Stagnation or Growth? Algeria’s development pathway to 2040

The report concludes that Algeria faces significant economic stagnation due to a bloated bureaucracy, heavy dependence on hydrocarbons, and political instability. It recommends a transition toward a diversified economy, improved education quality, and a shift toward renewable energy to ensure long-term growth and food security.

• Algeria's economic system is hindered by a lack of diversification, an overregulated business environment, and a heavy reliance on hydrocarbons, which has left the country vulnerable to oil price fluctuations and dwindling foreign reserves.
• The country's education system is currently incompatible with labour market needs, and the quality of education is deteriorating due to issues with languages of instruction and subject matter levels.
• Algeria faces significant environmental and resource pressures, including water stress and a high reliance on food imports, which exposes the nation to international commodity price volatility.
• There is significant potential for Algeria to reduce its hydrocarbon dependence by fast-tracking the shift to solar and wind energy and cutting fossil fuel subsidies.
• Regional economic integration, specifically through the African Continental Free Trade Area and the Arab Maghreb Union, could 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} }