International Praise for Algeria’s Economic Trajectory: Investment Reforms, Diversification Deliver Tangible Results

Speaking on the eve of her participation in an international economic conference in Algiers, organised in partnership with the Bank of Algeria, Georgieva highlighted that the adoption of the new Investment Law and the Real Estate Law, alongside the establishment of the Algerian Investment Promotion Agency, marked a qualitative shift in improving the business climate and attracting both domestic and foreign capital. She also underscored the growing role of public administration digitalisation in simplifying procedures and strengthening transparency.

The IMF Managing Director noted that these institutional reforms have been accompanied by a remarkable improvement in non-hydrocarbon exports, which have more than doubled over the past five years. This development, she stressed, reflects the beginning of a gradual disengagement from oil rent dependency—one of the most persistent structural challenges that has long constrained the Algerian economy.

At the macroeconomic level, Georgieva affirmed that Algeria has demonstrated a clear capacity for recovery in the post-Covid-19 period, supported by large-scale public investment programmes, particularly in infrastructure. She pointed to the return of growth rates to a positive trajectory alongside a noticeable decline in inflation levels. In her assessment, directing public spending toward digital infrastructure, transport and energy sectors enhances economic competitiveness and supports sustainable wealth creation over the medium term.

Looking ahead, Georgieva observed that Algeria stands at the intersection of “simultaneous opportunities and challenges.” She explained that rapid technological transformations align closely with Algeria’s strategic bet on digitalisation, while the ongoing reconfiguration of global supply chains opens new prospects for attracting industrial investment and deepening trade integration. She also highlighted the country’s vast potential in renewable energy, notably solar power and green hydrogen projects.

The IMF chief further noted that expanding internet access and investing in the digital economy have helped create a favourable environment for start-ups, while major projects in ports, railways and logistics are expected to reduce trade costs and delivery times. Such developments, she said, strengthen Algeria’s positioning within regional and global value chains.

In the energy sector, Georgieva considered that the combination of Algeria’s longstanding expertise in hydrocarbons and its growing investments in clean energy qualifies the country to play a pivotal role as a regional energy hub. She pointed to opportunities in electricity interconnection, renewable energy development and green hydrogen projects, all of which support industrial development, technology transfer and job creation.

Against a regional and international backdrop marked by heightened geopolitical risks and disruptions in global trade, Georgieva stressed that strengthening economic cooperation and regional integration in North Africa has become a strategic necessity, capable of enhancing economic resilience and delivering more diversified and sustainable growth.

She concluded by noting that her first visit to Algeria represents an opportunity to deepen the partnership between Algeria and the International Monetary Fund, in light of what she described as the country’s “strong economic performance”—an assessment that signals a notable shift in the outlook of international financial institutions toward Algeria’s economic trajectory.