Share the page
Algeria
Located at the heart of the Maghreb, Algeria has several strong assets: a strategic geographic position, significant hydrocarbon resources, and a young population. However, the country now faces several challenges, including reducing its dependence on hydrocarbons, boosting value creation, and addressing environmental threats. A long-standing partner, AFD supports Algeria in developing human capital, fostering economic diversification, advancing a low-carbon transition, and protecting the environment.
Context
Covering an area of over two million km2, Algeria is the largest country in Africa and in the Arab world. As a gateway to the African continent, Algeria has an ideal strategic position, opening onto the Mediterranean basin and, therefore, Europe. By extension, and thanks to the richness of its energy sources, it holds a certain influence over the different regional groups to which it belongs.
Algeria has been able to diversify its economy by reforming its agrarian system and modernizing its heavy industry. That said, hydrocarbons still represent almost all of the country's exports, seeing as the country is a key producer of natural gas and oil. This economic orientation is a major challenge: Algeria needs to reduce its dependence on hydrocarbons by relaunching its economic growth and promoting the development of sustainable cities.
Present in Algeria since 1968, AFD supports the country in its economic, energy, and urban development projects. It operates in “Group” format, alongside Proparco, its private sector financing arm, and Expertise France, the interministerial agency for technical cooperation. AFD Group mobilizes grants to support knowledge production, the deployment of expertise, technical assistance programs, capacity building, and civil society-led initiatives. It is also able to offer concessional loans and guarantees. In addition, the Group manages programs funded through European Union delegated funds.
AFD's Algeria office is directly attached to the North Africa regional office in Casablanca.
Our approach
AFD and Algeria: supporting sustainable growth
Algeria is promoting skills development across its workforce. In this context, AFD Group supports Algerian ministries and public operators in strengthening staff capacities and implementing ambitious transformation projects.
AFD also supports Algerian local authorities through a major capacity-building program for senior officials focused on asset management and enhancement, as well as urban planning.
Urban mobility is a fundamental aspect of daily life for residents of Algeria’s major cities. Improving urban planning and transport systems, while implementing a sustainable city policy, also supports a low-carbon development pathway. At the request of the Ministry of Transport, AFD worked with Entreprise Métro d’Alger on a preliminary design for a multimodal transport hub at the Haï el-Badr metro station. The study also included the development of a methodological guide to support the planning and design of similar hubs.
In 2020, the Algerian government adopted a new energy transition program focused on preserving and enhancing fossil fuel resources, transforming energy production and consumption models, developing green energy, and protecting the environment. AFD supports the country’s energy transition by assisting the Ministry of Energy and Mines in strengthening its capacity to use technical and macroeconomic modeling tools for energy sector scenarios through 2050.
AFD also provides expertise to Algerian energy operators through a feasibility study on hybridizing thermal power plants in the Greater South region, for the benefit of Sonelgaz Renewable Energies.
Economic diversification is a key challenge for Algeria’s sustainable development. AFD Group is supporting the country in implementing programs that combine economic diversification, environmental protection, and the creation of sustainable jobs. Several projects are currently underway with funding from the European Union:
- Expertise France is implementing Algeria’s Blue Economy Strategy, with a focus on research, entrepreneurship and innovation, socio-economic support for fishers, and maritime surveillance. The technical cooperation agency is also supporting the Agricultural Sector Support Program (PASA), which aims to lay the groundwork for sustainable olive cultivation in the Soummam Valley.
-
The protection of biodiversity and natural resources is central to AFD’s work in Algeria. The agency has supported several ambitious projects focused on protecting coastlines, forests, and promoting agroecology:
- AFD supported the creation of protected areas on the Habibas Islands near Oran, and in the Taza National Park and surrounding islets near Jijel. In Kouali coves and the Habibas Islands, it backed an integrated management model for coastal and marine areas, including sustainable financing mechanisms benefiting local communities and marine and coastal ecosystems. AFD also provided technical expertise to the Ministry of Environment to combat land-based pollution in the Gulf of Ghazaouet.
- In partnership with the General Directorate of Forests, AFD implemented a project focused on Mediterranean forest ecosystems in the Senalba forests (Djelfa) and the Chréa forest (Blida). The project teams analyzed the effects of climate change on forest areas and developed strategies to mitigate those impacts while enhancing the value of these ecosystems.
AFD also supports civil society organizations involved in environmental protection, agroecology, and rural community support.
In the field
Below, find the country's projects, news, publications, and contact details in one click.
