AGP Executive Report

IMF Watch: The IMF says Algeria’s foreign exchange reserves could slide from $51bn (2025) to $46.5bn (2026), then sharply to $19.8bn by 2031, driven by large fiscal deficits, weaker hydrocarbon exports, and reliance on central-bank financing—cutting import cover from 8.6 months to 3.3. Hydrocarbons Diplomacy: In Niamey, Hydrocarbons Minister Mohamed Arkab reaffirmed Algeria’s readiness to back Niger’s oil and gas development, including Sonatrach work on the Kafra block and progress on the Trans-Saharan Gas Pipeline. Green Hydrogen Push: German firms signaled interest in Algeria’s SoutH2 Corridor green hydrogen project, with B2B talks in Algiers focused on energy storage and hydrogen supply-chain support. Cement Exports & Port Upgrade: Algeria exported 15,000 tons of cement and clinker via the Port of Ténès to Europe, while the Ministry of Foreign Trade and Export Promotion pushes broader African market expansion for cement. Agribusiness Irrigation Deal: DALTEX partnered with China’s Irritech to expand advanced irrigation solutions across Egypt, Algeria and Libya. Security/Connectivity Talks: Foreign Minister Ahmed Attaf met European counterparts at the UN General Assembly, while Bulgaria’s foreign minister highlighted connectivity and secure transport links. WTM Africa 2027: Buyer registration opened for the April 2027 event in Cape Town, with North Africa representation including Algeria.

Energy Diplomacy: Algeria’s Hydrocarbons Minister Mohamed Arkab begins a two-day working visit to Niger to advance bilateral energy partnerships, including the Trans-Saharan Gas Pipeline (TSGP) and Sonatrach exploration progress in Niger’s Kafra and Bilma blocks. Gas Efficiency & Cooperation: Energy Minister Mourad Adjal chaired talks on rationalizing gas consumption and strengthening African energy cooperation, focusing on efficiency mechanisms and shared monitoring protocols. Green Hydrogen Push: German firms show strong interest in Algeria’s SoutH2 Corridor, with companies discussing hydrogen production, desalination support, and energy storage for exports to Europe. Cement Exports & Trade: Algeria’s Port of Ténès loaded three vessels with 15,000+ tons of cement and clinker for Europe, while Trade Minister Kamel Rezig met cement producers to boost export performance and diversify destinations across Africa, Asia, the Americas and the Caribbean. Industrial Localization: Algeria’s Industry Ministry urged vehicle makers to localize plastic components, coordinating with General Plastic Injection (GPI) in Tissemsilt to supply molds and parts for assembly plants. Education Digital Shift: Algeria’s higher education ministry says the 2026–2027 academic year will start with AI and digital transformation integrated into university registration and expanding into coursework.

Cement Exports: Algeria’s Port of Ténès loaded three vessels in one operation, shipping 15,000 metric tons of cement and clinker to Europe, as authorities push non-hydrocarbon exports. Trade Push: Foreign Trade Minister Kamel Rezig met domestic cement producers to review first-half 2026 export results and expand sales across Africa, with new targets in Asia, the Americas and the Caribbean. Green Hydrogen Dealmaking: German energy firms signaled interest in Algeria’s SoutH2 Corridor, with companies discussing hydrogen production support and energy storage partnerships. Energy Cooperation: Energy Minister Mourad Adjal chaired talks on rationalizing gas consumption and strengthening African energy cooperation and monitoring. Hydrocarbons Diplomacy: Commissioned by President Tebboune, Hydrocarbons Minister Mohamed Arkab begins a two-day visit to Niger to track joint projects including the Trans-Saharan Gas Pipeline and Sonatrach exploration blocks. Industrial Localization: Industry Minister Farid Kourtel urged Algerian vehicle makers to localize plastic components, directing coordination with GPI in Tissemsilt to supply parts for assembly plants. Automotive Cluster: Algeria is also reported to be planning a $2.3bn automotive cluster. Germany’s Pivot: Germany is expanding its economic footprint in Algeria in energy, automotive and pharmaceuticals as French presence retreats, supported by recent contracts and rising trade. Education & Skills: The 2026–2027 academic year is set to start with AI and digital transformation themes, while schools report readiness after fire damage in affected wilayas.

Agriculture Policy: President Tebboune ordered drafting a more effective agricultural framework law, including mechanisms to allocate cultivated areas for annual crops based on need. Automotive Localization: Industry Minister Farid Kourtel met Algerian vehicle makers to speed up local production of plastic components, with GPI in Tissemsilt set to manufacture parts if molds are supplied by manufacturers—aimed at raising integration and subcontracting. Energy & Trade Risks: Oil prices slid for a third straight session as Saudi works to restore disrupted exports and pipeline capacity, but markets still worry about tight physical crude supplies and Strait of Hormuz shipping risks. Gas Security for Industry: Europe heads into winter with low gas storage and LNG competition, raising the odds of higher energy bills and demand cuts that can hit businesses. Fertilizer Cooperation: Bangladesh’s foreign ministry pushed for stronger fertilizer ties with Algeria to support food security, while also seeking deeper energy and agriculture cooperation. Regional Energy Strategy: Algeria’s push to grow influence in Africa is tied to energy deals, including aviation fuel exports to Niger and ongoing oil exploration activity. Shipping & Ports: Ukraine’s ports face continued strikes, disrupting commercial vessels and raising global food-supply concerns.

Automotive Localization: Algeria’s Industry Ministry met vehicle makers to speed up local production of plastic components, with GPI (ACS Group) in Tissemsilt set to manufacture parts for assembly plants once molds are supplied—aiming to raise integration and subcontracting. Education Readiness: The education ministry says the 2026–2027 school year is fully ready, including repairs after recent fires in Jijel and Béjaïa, plus inaugural lessons linking environment and health. Fertilizer & Food Security: Bangladesh’s foreign ministry officials urged stronger fertilizer cooperation with Algeria to support food security, alongside talks on energy, agriculture, shipbuilding and pharmaceuticals. Energy & Shipping Risk: Iran and Oman agreed on a safe shipping lane through the Strait of Hormuz while Iran also set conditions for US talks amid wider Yemen/Red Sea tensions. Oil Market Pressure: Reports say Saudi Aramco will not supply some European buyers with October crude, pushing refiners toward US crude/diesel as US emergency reserves hit a multi-decade low. Regional Industry Watch: Algeria’s push to grow influence in Africa via energy continues, including cooperation linked to Niger’s oil sector and infrastructure.

BRICS and Africa’s leverage: The 18th BRICS Summit in New Delhi put a stronger African voice at the center, with South Africa, Egypt and Ethiopia taking part in leaders’ deliberations and pushing for more intra-BRICS trade, investment and industrialisation. Energy and shipping security: Iran and Oman agreed on a safe shipping lane through the Strait of Hormuz, while wider Gulf tensions and Yemen escalation keep pressure on Red Sea and Bab el-Mandeb routes that matter for regional hydrocarbon flows. Algeria’s regional energy push: Algeria is expanding influence in Africa through energy deals, including aviation fuel exports to Niger and drilling activity linked to Sonatrach and ENAFOR, reinforcing Sahel partnerships. Hydrocarbons infrastructure interest: EIL is eyeing about $1bn in pipeline and strategic oil reserve projects in Saudi Arabia and the UAE to bypass Hormuz—an opportunity that signals continued Gulf infrastructure demand. Industry and trade signals: Algeria faces trade friction as duties are reported on Algerian steel rod imports, while Algeria’s construction of a 136 MW power plant in Tamanrasset highlights ongoing energy investment.

Energy & Trade Security: Algeria’s push to grow influence in Africa is showing up in energy deals, including aviation fuel exports to Niger from the Adrar refinery and new drilling activity in Niger’s Kafra basin, as Algeria seeks a stronger Sahel footprint. Regional Shipping Risk: With tensions around the Red Sea and Bab el-Mandeb rising, analysts warn Houthis’ advances could disrupt maritime traffic and push insurance and shipping costs higher, adding pressure to energy routes. Diplomacy & Regional Stability: Algeria’s diplomatic posture is also in focus after it severed ties with the UAE and closed its airspace, while broader Sahel instability is pushing Algeria to revisit its non-intervention doctrine. Industry & Infrastructure: Engineers India Ltd (EIL) is scouting pipeline and strategic storage projects in Saudi Arabia and the UAE to bypass Hormuz—an opportunity signal for cross-border energy infrastructure planning that could ripple into regional contractors and logistics. Algeria–Belarus Cooperation: Algeria met Belarus’ parliamentary leadership, with talks highlighting cooperation prospects in agriculture, industry, education, health, and pharmaceuticals.

Energy & Infrastructure: Algeria’s energy diplomacy is moving fast: Minister Mourad Adjal reiterated in Vienna that colonial-era nuclear-test states must take historical responsibility, while Algeria also pushes renewable growth and energy partnerships across Africa. Oil & Gas Security: With the Red Sea and Bab el-Mandeb under pressure from Houthi advances, Algeria’s regional energy posture is increasingly tied to shipping risk and infrastructure resilience. Regional Cooperation: Algeria is deepening ties with Belarus, with Tebboune receiving the Belarusian Council speaker and the Prime Minister holding talks, including cooperation themes spanning agriculture, industry, education, health and pharmaceuticals. Mining & Industry Links: Algeria’s industrial reach is also visible in mining cooperation talks with South Africa and broader Sahel energy deals, including aviation fuel exports to Niger and drilling activity in Niger’s Agadez region. Trade & Manufacturing: Commerce developments include duties on Algerian steel rod imports, while Algeria’s industrial zones face execution delays such as the El Kseur–Fenaïa industrial zone in Béjaïa.

Algeria–Belarus Economic & Industrial Cooperation: President Abdelmadjid Tebboune received Belarus Council Speaker Natalia Kochanova, with talks also involving Algeria’s Industry and Agriculture ministers; Kochanova said Belarus is ready to expand cooperation across economic, commercial, scientific and technical fields, including agriculture, industry, education, health and pharmaceuticals. Energy & Renewables Diplomacy: Energy Minister Mourad Adjal reiterated Algeria’s call in Vienna for states responsible for colonial nuclear tests to take historical, moral and legal responsibility, while also holding bilateral meetings on the sidelines of the IAEA General Conference. Africa Energy Strategy: A new push to grow Algeria’s influence in Africa is highlighted through energy partnerships, including aviation fuel exports to Niger and drilling activity in Niger’s Kafra basin—showing Algeria’s mix of trade and engineering reach. Shipping & Security: A man in his 40s was arrested after six people were found inside a sealed container at Rosslare Europort, believed to be Algerian, underscoring ongoing risks in containerized logistics. Food & Poultry Health: Coverage notes wider adoption of avian influenza vaccination strategies globally, relevant to poultry production and food security planning. Industry Supply Chains: The U.S. finalized countervailing duties on carbon and alloy steel wire rod imports from Algeria, a potential headwind for Algerian metal exporters.

Energy & Renewables: Algeria’s Energy Minister Mourad Adjal renewed in Vienna the call for states responsible for colonial-era nuclear tests to assume historical, moral and legal responsibility, while also pushing Algeria’s fast-growing renewables and green hydrogen agenda ahead of the IAEA General Conference. Power Projects: Algeria is moving ahead with construction of a 136 MW power plant in Tamanrasset, signaling continued investment in domestic generation capacity. Industrial Policy & Trade: The U.S. finalized countervailing duties on carbon and alloy steel wire rod imports from Algeria, a move that could reshape Algeria’s access to the U.S. market. Oil & Shipping Risk: With Houthis escalating near Bab el-Mandeb, maritime traffic and insurance costs are rising, keeping Red Sea-linked logistics a live risk for North Africa’s energy and trade flows. Regional Diplomacy with Economic Spillovers: Algeria’s Vienna diplomacy also featured bilateral engagement around the IAEA, while broader North Africa realignments continue to affect investment and aviation links across the region. Mining & Critical Minerals: Algeria’s mining cooperation talks with South Africa are set to advance, aligning with the wider scramble for minerals and energy security.

Algeria Power Build-Out: Sonelgaz has started construction of a 136 MW combined-cycle power plant in Tit, Tamanrasset, aimed at cutting southern reliance on diesel and supplying about 200,000 households, with a 30-month timeline and a 220 kV transmission link to the national grid. Industrial Zones Under Pressure: Béjaïa’s El Kseur–Fenaïa industrial zone is running behind schedule, with missing road access and utility networks (electricity and water) flagged as key blockers for new investors. Steel Trade Friction: The U.S. has finalized countervailing duties on Algerian carbon and alloy steel wire rod imports, citing subsidy benefits. Nuclear Accountability: Energy Minister Mourad Adjal renewed Algeria’s call from Vienna for states responsible for colonial-era nuclear tests to take historical, moral, and legal responsibility for lasting impacts. Regional Energy Risk Watch: Saudi’s East-West pipeline shutdown after drone attacks is raising fresh concerns for Europe’s oil security, with Red Sea routes again under strain. Mining Cooperation: Algeria and South Africa are set to sign a mining cooperation agreement, signaling continued push for cross-border resource partnerships. Maritime Cyber Risk: U.S. agencies are tracking cyber threats against nearly 20 shipping vessels worldwide, underscoring growing digital exposure in logistics.

Power & Infrastructure: Algeria has started construction of a 136 MW combined-cycle power plant in Tit, Tamanrasset, aiming to cut diesel reliance and supply about 200,000 households, with a 220 kV link to the national grid. Industrial Zones: Béjaïa’s El Kseur–Fenaïa industrial zone is running behind schedule, with gaps in roads, electricity and water raising risks for investors. Hydrogen & Cross-border Energy: Switzerland rejected federal backing for Transitgas’s 292 km Alpine hydrogen pipeline network, citing unclear demand and supply risks from North Africa, reshaping the Alpine Hydrogen Corridor timeline. Hydrocarbons Partnerships: Qatar’s Power International Holding is exploring new cooperation with Sonatrach across upstream, downstream, refining, petrochemicals and LPG, with Algeria inviting participation in its upcoming bid round. Food & Dairy Manufacturing: Giplait and Belarus’s Bellakt signed a protocol to set up a joint venture for infant milk production in Algeria, while the Baladna project gets renewed coordination support from Algeria’s industry ministry. Trade & Supply Chains: Fiat El Djazaïr partnered with Biskra’s Pétro Baraka to expand lubricants for Fiat’s after-sales network, boosting local sourcing. Energy Market Shock: LNG and oil markets are tightening as Red Sea and Saudi pipeline disruptions push buyers toward alternatives, with Algeria positioned as a stronger LNG option. Security & Human Cost: An Algerian helicopter strike reportedly killed 48 gold miners at the Niger border, highlighting the risks faced by informal workers in cross-border operations. Governance & Industry Climate: Algeria’s push for AI strategy implementation continues via new committees, while broader industrial policy and quality management updates (ISO 9001:2026) signal tighter standards for firms.

Power & Infrastructure: Algeria has started construction of a 136 MW combined-cycle power plant near Tit in Tamanrasset, aiming to cut reliance on diesel generation and supply about 200,000 households, with a 220 kV link to the national grid. Industrial Zones: Béjaïa’s El Kseur–Fenaïa industrial zone is facing delays, with gaps in roads and utilities (electricity and water) flagged by a local inspection. Hydrocarbons & Partnerships: Algeria is exploring nuclear energy for electricity and desalination with IAEA support on small modular reactors, while Qatar’s PIH is in talks with Sonatrach/UCC Holding on upstream, downstream, transport, refining and LPG/petroleum products. Energy Security & Trade: The Red Sea risk is pushing oil prices higher after attacks disrupt Saudi export routes, while LNG supply shocks are boosting demand for African gas alternatives where Algeria is among the key players. Food & Dairy Industry: Giplait and Belarus’s Bellakt signed a protocol to set up a joint venture for infant milk production in Algeria, and the Industry Ministry reaffirmed support for the Baladna infant milk project to reduce the import bill. Diplomacy & Business Climate: Algeria’s airspace ban and severed ties with the UAE deepen a regional power clash that could also affect investment flows and cross-border business.

Algeria-UAE Rift Deepens: Algeria imposed a full airspace ban on UAE-registered civilian and military aircraft from Sept. 11, while allowing direct commercial flights to Algiers until end-2026, after Algiers severed diplomatic ties over “provocative and hostile actions.” Hydrocarbons & Trade: Algeria’s Hydrocarbons Minister Mohamed Arkab met Qatar’s Power International Holding CEO to discuss deeper Sonatrach cooperation across upstream/downstream, transport, refining, petrochemicals and LPG, with an invitation to join Algeria’s 2026 bid round. Pharma Regulation: Algeria’s ANPP tightened rules for pharmaceutical investments, limiting product numbers per specialization and expanding digital oversight—aimed at boosting domestic production and giving authorities more control. Digital & Industry Skills: Algeria pushed AI sovereignty at a Riyadh ethics forum, calling for capacity-building and an international governance framework. Training for Infrastructure: Public Works and Vocational Training coordinated to align skills with major projects, including key rail lines and the Annaba phosphate port expansion. Energy Market Pressure: Red Sea and pipeline disruptions kept crude prices elevated, with Saudi shipment cuts to Europe and Bab el-Mandeb risks reshaping crude sourcing plans. SME Innovation: WIPO and INAPI launched the second “Nadjahi” IP program for agrifood SMEs, backing 13 firms to strengthen innovation and competitiveness.

Hydrocarbons Diplomacy: Minister Mohamed Arkab met Qatar’s Power International Holding CEO to discuss deeper upstream/downstream cooperation, LPG and petrochemicals, and participation in Algeria’s 2026 bid round. Pharma Partnerships: Algeria and Oman held virtual talks to strengthen pharmaceutical cooperation, with Saidal and ANPP involved. Pharma Investment Rules: ANPP tightened regulations for pharmaceutical investments, including limits on products per specialization and a push for more digital oversight. Payments & Digital Economy: A CNESE conference in Algiers spotlighted electronic payments as a pillar for faster, safer commerce and financial inclusion. Public Works & Skills: Public Works and Vocational Training ministries coordinated on training for major infrastructure projects, including mining rail links and the Annaba phosphate port expansion. Trade Links: Algeria and Belarus discussed boosting bilateral trade and moving toward joint industrial and investment projects. Energy Logistics: Algeria’s port specialization drive aims to improve efficiency, with Mostaganem flagged as a first test case. Industry Innovation: WIPO and INAPI launched the second “Nadjahi” SME IP program, focused on agrifood. Agritech Push: Algeria launched the “NAWAT” agri-tech national challenge ahead of AgriTech 2026 in Annaba. Automotive Cluster Plan: Algeria is considering a $2.3bn automotive cluster to build a local supply chain beyond vehicle assembly. Ports & Trade: Algeria’s port specialization decision is set to reduce pressure on other ports and streamline goods movement.

Hydrocarbons Diplomacy: Algeria’s Minister of Hydrocarbons Mohamed Arkab met Saudi CEO Turki Bin Saeed al-Amri, discussing industrial investment opportunities including seawater desalination equipment. Energy Security & Markets: LNG bunker prices jumped, with ARA up to $1,607/mt as US-Iran tensions and Hormuz shipping risks tighten supply; analysts also flagged disruptions tied to Russia’s Yamal LNG. Upstream Bids: Indonesia is evaluating participation in Algeria’s 2026 hydrocarbon bid round, adding another Asian player as the tender nears its closing stage. Regional Energy Cooperation: Algeria’s hydrocarbons ministry hosted a South African oil-sector delegation for technical talks under South-South cooperation. AI Strategy: Algeria created five committees to implement its AI strategy, giving large language models a dedicated mandate. Trade & Reserves Pressure: Morocco reportedly surpassed Algeria in foreign exchange reserves, highlighting Algeria’s heavier subsidy and import-restriction burden. Diplomatic Shift: Algeria severed ties with the UAE, with coverage linking the move to Algiers’ deeper alignment with Iran and regional proxies. Industrial Water: Algeria is urged to complete industrial water connection projects before end-2026. Agriculture Response: Wildfire compensation is accelerating in Jijel and Guelma, including livestock feed delivery and poultry farmer payouts.