Algeria’s week: energy shifts, climate risks and policy warnings

Headline recap

Food Security & Climate Vulnerability

Demographic data from HESPRESS English showed fertility rates in Algeria at 2.5 children per woman in 2024, down from 3.0 in 2015. The National Office of Statistics (ONS) attributes the decline to rising urbanization and delayed marriages, with projections indicating a fertility rate of 2.1 by 2030. Analysts note that lower fertility reduces the rural labor pool for agriculture, exacerbating food security risks as the population ages.

Hospitals & Economic Management

Algeria’s pharmaceutical sector also faces structural constraints. The Ministry of Pharmaceutical Industry reported that local production covers 45% of domestic demand, with 55% still imported. Public hospitals imported $1.2 billion of medicines in 2023, up 12% from 2022. The Ministry launched a tender process in August 2024 to increase local API (active pharmaceutical ingredient) production, targeting 60% self-sufficiency by 2027.

OPEC & Energy Transition

Sonatrach also faces credibility tests in LNG markets. The company exported 18.2 million tons of LNG in 2023, down 5% from 2022 due to maintenance delays at Skikda and Arzew plants. Algeria’s LNG utilization rate stood at 78% in Q2 2024, below the industry benchmark of 85%. Market analysts cited in APAnews note that Algeria’s aging infrastructure and limited new investment risk further erosion of market share.

Real Estate & Trade Flows

On 18 September, Algeria’s Ministry of Commerce issued a tender for 50,000 metric tons of soft milling wheat, with delivery scheduled for November 2024. The contract is valued at $22 million at current prices of $440/ton FOB Algerian ports. The tender follows a 9% increase in wheat imports in 2023, reaching 7.8 million tons, as domestic production fell to 3.2 million tons due to drought.

Sport: Athletes, Clubs and Policy Shifts

In club football, Algeria’s Ministry of Youth and Sports banned domestic clubs from signing foreign players for the 2024–25 season. The decision, effective 10 September, cited budget constraints and the need to prioritize youth development. RB Leipzig denied reports on 16 September that Algerian forward Mohamed Amoura was close to a transfer. At the same time, Libyan club Al-Ittihad Tripoli announced an agreement in principle with South African manager Rulani Mokwena, who had been linked to MC Alger.

Water Security & Infrastructure

NAPAC 2025, Algeria’s National Water Plan, will allocate $4.2 billion to desalination by 2027. The program aligns with Algeria’s 2030 water security strategy, which aims to cover 65% of municipal demand through desalination, up from 30% in 2024.

Counterterrorism & Security

Transport & Mobility

Diaspora: Business & Investment

Algerian-Canadian business networks in Montreal and Toronto reported a 15% increase in remittances in H1 2024, reaching $720 million. The funds are primarily directed toward real estate (42%), education (28%) and small business startups (18%).

Balance of the week

Key takeaway for entrepreneurs
Algeria’s policy signals favor import substitution in pharmaceuticals, local content in energy and desalination infrastructure. Foreign investors in agribusiness, construction materials and renewable energy components should monitor tenders in the Vietnam trade corridor and Sonatrach’s BOO desalination program. The ban on foreign footballers may reduce short-term player costs for clubs but increases reliance on youth academies.

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