ALGERIA

OVERVIEW OF THE COUNTRY

GEOGRAPHY
At 2.4m sq km, Algeria has the largest land mass of any country in Africa or the
Mediterranean. Located in the Maghreb region of North Africa, it boasts a Mediterranean
coastline of more than 1200 km, with 6734 km of land bordering seven countries and
territories: Libya, Mali, Mauritania, Morocco, Niger, Tunisia and the Western Sahara. The
country is divided into 48 administrative provinces, known as wilayas, and 1541
municipalities, or baladiyahs. The largest wilaya by land mass is Tamanrasset in the south,
with a sparsely populated area of 556 sq km, but the largest according to population remains
the Algiers metropolitan area.
Algeria can be broadly divided into three topographical regions:
THE TELL, a narrow coastal strip north of the Tellian Atlas mountains. In the north, the
Mediterranean Sea dominates the fertile coastal plains that extend up to the Atlas Mountains.
THE HAUTS PLATEAUX, between the Tellian Atlas and Saharan Atlas mountain ranges
form a semi-arid zone
THE DESERT REGION to the south of the Saharan Atlas range, which accounts for 80%
of the country’s territory.
Characterised by hilly and mountainous terrain, Algeria’s average elevation is 800 metres
and more than half of the country is at least 900 metres above sea level. The highest point is
Mount Tahat, standing at 2908 metres in the Hoggar range of the Sahara region. The north of
the country lies at the boundary of the African and Eurasian tectonic plates, and thus is
seismologically active. In 1980 and 2003 major earthquakes struck the country, each
individually killing and wounding at least 2000 people.
In the north summers are generally hot, and winters are moderate but can be very rainy. This
has obliged the country to make substantial investments in water management. The northern
cities have long suffered from shortages of drinking water during the summers. Through the
use of artificial lakes, the improvement of water pipelines, and the construction of
desalination plants, the situation has improved recently. In winter, the abundance of rain often
causes problems in urban areas, where infrastructure has been neglected The northern coastal
region is relatively fertile and receives up to 1000 mm of rain in some areas, and benefits
from year-round rivers descending from the nearby Tellian Atlas mountains. Due to erratic
rainfall, rivers in other regions do not have water year-round, and none of the country’s rivers
are navigable.
Further south, the steppes become increasingly arid, giving way to the Sahara Desert beyond
the Atlas Mountains. While the southern desert regions have large intraday variations in
temperature and can be hot all year round, coastal areas can be classified as Mediterranean.
The majority of the population lives in these areas, where summers are hot and dry, while
winters are relatively cool and wet. The central Hauts Plateaux have a similar climate, though
they experience less and far more irregular rainfall overall. Average temperatures in Algiers,
range from 22°C to 29°C in August, the hottest month of the year, to as low as 9°C to 15°C in
January.
The High Plains that extend south of the Atlas get far less rain. Winters can be cold, and
summers are hot. The plains consist of grasslands and small bushes that traditionally provided
pasturage for sheep and goats. The water supplies in the plains area are concentrated in
natural reservoirs. These chotts are marshes (often salty) in low-lying areas. Further south,
the High Plains are delimited by the Anti- (or Saharan) Atlas, which are not as high as the
more northern Atlas range.
Four-fifth of the country lies in the Sahara Desert. The Sahara is very hot in summer, with
temperatures that can reach more than 50˚C. In winter, daytime temperatures are comfortable,
but night can be freezing cold, because much of the heat originating from solar radiation
during the day can escape the surface through the cloudless night-time sky. The driest parts of
the Sahara can remain rainless for years, but unpredictable rains sometimes fall in torrents
that can have a devastating impact. The desert city of Ghardaïa, for example, experienced
large floods in October 2008.
The desert may appear harsh and unwelcoming at first sight, but it contains many treasures.
There are the underground riches of oil and natural gas that have shaped the course of Algerian
history since independence. In addition, precious metals are found in the remote corners of
the desert.
A geological feature that has occasionally affected the country severely is the location of
northern Algeria in the zone where the African and European tectonic plates meet, resulting
in a high risk of earthquakes. The most populated areas in the coastal plains lie on the edge of
this zone
NATURAL RESOURCES
Algeria is one of the leading African producers of hydrocarbons, ranking first in gas
production and among the top-three oil producers. According to the Organisation of the
Petroleum Exporting Countries (OPEC), of which the country has been a member since 1969,
Algeria has proven oil reserves of 12.2bn barrels and proven gas reserves of 4.5trn cu metres,
the third and second largest on the continent. Although not yet commercially exploited, the
country has large reserves of shale oil and gas, and ranks third globally behind China and
Argentina in terms of technically recoverable shale gas reserves. At the same time, much of
the country’s territory is either under-explored or unexplored, and offshore exploration has
remained limited. Domestic consumption of oil and gas has doubled since 2010, while
production has continued to stagnate, which has resulted in declining volumes of
hydrocarbons exports. When combined with the sharp fall in global prices that occurred in
2014, this has continued to weigh on both exports and government revenue
Oil reserves are about 1 percent of proven global reserves. Currently Algeria is the twelfth
largest exporter of petroleum in the world. Most oil products now go to the growing domestic
market, making the oil industry a less important source of external revenue.
With 2.2 percent of the world’s proven natural gas reserves, Algeria is less important than
major producers such as Russia, Iran, and Qatar. Algeria accounts for 2.4 percent of global
gas production. Domestic consumption per capita is, however, lower than in other gas-
producing countries, leaving a relatively large share for export.
Major oil and gas fields lie in the northern Sahara
In addition to hydrocarbons, Algeria also has notable reserves of high-grade minerals. The
country has the third-largest reserves of phosphates in the world, and has significant proven
deposits of iron ore, gold, zinc, copper and uranium. Many of these deposits are under-
exploited or under-explored due to their location in the more isolated and mountainous
southern regions of the country, areas which frequently have underdeveloped transport
infrastructure links.
Water is scarce, both in the desert and in the heavily populated north. The government is
trying to improve the situation by building or reconstructing dams to create water reserves.
An alternative though more expensive option is to produce drinking water from seawater by
desalination. Over the last decade, large investments have been made in the development of
desalination plants. Some fifteen installations have been planned, about half of which have
been completed. Despite the costs involved and the technical difficulties, this programme,
involving specialized foreign construction firms is of uttermost importance to the country.
LAND FERTILITY
Most of Algeria’s fertile land is found in the coastal plains, in the
traditional agricultural areas such as the Mitidja Plain around the capital Algiers. El Oued and
Biskra, in north-eastern Algeria, are major date-producing regions. The Atlas Mountains are
home to nut and fruit trees as well. Wine grapes, one of the main products in colonial times,
are still being grown, particularly in the region of Mascara, in the north-west. Algerian wine
can be found in some major restaurants in the big cities and is also being exported in limited
quantities.
In the Saharan region, many oases have also long been cultivated. The desert contains
significant groundwater reserves that permit palm trees and some other crops to grow. The
most famous products are the dates from the regions of Tolga and Biskra; they are the most
important export product after oil and gas. The inhabitants of the oases have also been able to
cultivate vegetables that need more water by drilling wells, building irrigations systems, and
creating a network of low walls to keep the sands out.

POLITICAL.
Legislative power is shared between the executive and the two chambers of Parliament,
namely the National People’s Assembly (Assemblée Populaire Nationale, APN), or lower
house, and the national council, or upper house. The 462 members of the APN are directly
elected to serve five-year terms under a proportional representation system of multi-seat
constituencies, with eight seats reserved for Algerians living abroad. The last assembly
election took place in May 2017. The president appoints a third of the members of the
national council, with the other two-thirds elected for six-year terms, and half of that number
elected for three-year intervals. At a local level, the country is divided into 48 administrative
divisions, known as wilayas, each of which are governed by a regional governor, or wali,
appointed by the president. The legal system is a mixture of French civil law and Islamic law,
with an Constitutional Council consisting of public officials and Supreme Court judges
charged with the judicial review of legislative measures. The 150-member Supreme Court is
the highest judicial body in the country, structured around eight functional chambers.
Supreme Court judges are appointed for lifelong terms by the High Council of Magistracy,
which is presided over by the president. Despite the influence of Islamic law on the Algerian
legal system, there are no sharia courts currently operating in the country
Algeria has a presidential system. In reaching decisions, the President has to agree with the
heads of the military and security apparatus. This makes the Algerian system a far more
collective enterprise than those of many other countries in the Middle East and North Africa,
where the President personifies the system. The President wields the main executive powers
and is supported by the Prime Minister and the Council of Ministers. Algeria has a bicameral
Parliament. The Senate or Council of the Nation, comprises representatives from the country’s
provinces while one-third of the members are appointed by the President. The Senate has the
power to block legislation of the People’s Assembly. The basic judicial institutions are the
tribunals and, at the level of each province, the courts. At the national level, the Supreme
Court acts as a supervisor of these local jurisdictions.
Algeria consists of 48 provinces, which are divided into 1,541 municipalities.
POLITICAL PARTIES: Algeria is a multi-party democracy with more than 40 parties in
operation. Although the constitution expressly forbids the establishment of political parties
founded on a religious, linguistic, racial, sex, corporatist or regional basis, there is a degree of
latitude in the interpretation of this clause. A number of Islamist parties are currently
represented in Parliament, for example. All parties require the assent of the minister of the
interior in order to register. Considering the increasing diversity of political representation,
coalition politics are becoming increasingly popular. Prime Minister Ouyahia governs a
coalition headed by the FLN party, which gained 164 seats in the lower house in the May
2017 election, compared to 97 gained by the RND. Since 2005 these two parties have
governed as part of the Presidential Alliance, having previously been joined in coalition by
the Social Movement for Peace. This is a moderate Islamist party which has 33 members in
the APN, but which ultimately withdrew from the alliance in 2012. An additional two
Islamist movements – the Algerian Rally for Hope and the three-party Nadha-Adala-Bina
coalition – currently hold 19 and 15 seats in the lower house, respectively

POLICY & REFORM AGENDA

The government announced in late 2017 that it was changing its economic strategy, deciding
to postpone focusing on the budget deficit until at least 2019 and permitting the central bank
to finance the budget deficit for a period of five years. This was expected to be accompanied
by a wide range of structural reforms which were aimed at further diversifying the economy,
stimulating domestic production and reducing the current account deficit. The IMF warns that
the continuation of monetary financing beyond the short term will likely have the effect of
significant medium-term economic risks, and the country’s international reserves have
already begun a precipitous decline. Beginning in early January 2018 some 850 products
became subject to import restrictions, with tariffs and excise duties also increasing on a range
of other, mostly luxury, consumer goods. After the April 2019 election concluded, it was
expected that the country will return to a more orthodox macroeconomic policy stance.
However, the budget deficit reduction that this entailed weighed heavily on economic growth
and standard of living in the next several years. This impeding of economic growth may
make efforts to introduce the needed structural reforms more difficult than previously
anticipated.
ECONOMY
Algeria’s GDP reached $73 bn by the end of 2019, making it the largest economy in the
Maghreb region and second largest in North Africa after Egypt. Its per capita GDP,
anticipated to reach $4500 by the end of 2018, indicates that it has the highest living
standards in the Maghreb. Tunisia and Morocco follow with per capita GDPs of $3573 and
$3355, respectively. Neighbouring Libya has experienced a strong recovery, with its per
capita GDP reaching $6639 and surpassing Algeria’s. Due to the size of its population, Egypt
has the largest economy in the region, but it experiences the lowest living standards, with its
2018 per capita GDP predicted to come in at $2572. Measured on a purchasing power parity
basis, Algeria boasts the highest GDP per capita in the region by virtue of its lower price of
basic purchasable goods. The state continues to play a dominant role in the Algerian
economy, depending on oil and gas exports for some 60% of public revenue and 96% of
exports. The sharp decline in global oil prices since 2014 resulted in several challenging
years for the Algerian economy. However, until 2016 its relatively low debt-to-GDP ratio and
significant savings in its hydrocarbons stabilisation fund allowed the government to maintain
high fiscal deficits, and thereby cushion the negative impact it might have on economic
growth. Fiscal consolidation in 2017 caused growth to diminish to 1.4% that year, down from
3.2% in 2016, accompanied by a corresponding increase in overall levels of unemployment.
Facing the challenges of this economic downturn, in late 2017 the authorities made changes
to economic policy, and in 2018 they financed government spending by way of monetary
financing through the central bank. While this is expected to boost economic growth in the
short term, with the IMF forecasting GDP growth of 2.5% for 2018, it risks an eventual
increase in inflation. When the authorities do take action to rein in the budget deficit,
economic growth is expected to slow significantly. At the same time, the imposition of
import restrictions on 851 consumer products has done little to impede the current account
deficit or slow the decline in international reserves thus far, raising chances of more difficult
corrections in future years. The authorities have signalled their intention to introduce a wide
range of structural reforms aimed at diversifying the economy, promoting the private sector
and gradually leading the country away from its established dependence on hydrocarbons. A
number of actions have been taken to achieve these goals since 2015, with new initiatives
also to be launched in 2019
ECONOMIC
Hydrocarbons have long been the backbone of the economy, accounting for roughly 30% of
GDP, 60% of budget revenues, and nearly 95% of export earnings. Algeria has the 10th-
largest reserves of natural gas in the world - including the 3rd-largest reserves of shale gas -
and is the 6th-largest gas exporter. It ranks 16th in proven oil reserves. Hydrocarbon exports
enabled Algeria to maintain macroeconomic stability, amass large foreign currency reserves,
and maintain low external debt while global oil prices were high. With lower oil prices since
2014, Algeria’s foreign exchange reserves have declined by more than half and its oil
stabilization fund has decreased from about $20 billion at the end of 2013 to about $7 billion
in 2017, which is the statutory minimum.
GDP growth stood at 1.5% for 2019 same as 1.5% in 2018, on the back of a slight rebound in
hydrocarbon prices. The hydrocarbon share of GDP fell from 34.2% in 2012 to 19.7% in
2017 (it was 44.3% in 2005), and agriculture and services gained slightly in weight. The
relatively subdued economic growth is mainly due to the fall in value added of the
hydrocarbon sector, while growth in the nonhydrocarbon sector continues to be modest. The
fall in private consumption and the public investment freeze have also been drags on growth.
According to World Bank, Investments increased by 4.9% compared to the first quarter 2019
marked "remarkable progress" as compared to 0.2% of the first quarter of 2018. This
remarkable progress is driven by public investment in the construction, public works and
hydraulics sector with the expansion of social housing program.
Commercial services sectors like industry, construction and public works, agriculture
continue to drive non-hydrocarbon growth with respectively 5.6%, 4.6%, 3% and 2.7%
compared to the first quarter 2019.
Inflation, 4.3% in 2018, remains under control as it declined to 4.1% by the end of march
2019 and is estimated to decline to 2.0% in 2020. The Algerian dinar has depreciated in
recent years, with the average exchange rate weakening from 77.6 dinar to the dollar in 2012
to 120 dinar in 2019, and the parallel foreign exchange market offering a premium of around
60%.
Current account deficits are estimated to widen to 8.1% of GDP mainly due to large trade
deficit according to World Bank as compared with 9.6% in 2018. The Oil Stabilization Fund
(FRR), which financed the fiscal deficit, was depleted in 2017. Since then, the central bank
has had recourse to unconventional financing. From mid-November 2017 to April 2019, it
raised $55 billion, equivalent to 32% of GDP in 2018.
The poverty rate has come down since the 1990s due to direct transfers, universal subsidies,
and measures in favor of social inclusion, amounting to 12.3% of GDP. Data from 2011 give
a poverty rate of 5.5%, with an extreme poverty rate of only 0.5%. The unemployment rate,
estimated at 12.6% for 2019, is forecast to rise to 13.7% in 2020.
In the medium term, economic growth is forecast to remain relatively stable, at 2.2% in 2020
and 1.8% in 2021. The authorities have an ambitious plan of structural reforms with a view to
streamline business regulation, improve governance and transparency, reform the pension
system, and modernize the financial sector.
This plan is based on actions already taken to improve the business climate, including
opening sea and air freight to the private sector. External debt remains negligible (less than
2% of GDP), but domestic debt (excluding guarantees) rose from 7.2% of GDP in 2015 to
more than 26% in 2018.
The Algerian economy will continue to be dependent on and vulnerable to oil and gas prices
(96% of export receipts in 2017). The rise in oil prices since 2018 (to around $70) will not
enable Algeria to balance its budget (according to a study by the IMF, Algeria would need an
oil price of $90 a barrel). A further fall in oil prices cannot be ruled out given the trend
increase in US production. Official foreign exchange reserves fell from $114.1 billion (22.5
months of imports) at the end of 2016 to $79.8 billion (16 months) at the end of 2018. In
2019 and 2020, economic activity will be curbed by the sharp fall in public investment
spending and by political uncertainty. The main challenge in the short term is to continue to
maintain price stability and deal with inflationary pressures in an environment of substantial
and persistent surplus liquidity.

GDP GROWTH 2011- 2020F

4

3.5

2.5

1.5

0.5

0
2011 Source: IMF
2012 2013 2014 2015 2016 2017 2018

Government budget for Agriculture: 2015-19

300

250

200

150

100

50

0
2015
Source: MoF 2016 2017 2018 2019

AGRICULTURE

Land area 2381740 s. km.

Agricultural land (% of land area) 17.37% (413602 s. km)
Arable land (% of land area) 3.11% ( 7404200 ha)
Forest area (% of land area) .8244% (19636 s. km)
Land area under cereal production 3510637 ha
 Cereal production 3478073 metric tons
Cereal Yield 991 kg/ha
Fertilizer consumption (% of fertilizer 8.21%
production)
Cereal production index 151.62 (2016)
Employment in agriculture( % of total 9.21% ( 10.31 % males, 3.09%
employment females)
Agriculture raw material imports ( % of 1.04%
merchandise imports)
Agriculture raw material exports (% of 0.0725%
merchandise imports)
Agriculture Machinery 104529

Agricultural production is a moderate contributor to the Algerian economy, accounting for

11-12 percent of GDP and 9.21 percent of total employment in 2019. The value of the sector
rose from AD359bn (€2.6bn) in 2000 to AD3.1trn (€22.5bn) in 2017, according to the
Ministry of Agriculture, Rural Development and Fisheries, MADRP), an increase of 760%.
The contribution of agriculture to GDP rose from 8% to 12.3% over those same years.
Algeria’s GDP as a whole grew by 1.6% in 2017, while agriculture grew by 4.2%. The sector
continued to post impressive growth in 2018, at 8.9% in the second quarter, up from 0.7% in
the same quarter of 2017. Some 1.2m jobs and 22,000 small and medium-sized enterprises
have been created in the sector since 2000. The sector's contribution to the economy,
however, has declined sharply since independence. Years of government restructuring, lack
of investment, meager water resources, and dependence on rainwater for irrigation have
contributed to this decline. The production of cereals as well as orchard and industrial crops
has significantly dropped. As a result, Algeria today has become dependent on food imports,
accounting for close to 75 percent of food needs.
Although Algeria is the second-largest country in Africa, the arable land of about 7.4 million
hectares accounts for only 3.11 percent of the total land area. The vast Sahara desert, which
spans much of the south central part of the country, is not available for agriculture. Between
1961 and 1987, all arable land was controlled by the state, which divided the land into state
farms, known as domaines agricoles socialistes . State farms were dismantled in 1987 and the
land was divided into smaller collective and individual farms. Despite these measures, about
one-third of cultivable land in Algeria is still owned by the government, which leases the land
to private investors and farmers. The remaining two-thirds of arable land (about 5 million
hectares) is privately owned.
Algeria's main crops are cereals (mainly wheat and barley), citrus fruit, vegetables, and
grapes. Fresh dates exports have risen sharply in the past decade and have become the
second-largest export after hydrocarbons. Some 72,000 hectares are cultivated with palm
trees, mainly in the Saharan oases. Algerian dates are mainly exported to France, Russia,
Senegal, and Belgium. Algeria was once a major exporter of wine and associated products.
Despite government efforts to revive the sector, production has fallen significantly since
1962, reaching 248,000 hectoliters (6,552,160 U.S. gallons) in 1996, down from 410,000
hectoliters (10,832,200 U.S. gallons) in 1992. Algeria is also a producer of olive oil, and
production has generally averaged around 150,000 hecto-liters (3,963,000 U.S. gallons)
annually.
The bulk of Algeria's crops are cultivated in the fertile but narrow plains around Bejaïa and
Annaba in the east, in the Mitidja Plain south of Algiers, and beyond Oran from Sidi Bel
Abbes to Tlemcen. The agricultural sector's dependence on rainwater for irrigation has often
affected its production levels, especially during droughts. The cereal harvest, for example,
was badly affected by drought conditions that plagued North Africa in 2000, producing only
half of its annual yield. Hence, despite government efforts to extend funding and technical
assistance to farmers and increase the productivity of the agricultural sector, Algeria imports
the bulk of the food it consumes, especially cereals (mainly wheat).
In Algeria agriculture is an extremely important sector of the national economy. It covers the
majority of the country’s territory and takes up more than 90 per cent of the existing 1,541
municipalities. It provides direct or indirect employment to13 million Algerians living in
rural areas improving the living conditions of many families. Furthermore, it is recognized
that agricultural employment generates at least three other types of occupation: transport,
trade, valuation. Considering the agriculture and rural development policies framework,
family farming is characterized by a special link that connects economic activity, family
structure and the territory. The workforce is mainly composed of family members who are
not employees and whose income depends on the agricultural activity.
In Algeria, small-scale, family farming is prominent, with more than 70 per cent of farms
belonging to this category.
Main constraints facing family farming in Algeria
Legal status of agricultural land
Significant reforms have been made in recent years in particular for public owned lands
(completion of the right of use’s conversion into concession fees) and for the access to land
property through purchase (property title transfers).  On the contrary, no action has been
undertaken with reference to the private sector, which generally has a non-titled land, thus:
Level of agricultural training
2.7 per cent  of holders (27. 158) have received agricultural training: among them, 98.5 per
cent  are men and 1.5 per cent  are women;
Out of the 27,158 farm managers who have received agricultural training, 53 per cent
received an advanced course and 20 per cent are senior technicians or engineers.
Access to credit and social security:
The RFIG credit, whose cumulative granted amount is 72 billion dinars for the purchase of
inputs, forage and other agricultural products in the framework of the Regulatory System for
High Consumption Products (SYRPALAC);
The federal credit, whose total granted amount is 2.3 MDA for production of milk, cereals,
potato seeds, table olives and olive oil; production and distribution of small agricultural tools,
irrigation, greenhouses ...;
The leasing credit, whose overall amount of financing  for the agricultural machinery
program since 2008 is 3.5 MDA,  of which 1.5 MDA represent the BADR-leasing financing
(Algerian Bank of Rural Development).
The emergence of a new device (2016) to allow e farmers and their dependents to benefit
from social security.
Agricultural Policies and Family Farming
At present, the policies planned by the Algerian authorities to promote agriculture – and
especially the family farming component are:
1. The recognition of a legal, economic and social status to family farming  as a pillar of
food security, of the fight against hunger and poverty and as a source of employment
in rural areas, in particular for young people and  women.
2. The integration of family farming as a central issue in the context of agricultural, rural
and food policies.
3. Securing farmers by granting real property rights (especially to the most
disadvantaged and most venerable, such as youth and women), promoting medium
and long-term investments in small and medium-sized farms.
4. Integration of the management of natural and agricultural risks in the development of
agricultural, rural and food policies; and the promotion of agricultural insurances (also
counting on public support, particularly during the launch phase of these devices).
5. The establishment of an emergency plan to achieve farmers’ access to agricultural
social insurance,  which is  a necessary prerequisite for setting up trained and
qualified young farmers and therefore  for the modernization of agriculture in Algeria.
6. Facilitate the establishment of trained young farmers in the reclaimed lands, through
incentive schemes that allow the rapid replacement of older farmers still active on the
farms.
7. The implementation of an extensive capacity-building program for farmers and
breeders, focused on technical and scientific knowledge (training and extension)
related to through the establishment of training institutions, technical institutes and
agricultural research centres.
8. The promotion of mutual agricultural credit and insurance that might could support
the very risky nature of agricultural activities, being able with the capacity to allow
access to credit to the majority of farmers, and to support investment in farms and
therefore agricultural development.
9. Focusing agricultural support on family farming and its integration; support to
activities related to the protection of natural resources and the mountain, steppe and
oasis environments
The Government of Algeria has two main programs to develop the agricultural sector. The
first program consists of granting land to private industrialists and investors to launch large-
scale farms to grow cereals and dairy farms. The second program consists of achieving self-
sufficiency in durum wheat and pulses production. A third program was added to resorb
fallow land by using it to grow fodder and pulses in addition to the areas located for barley
and oats. For MY2019/20, the Ministry of Agriculture is planning to use 88,835 ha of fallow
land to grow pulses (14,480 ha), fodder (22,784 ha) and cereals and vegetables (51,572 ha).
In MY2018/19, the MoA used 78,616 ha of fallow to grow pulses and fodder.

Agriculture has become an important contributor to Algeria's socio-economic development.

After hydrocarbons, agriculture is the country's second-largest GDP contributor, at around
10%, with 25% of the population employed in the sector. Self-sufficiency with regard to fruit,
vegetables and meat has been achieved while cereal, milk production and fishing have been
expanded. Algeria is also transitioning gradually from a net importer of agricultural goods
into an exporting economy by focusing on the promotion of those particular goods that have a
comparative advantage, such as dates, wine and olives. The agricultural sector is working on
raising the standards up to international norms and a new framework for exports is in the
process of being constructed.
The liberalization of the Algerian economy policy started in 1994 and the reform of the
regulations on investment have produced remarkable results in terms of Foreign Direct
Investment (FDI), despite the widespread fall of investment overseas in Africa, Algeria has
received a steady flow of investment reaching over 100 billion $.
New approach to agricultural policy: The three pillars of the policy Agricultural and
Rural Renewal, desired as an instrument for the realization of food sovereignty, has
three complementary components:
1. agricultural Renewal
2. rural renewal
3. human capacity development and technical support to the producers.
 
Main asset of Algerian agriculture
1. wide diversity of agricultural and climatic environments;
2. slight recourse to chemicals;
3. big market (local and close to external markets: Mediterranean basin, African
countries);
4. possibility to put in the market:
5. a vast range of products;
6. high quality products even organic.
 
Incentive measures:
1. Introduction of seasonal credit “R'fig” the amount of which, granted to grain
farmers exceeded 17 billion DA
2. Allocation of subsidized loans amounting to 1 million dinars per hectare
for land development and the creation of farms not exceeding 10 ha
 3. Allocation of subsidized loans of up to hundred million dinars (100 million DA) for
concessionaires operating profit of over 10 hectares and any other beneficiary of
the “credit Ettahadi”.
4. Establishment of a guarantee scheme for bank loans to farmers. 
 

NATIONAL PRIORITY
A number of driving forces are behind Algeria’s efforts to boost domestic agricultural output
and cut the food import bill. First, the country is looking to diversify away from its
dependence on hydrocarbons revenue, given fluctuating international oil prices; second, the
population is forecast to rise by 25% to nearly 50m people by 2030, thus substantially
increasing food demands; and third, Algeria faces serious side effects from climate change –
including heat waves – which means maintaining food security is a priority.
Food production improved between 2007 and 2018 thanks to efforts to clear some of the
obstacles that have traditionally hindered the sector’s development, such as financing,
legislation, insufficient infrastructure and land ownership. The authorities are currently
enforcing strict new rules that allow for the re-appropriation of unused agricultural land and
are investing heavily in irrigation to tackle water issues
POLICY: The Agricultural and Rural Renewal Policy has guided the growth of the
agriculture sector since 2008. The strategy aims to deliver permanent support for national
food security through “the intensification of production in strategic agri-food chains, and the
development of rural areas”. Meanwhile, the National Investment Development Agency,
designed to facilitate foreign direct investment in various sectors, has the following policy
objectives for agriculture: develop agricultural land and integrated farming; encourage
public-private partnerships (PPPs) in pilot farms; develop agricultural mechanisation,
irrigation systems and fertilisation techniques; create modern nurseries; grow additional
greenhouse crops and forage crops; increase production of sheep, cattle, goats, white meat,
fruit, vegetables and milk; promote local dates, oils and grapes; improve storage and cold
storage capacity; and invest in the agri-food industry.
LOCAL AID: In addition to efforts to bring in capable foreign players, Algerian farmers
themselves benefit from various forms of state aid, such as the provision of quality seeds and
other inputs, as well as support in times of natural catastrophe. During the 2017/18 harvest
campaign, for example, some 13,500 farmers received credit totalling AD6bn (€43.6m.
Support also came in the form of government investment in agricultural programmes via the
university system and other training avenues. Not only did this educate more citizens on the
latest farming techniques and technologies, but it also served to attract a greater amount of
young people to a sector whose participants are ageing.
LAND USE: The MADRP has issued 180,000 concessions for 219,406 registered farms
between 2000 and early 2018, and is prioritising supporting producers based in the Hauts
Plateaux and southern regions of the country. However, of the more than 8m ha that comprise
Algeria’s arable land, 3m ha are going unused, and only 30,377 of the 830,600 recipients of
state aid have added value to their lands.
 PRODUCTION AND PRODUCTIVITY
YEAR CEREAL YIELD (KG/Ha) CEREAL
PRODUCTION (metric
tons)
2017 990.7 3478073
2016 1020.4 3445121
2015 1400.2 3761224
2014 1369.2 3435535
2013 1813.1 4912551

MARKET OPPORTUNITIES
The Felaha 2019 initiative, published in June 2016, has revitalised existing policy by
prioritising research and knowledge transfer, establishing new businesses, building
partnerships with global agri-business leaders, expanding irrigated area, boosting public
spending and working towards self-sufficiency in key segments like durum wheat by 2020.
The initiative targets annual sector growth of 5%, AD4.3trn (€35.2bn) of output value and
1.5m new agricultural jobs by the end of 2020..
INVESTMENT: The state invested AD3trn (€21.8bn) in the sector between 2000 and 2017,
according to Abdelkader Bouazghi, the minister of agriculture, rural development and
fisheries. More than 12,000 proximity projects have been financed – which are rural
community initiatives to develop techniques and supply chains – 1.2m rural housing units
created and 500,000 farms revitalised. In addition, the draft 2019 Finance Law allocated
AD265.1bn (€1.9bn) to the sector for the year, an increase of 25.2% on 2018. The authorities’
plans include creating livestock markets in various wilayas (provinces), with veterinarians in
place to oversee meat harvesting, while PPPs are actively being sought in the domain of
large-scale farming. For instance, public agricultural group Gvapro managed 74 new pilot
farms as of late 2018, 35 of which were structured as PPPs with foreign firms, according to
information provided by Gvapro.
Algeria is offering foreign investors concessions for farmland. Under the plan, actors from
abroad would need to work in partnership with the state or a private Algerian firm under the
51:49 investment law, which caps the foreign investor’s share at 49%.
In 2010 Algeria passed a law permitting local private firms to lease government-owned
farmland for 40 years, and those companies could then enter into partnerships with foreign
operators. Foreign investors were not allowed to directly hold a concession, however. The
initiative has not yet provided a substantial boost to development, thus the new legislation is
hoped to jump-start farming operations on the 3m ha of suitable land that lays vacant around
the country.
MARKET OVERVIEW
The Algerian Agriculture industry is projected to grow at a CAGR of 1.9% during the
forecast period (2020-2025). The government policies and programs to increase domestic
production, privatization of the seed sector and increasing investment in agricultural
infrastructure are the three major drivers behind the growth of the market studied. Agriculture
in Algeria is mostly affected by drought and is unable to meet the domestic demands. Hence,
the import of crops plays a major role in the sector. The Algerian government and its
Ministry of Agriculture are continuously striving toward reducing the imports and increasing
domestic production of the crops that are in demand. Climate is one of the major factors
affecting crop production in Algeria.
KEY MARKET TRENDS
The high share in the economy’s performance has led the government to consider the
agricultural sector to be a priority sector and has put huge efforts to attract foreign, as well as
domestic investments, thereby, expecting to reduce the country’s reliance on imports. As a
part of its effort to boost the agricultural sector, the government is offering incentives on
taxes, including farming concessions, and free long-term leases of farmland to foreign
investors, as well as local counterparts. Owing to such favourable legislative policies, many
private agricultural firms are coming forward to make investments in the agricultural sector.
Algeria mainly relies on imports of agricultural products, mainly due to its weak domestic
output, but owing to such infrastructure improvements, huge investments, and modernization
of distribution channels and retail stores, there is a huge potential observed in the agricultural
sector.

Investment in agriculture infrastructure, 2019

Machinery Pre- harvest infrastructure
Post- harvest infrastructure Others

10%

20%
45%

25%

PRODUCTION OF FRUITS IN ALGERIA

Watermelon accounts for 30% of the fruit production in Algeria, followed by dates, apples,
and grapes. The Algerian fruit market also constitutes oranges on a large scale, which
accounted for around 14% in 2017. But a slight decline in the production of oranges has been
observed due to snow storms. Due to the reduction in production, the consumption of fresh
and processed varieties of oranges has also reduced over the past few years. In order to
reduce the reliance on imports, the Algerian government is offering incentives on taxes,
including farming concessions, and free long-term leases of farmland to foreign investors, as
well as local counterparts.

Agriculture in Algeria: Production in million metric ton,

Fruits, 2015-2018
Column2

8.6

8.2

7.8

7.5

2015 2016 2017 2018

ANIMAL HUSBANDRY
Algeria has 30,765 ha (76,020 acres) of permanent pastures and grazing land, 13% of the
country's total area. About half of the livestock is owned by only 5% of the herdsmen. In
1999 there were an estimated 16,750,000 sheep, 3,400,000 goats, 1,650,000 head of cattle,
200,000 donkeys, 150,000 camels, 70,000 mules, and 55,000 horses. There were also 105
million chickens. Algeria is self-sufficient in poultry meat and eggs, but must import all
inputs (chicks, hatching eggs, feed, veterinary products, equipment). Algeria has a severe
shortage of milk, meat, and cheese and must therefore rely on imports. Algeria produces
about one billion liters of milk annually, while consumption amounts to three billion liters.
FISHERIES
Algerian aquaculture production is in its start-up phase. Since 1920 it has been consolidated
based on a four-phase experience:
Breeding tests for freshwater fish and shrimp.
Experimental production of molluscs, simultaneous to the development of fisheries in fresh
and brackish water lagoons.
Repopulation and sowing in reservoirs for the development of fisheries in inland waters.
The recent creation of the Ministry of Fisheries and Fisheries Resources, as well as the
intervention of the private sector for the establishment of aquaculture companies.
Currently aquaculture production comes from:
Fisheries in brackish and freshwater lagoons located in the east of the country. The
production includes a wide variety of fish (gilthead bream, liza, eels, sole, bass, clams,
oysters, blacksmith, state shrimp, common carp and Chinese carp).
Inland water reservoir fisheries that include fish species such as common carp, Chinese carp,
and catfish.
Mollusc farming by a private businessman includes several dozen tons of mussels from the
Mediterranean and Japanese oysters.
Aquaculture production increased regularly every year from 1999 (250 tons) to 2004 (641
tons), except in 2003 (240 tons) due to drought and total evaporation from the
reservoirs. Ninety percent of the production is from freshwater fish and to a large extent
comes from the regular planting of common carp, Chinese carp and litter fry in reservoirs,
carried out by the Ministry in order to develop commercial fisheries in these bodies of water.
Public and private activities related to aquaculture have been planned. Public projects are
mainly oriented to demonstration and productive support, while private projects are oriented
to commercial aquaculture production. Aquaculture research is led by a divisional director
along with five Research team leaders.

Aquaculture is currently practiced under conditions that meet the requirements of sustainable
aquaculture development, supported by institutional, legal and financial instruments, enabling
the start of the process of integration into the national economy of various areas of
aquaculture production and related activities.

In order to prevent aquaculture development from being affected by disputes over

exploitation rights, the Ministry of Aquaculture and Fisheries Resources prepared the
National Master Plan for Aquaculture and Fisheries Development, based on a territorial
division for both its administrative organization and for its economic organization, on axes of
economic activity defined based on biogeographic variations. It identified seven axes of
economic activities
Axis A: Diversified aquaculture.
Axis B: Inland aquaculture.
Axis C: Marine aquaculture.
Axis D: Inland aquaculture.
Axis E: Aquaculture integrated into farming and mariculture.
Axis F: Aquaculture integrated into the agricultural activity.
Axis G: Support aquaculture.

SPECIES
In addition to the fisheries in reservoirs of endemic species (mainly: Liza aurata, Solea
vulgaris, Dicentrarchus labrax , Sparus aurata , Lithognathus mormyrus, Anguilla anguilla ,
Diplodus sargus, Epinephelus aeneus, Thynnus thynnus, Thynnus thynnus, Barbus barbus ),
the main aquaculture activities included planting in natural or artificial bodies of water with
introduced species. The introduced species are: Cyprinus carpio , Gambusia
halbrooki, Oncorhynchus mykiss , Tinca vulgaris, Leuciscus erythrophthalmus, Tilapia zillii,
Micropterus macrochir, Crassostrea gigas ,Mytilus galloprovincialis , Hypophthalmichthys
nobilis , Hypophthalmichthys molitrix  ,, Ctenopharyngodon idellus , Stizostedion pike perch and
Silurus glanis. In order to develop inland fisheries and integrated aquaculture into agricultural
activities, the Ministry recently imported Hypophthalmichthys molitrix and Oreochromis
niloticus from Egyptfrom Hungary. More than 90 percent of the fishery production in inland
waters are common carp ( Cyprinus carpio ) and Chinese carp ( Aristichthys nobilis,
Hypophthalmichthys molitrix, and Ctenopharyngodon idella ).
There are 20 major fishing ports along the 1 280 km coastline of Algeria. The continental
shelf is approximately of 13 700 km2 and the fishing zone is of about 95 000 km2.
In 2016 the total of recorded vessels operating from these ports was estimated at 5 024 from
which 552 were trawls and 1 295 purse seiners. 

Marine capture production was quite stable between 93500 and 105600 tonnes in the 2010-
2016. Bulk of the catches are small pelagic species. No inland catches are reported. 

Aquaculture production is still marginal with the production of around 1400 tonnes in 2017,
consisting of carps grown in freshwater, gilthead seabream and seabass
from brackishwater and a very small amount of mussels. Most of the harvest is sold fresh in
local markets. Currently, Algeria is teaming up with an Asian country in an effort to develop
marine shrimp seed production and grow-out culture in the country. 

Exports of fish and fishery products are rather limited and decreased by 57 percent in the
period 2008–2013, due to declining catches. From 2014, exports started increasing again,
reaching USD 9.5 million in 2017. During the period 2008-2016, Algeria’s imports of fish
and fishery products increased by 250 percent, reaching USD 123.7 million in 2017. The
annual consumption per capita is rather low, at an estimated 3.9 kg in 2017.  

In Algeria, employment in 2017 was estimated to be 4 487 people in aquaculture, with nearly

half women, while for the fisheries sector 48 100 people were reported in 2015.