ALGERIA, August 2025: Can Government Buy Social Quiescence?

ALGERIA: August 2025

“State repression has largely defanged the so-called “Hirak movement” that spearheaded the popular uprising that forced the aged and ailing Abdelaziz Bouteflika to resign the presidency and forego a planned bid for a fifth term in 2019. Ahead of last year’s election, government authorities sought to purchase quiescence through generous increases in state spending made possible by windfall revenues from gas sales to European customers seeking out alternatives to Russian supplies, a strategy maintained under the 2025 budget, which provides for a 9.9% increase in overall spending this year.”

“A key element of the [government’s] diversification strategy is the 10-year program of investment in upstream energy projects with the aim of transforming Algeria from an exporter of raw hydrocarbons into a leading producer of petrochemicals and in Africa and a regional refining hub. Toward that end, the government has approved outlays of $7 billion for the construction of alkylbenzene and polypropylene production plants and a liquefied propane gas (LPG) and condensate facility.”

From our Country Reports and Economic Forecasts (CREF) on Algeria.  In addition to three probability scenarios for regime-types over 18-month and five-year periods, eleven types of government intervention that could prove injurious to investors and business, there is data galore. Have a look when time permits. (https://www.prsgroup.com/explore-our-products/cref/)