million in 2022. The increase is driven by phosphate exports, which rose 40% year-on-year.

Balance of the week

Key takeaway for entrepreneurs
Algeria’s car shortage and Stellantis’s localization push create opportunities in auto parts manufacturing. Condor’s German pipe deal demonstrates potential in industrial exports. Diaspora remittances remain volatile but offer a funding source for startups. Tariffs and informal labor limit growth in agriculture and digital sectors.