Stagnation or Growth? Algeria’s development pathway to 2040

This conclusion section of a special report by the Institute for Security Studies analyzes the economic and political challenges facing Algeria. It argues that the country requires a comprehensive overhaul of its governance and economic structures—specifically moving away from hydrocarbon dependence and improving human capital utilization—to achieve inclusive development and growth by 2040.

• Algeria's economic system is hindered by a bloated bureaucracy, lack of diversification, and an overreliance on hydrocarbons, which has left the country vulnerable following the collapse of oil prices since 2014 and the COVID-19 pandemic.
• Despite having a good stock of human capital, Algeria has not fully realized the benefits of its population structure because the higher education system does not align with labor market needs.
• The report recommends several strategic shifts to ensure future growth, including diversifying the economy away from hydrocarbons, promoting food security to reduce reliance on imports, and transitioning to solar and wind energy.
• Regional economic integration, specifically through the African Continental Free Trade Area and the Arab Maghreb Union, could potentially increase economic growth by approximately one percentage point for each Maghreb country in the long term.

APA

Cilliers, J., & Kwasi, S. (2022). Stagnation or Growth? Algeria’s development pathway to 2040. Institute for Security Studies. https://futures.issafrica.org/special-reports/guide.pdf?report=country/algeria&topic=14-conclusion

Chicago

Cilliers, Jakkie, and Stellah Kwasi. Stagnation or Growth? Algeria’s development pathway to 2040. Institute for Security Studies, 2022. https://futures.issafrica.org/special-reports/guide.pdf?report=country/algeria&topic=14-conclusion.

Wikipedia

{{cite report |last1=Cilliers |first1=Jakkie |last2=Kwasi |first2=Stellah |title=Stagnation or Growth? Algeria’s development pathway to 2040 |publisher=Institute for Security Studies |date=28 June 2022 |url=https://futures.issafrica.org/special-reports/guide.pdf?report=country/algeria&topic=14-conclusion |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cilliers2022stagnation, author = {Cilliers, Jakkie and Kwasi, Stellah}, title = {{Stagnation or Growth? Algeria’s development pathway to 2040}}, institution = {Institute for Security Studies}, year = {2022}, month = jun, url = {https://futures.issafrica.org/special-reports/guide.pdf?report=country/algeria&topic=14-conclusion}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }