Oran – With its vast desert expanses, fertile northern plains, and exceptional sunshine, Algeria has all the assets to become a global agricultural powerhouse. Yet, the country remains largely dependent on imports to feed its population. In 2022, agri-food imports reached $10.7 billion, accounting for 50% of the country’s food needs. Faced with this reality, authorities and private investors are beginning to turn to the agricultural sector, seen as a key pillar for economic diversification and food security.
A Complex but Promising Context
Algeria’s agricultural sector contributes 12% to GDP and employs nearly 20% of the active population. However, only 3% of the country’s 2.38 million km² is arable, primarily concentrated in the north. The High Plateaus and the Sahara, though semi-arid, offer promising niches, particularly for date cultivation and camel farming.
But the major challenge remains water. With only 500 m³ of water available per inhabitant per year—well below the UN-defined scarcity threshold—Algeria must innovate to optimize its resources. Currently, only 8% of agricultural land is irrigated, a situation that severely limits productivity.
Public Policies: A Necessary Boost
To revive the sector, the government has implemented several strategies, including the National Agricultural Development Plan (PNDA) and the Agricultural and Rural Renewal Strategy (SRRA 2020–2024). These plans aim to modernize infrastructure, develop agribusiness, and attract private investors.
Key measures include tax exemptions for projects in rural areas, the allocation of 5 million hectares of agricultural land for public-private partnerships (PPPs), and subsidies for solar greenhouses and drip irrigation systems.
A concrete example of these efforts is the Hassi Ameur project in Timimoun, a 1,000-hectare pilot farm using solar energy for irrigation. This project, carried out in partnership with private investors, illustrates the potential of PPPs in the agricultural sector.
Promising Sectors: Where to Invest?
Several niches offer attractive opportunities for local and foreign investors:
- Saharan Agriculture: Thanks to desalination technologies and climate-controlled greenhouses, regions like Biskra and Ouargla are already producing early-season crops (tomatoes, peppers) for export to Europe and sub-Saharan Africa.
- Agribusiness: The transformation of dates—of which Algeria is the world’s 5th largest producer—into derived products (syrups, vinegars) and olive oil production (capacity of 200,000 tons per year) offer high margins.
- Renewable Energy: Combining agriculture and solar power (agrivoltaics) helps reduce energy costs, particularly for hydraulic pumping.
Challenges to Overcome
Despite these opportunities, several obstacles hinder the sector’s development:
- Logistical Constraints: Inadequate transport networks and cold storage facilities lead to post-harvest losses estimated at 30%.
- Business Environment: Bureaucracy, delays in permit issuance, and legal ambiguities over land ownership discourage foreign investors.
- Climate Change: Advancing desertification and declining rainfall (-20% since 2000) require urgent adaptations.
- Prospects: Toward Resilient and Innovative Agriculture
To address these challenges, several avenues are being considered: - Organic Agriculture: Although still in its infancy, this niche meets growing European demand. A “Bio Algeria” label is under development.
- Innovative Financing: Green bonds and sovereign funds could finance climate-resilient projects.
- Regional Integration: Thanks to its strategic position between Europe and Africa, Algeria could become an agro-export hub, particularly through the African Continental Free Trade Area (AfCFTA).
Algeria stands at a decisive turning point. By modernizing its agricultural sector, the country could not only reduce its reliance on imports but also create 2 million jobs by 2030. To achieve this, synergy between institutional reforms, private capital, and innovation is essential.
With the right policies and strategic investments, Algeria has the potential to become a leading regional player in agribusiness. The question remains whether authorities and investors will seize this historic opportunity.
By Omar Haran – 16.02.2025
About the Author: Omar Haran is a specialist in economic and agricultural issues, with particular expertise in emerging markets.
