ISS African Futures

This report conclusion by the Institute for Security Studies evaluates the development trajectory of Algeria, identifying systemic barriers to prosperity and proposing a multi-sectoral policy framework to leverage the country's natural resources and human capital for sustainable growth.

• Algeria's potential as a global economic player remains unfulfilled due to a combination of dependency on hydrocarbons, a complex socio-political history, and a large desert area. The 'Current Path' analysis indicates that development is being hindered by weak governance, poor agricultural yields, and inadequate health systems.
• Current forecasts suggest Algeria will fail to meet the Sustainable Development Goals (SDGs) regarding the prevention of deaths for newborns and children under five by 2030. Additionally, while the country possesses a favorable ratio of working-age population to dependents and low population growth, unemployment levels remain high.
• To achieve sustainable growth, the report recommends that the Algerian government prioritize agricultural productivity to ensure food security through climate-smart technologies and better land-use management. It also suggests liberalizing the economy to reduce the size of the informal sector, as most banks and major businesses are currently state-controlled.
• Economic diversification is identified as a critical necessity to reduce hydrocarbon dependency. The report suggests promoting manufacturing, services, and agriculture, while attracting Foreign Direct Investment (FDI) and Research and Development (R&D) into natural capital, including mineral resources (uranium, helium, iron) and renewable energy (geothermic, wind, solar).
• The report advises the Algerian ministry of trade and export promotion to expand export markets for domestic goods by refining and accelerating the National Vision Plan in alignment with the AfCFTA. Other recommended improvements include digitizing tax revenue mobilization, expanding rural electricity and digital infrastructure, and implementing a National Health Insurance Scheme.

APA

Institute for Security Studies (n.d.). ISS African Futures. https://futures.issafrica.org/geographic/guide.pdf?geography=DZ&topic=05-conclusion

Chicago

Institute for Security Studies. ISS African Futures. n.d. https://futures.issafrica.org/geographic/guide.pdf?geography=DZ&topic=05-conclusion.

Wikipedia

{{cite report |author=Institute for Security Studies |title=ISS African Futures |url=https://futures.issafrica.org/geographic/guide.pdf?geography=DZ&topic=05-conclusion |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforsecuritystudiesndiss, author = {{Institute for Security Studies}}, title = {{ISS African Futures}}, institution = {Institute for Security Studies}, url = {https://futures.issafrica.org/geographic/guide.pdf?geography=DZ&topic=05-conclusion}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }