Agreements Signed to Boost Agricultural Financing Across Algeria
Last Thursday, a landmark set of agreements was formalized between the Departments of Finance, Agriculture, Rural Development, and Fisheries, alongside public banks, aimed at broadening access to financing for agricultural projects. According to an official statement from the Ministry of Finance, these agreements are part of the implementation of a master agreement signed on December 4, 2023, by the Ministries of Finance and Agriculture, along with the Association of Banks and Financial Institutions. The overarching goal is to extend financing options for agricultural projects to all banks operating within the financial sector.
The signing ceremony aligns with a directive issued by the President of the Republic during the commemoration of the 50th anniversary of the National Union of Algerian Farmers last November. This directive mandates that all public financial institutions provide funding for the agricultural sector without exception. In this context, the ministers underscored that expanding bank financing for agriculture “will play a pivotal role in realizing the national strategic plan for crop development and achieving the state’s objectives in enhancing food security.” The initiative will empower farmers and investors by offering loans under favorable conditions, enabling them to launch or expand their operations.
Mohamed Khiati, an expert in agronomy, told our team that “financing remains one of the cornerstone factors in initiating and sustaining agricultural activities.” He emphasized that “it is not just a resource but a catalyst that benefits farmers, investors, and project holders while supporting the broader implementation of agricultural policies.” Khiati further noted that widening the network of participating banks “should ease the financial constraints faced by different segments of the agricultural community and streamline the bureaucratic hurdles they often encounter.”
Abderrahmane Hadef, an economist, added that making agricultural credit more accessible and better aligned with the sector’s specific needs represents “a significant leap forward in modernizing and revitalizing national agriculture.” He pointed out that adequate financing “is essential for transforming the agricultural landscape, allowing farmers to invest in advanced technologies, boost productivity, and build resilience against climatic and economic uncertainties.”
By involving a larger number of banking institutions, the agreement ensures a more diversified and flexible range of financial products tailored to the diverse needs of the agricultural sector. This collaboration between the banking sector and agricultural stakeholders reflects a holistic approach to bolstering national agricultural production—a critical step toward reducing reliance on imports and securing the country’s food sovereignty.
In essence, these agreements mark a turning point in Algeria’s efforts to strengthen its agricultural sector, positioning it as a cornerstone of economic stability and self-sufficiency. As experts suggest, this move could unlock new opportunities for growth and innovation across rural communities, ultimately contributing to a more resilient and prosperous future for the nation.
