Algeria’s Hirak protest movement, which surged in 2019, has resurfaced in recent months with renewed calls for systemic change. The demonstrations, now in their fifth year, have reignited a national conversation about economic reform—one that entrepreneurs, founders, and the Algerian diaspora are watching closely. While the protests have not yet translated into tangible policy shifts, their persistence has kept economic liberalization on the public agenda. For business leaders, the question is no longer whether Algeria needs reform, but how soon it will come—and what that means for investment, startups, and the role of young talent in the economy.
A protest movement with economic roots
The Hirak began in February 2019 as a rejection of former president Abdelaziz Bouteflika’s fifth-term bid, but its grievances quickly expanded beyond politics. Protesters cited unemployment, corruption, and the dominance of state-owned enterprises as barriers to economic opportunity. According to the World Bank, Algeria’s youth unemployment rate stood at 29.1% in 2023, with even higher figures for university graduates. This mismatch between education and labor market needs has fueled frustration, particularly among university students and young professionals.
Entrepreneurs have long argued that Algeria’s economy suffers from two critical flaws: an overreliance on hydrocarbons and a business environment that stifles private sector growth. SONATRACH, the state-owned oil giant, still accounts for the vast majority of export revenue, leaving the economy vulnerable to oil price fluctuations. Meanwhile, bureaucratic hurdles and limited access to financing have made it difficult for startups to scale. The Algerian Chamber of Commerce and Industry (CACI) estimates that only 3% of small businesses survive beyond their first five years, a figure that underscores the challenges of operating in the current system.
The diaspora’s role in pushing for change
The Algerian diaspora, particularly in France, Canada, and the Gulf, has emerged as a vocal advocate for economic reform. Many in the diaspora are second- or third-generation professionals who maintain strong ties to Algeria, either through remittances, investment, or policy advocacy. Recently, diaspora groups have intensified their lobbying efforts in European capitals, urging governments to pressure Algiers on business climate improvements as a condition for deeper trade ties.
A 2024 report by the Algerian Ministry of Foreign Affairs notes that remittances from abroad reached $11 billion in 2023, equivalent to nearly 5% of GDP. This financial lifeline has given the diaspora leverage, but also a stake in Algeria’s economic future. Entrepreneurs abroad are increasingly exploring dual-location models—launching ventures in Algeria while operating remotely from abroad—to navigate regulatory constraints. For example, tech founders in Montreal or Paris often set up subsidiaries in Algiers to tap into local talent while maintaining operational flexibility.
Business leaders respond to the pressure
In response to the Hirak’s demands, President Abdelmadjid Tebboune has introduced incremental reforms, though critics argue they fall short of what’s needed. In 2022, the government passed a new investment law aimed at simplifying procedures for foreign investors, including 100% ownership rights in certain sectors. However, implementation has been slow, and restrictions remain in key areas like energy and telecommunications.
For Algerian startups, the most immediate impact has been a shift in investor sentiment. Venture capital funds, both local and international, are becoming more selective, favoring sectors with clear growth potential—such as fintech, agribusiness, and green energy. According to a 2024 report by the Algerian Startup Association, funding for Algerian tech startups rose by 40% between 2022 and 2023, though total investment remains modest compared to Morocco or Tunisia. The rise of coworking spaces in Algiers and Oran reflects this growing ecosystem, with hubs like Startup Your Life providing mentorship and networking opportunities for founders.
The oil sector’s slow transition
SONATRACH’s dominance continues to overshadow broader economic diversification efforts. While the company has pledged to reduce flaring and invest in renewables, progress has been incremental. In 2023, SONATRACH signed a $4 billion deal with Italian energy firm Eni to develop solar projects, but critics argue this is too little, too late. The International Energy Agency has repeatedly urged Algeria to accelerate its renewable energy transition, warning that prolonged reliance on hydrocarbons risks leaving the country behind in global markets.
For entrepreneurs in Algeria, this presents both a threat and an opportunity. High energy costs and unreliable power supply remain major obstacles for manufacturers, while subsidies for state-backed industries distort competition. Yet, the push for renewables is creating niche markets for solar installers, battery storage solutions, and energy consultancies. Local firms like Naftal, a fuel distributor, have begun diversifying into electric vehicle charging stations, positioning themselves for a potential shift in consumer demand.
What the Hirak means for future policy
The resurgence of Hirak protests in early 2025 has forced Algeria’s government to acknowledge that economic grievances are far from resolved. Recently, labor unions and business associations have intensified negotiations with the Ministry of Industry to ease licensing requirements for small and medium-sized enterprises (SMEs). Meanwhile, university graduates—many of whom participated in the 2019 protests—are increasingly vocal about the mismatch between their education and job opportunities.
The government’s response has included targeted programs, such as the Moukawil initiative, which offers grants and training for young entrepreneurs in digital sectors. However, bureaucracy remains a persistent barrier. A 2024 survey by the Algerian Employers’ Federation found that 68% of business owners cited administrative red tape as their biggest challenge, ahead of access to credit.
Key takeaway for entrepreneurs
Algeria’s entrepreneurs must prepare for a prolonged period of uncertainty. While the Hirak has kept economic reform on the agenda, tangible changes will likely come slowly. Founders should focus on sectors with regulatory flexibility, such as tech and renewable energy, and explore partnerships with international firms to mitigate local constraints. The diaspora’s growing influence suggests that cross-border ventures will become increasingly viable, offering a way to bypass some of Algeria’s structural challenges.
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