Recap: Five trends in seven days
Housing: State programs fail to close the gap
The state subsidizes social housing at DZD 3.5 million per unit (≈$25,500). Market-rate apartments in Algiers start at DZD 12 million (≈$87,500). Rental yields in the capital average 5.2% annually, down from 6.8% in 2020.
Energy: Hydrocarbons fund the budget, but transition debates stall
The government’s 2023 energy transition plan sets a 30% renewable energy target by 2030. Current installed capacity is 500 MW, 1.5% of total electricity production. Private investment in solar and wind remains below $200 million annually. Entrepreneurs cite regulatory uncertainty and grid connection delays as obstacles. The average solar project approval takes 24 months.
Sonatrach’s 2024–2028 investment plan allocates $40 billion to upstream and downstream projects. No public-private partnerships (PPPs) have been announced for renewable energy.
Labor and training: Skills mismatch persists
Unemployment stands at 11.6%, with youth unemployment at 28.5%. The informal sector employs 45% of the workforce. Entrepreneurs report difficulties hiring skilled labor in construction, IT, and manufacturing. The average monthly wage in the formal sector is DZD 45,000 (≈$325).
Chinese workers in Algeria’s construction sector report wage delays and passport confiscations. The Algerian labor ministry recorded 1,200 complaints in 2023, up from 800 in 2022. The minimum wage is DZD 20,000 (≈$145).
Transport and logistics: Infrastructure expands, but bottlenecks remain
Air Algérie operates 50 aircraft, with plans to add 10 by 2025. The airline reported a 20% increase in passenger traffic in 2023, reaching 6.2 million. Cargo volumes remain flat at 50,000 tons annually.
Port congestion at Algiers and Oran costs businesses an estimated DZD 5 billion (≈$36 million) annually in delays. The average container dwell time is 12 days, compared to 5 days in Morocco.
Food security: Drought risks rise
The government’s 2024 food security plan allocates DZD 200 billion (≈$1.45 billion) to irrigation and storage. Current grain storage capacity is 4 million tons, 60% of annual consumption.
Entrepreneurs in agribusiness report rising input costs. Fertilizer prices increased 30% in 2023. The average farm size is 5 hectares, with 70% of producers operating below subsistence levels.
Tourism and historical sites: Potential untapped
The government’s 2023–2027 tourism strategy targets 5 million annual visitors. Investments in hotel infrastructure totaled DZD 50 billion (≈$365 million) in 2023. The average hotel occupancy rate is 45%, compared to 65% in Morocco.
Entrepreneurs cite visa restrictions and poor air connectivity as barriers. Direct flights to Europe are limited to Paris, Marseille, and Madrid. The average visa processing time is 15 days.
Regional relations: Algeria’s positioning hardens
Relations with Morocco deteriorated after Algeria severed diplomatic ties in 2021. Bilateral trade fell from $1.2 billion in 2018 to $150 million in 2023. Algeria’s 2024 budget allocates DZD 1.5 trillion (≈$11 billion) to defense, a 10% increase from 2023.
The government signed a $7 billion gas supply deal with Italy in 2023, replacing Russian supplies. Algeria’s gas exports to Europe reached 55 billion cubic meters in 2023, up 20% from 2022.
SARL companies: Media and labor crises
Entrepreneurs in media report advertising revenue declines. The average digital ad rate is DZD 50,000 (≈$365) per 1,000 impressions, compared to DZD 80,000 (≈$580) in 2019.
SARL (limited liability company) registrations reached 12,000 in 2023, up from 10,500 in 2022. The average startup capital is DZD 1 million (≈$7,250). Corporate tax is 26%, with a 19% VAT rate.
Women in the workforce: Legal reforms, persistent barriers
Women represent 18% of the formal workforce, up from 15% in 2010. The gender pay gap is 22%. Female entrepreneurs account for 25% of SARL registrations.
The 2024 budget allocates DZD 50 billion (≈$365 million) to women’s employment programs. The average loan for female-led businesses is DZD 3 million (≈$21,750), with a 5% interest rate.
Balance of the week
Key takeaway for entrepreneurs
💡 Starting a business in Algeria? GlobalStart guides you step by step: procedures, real costs, company forms (SARL, EURL, SPA) and CNRC registration.