Algeria Boosts Agricultural Financing, Expands Grain Storage to 6.4 Million Tonnes
Image: TSA
Takeaway
The Algerian government's push for agricultural self-sufficiency presents opportunities for foreign investors in several key areas. Companies specializing in modern irrigation technologies, grain storage solutions, and agricultural technology could find a growing market in Algeria. Investors should closely monitor the progress of the government's initiatives and explore potential partnerships with local businesses to capitalize on this trend.
Algeria is significantly increasing its investment in agriculture by expanding financing options for farmers and boosting grain storage capacity, aiming for greater food security. All authorized public banks in the country can now finance agricultural projects nationwide, a shift from the previous system where financing was primarily handled by the Bank of Agriculture and Rural Development (BADR). This change follows an agreement between the Ministry of Agriculture, Rural Development, and Fisheries and the Professional Association of Banks and Financial Institutions.
The expansion of agricultural financing aligns with President Abdelmadjid Tebboune's directives to develop the agricultural sector and achieve food security. The government launched a national program to consolidate grain storage capacity, targeting 9 million tons, but has revised that target to 6.4 million tonnes by 2026. This initiative involves constructing 350 new local storage centers and modernizing port silos. As of August 2025, several local storage centers were completed, including five out of eight planned in the province of Ghardaïa and eight in Timimoun, with a total storage capacity of 45,000 tons.
The government's focus on increasing grain storage capacity is a strategic response to the country's reliance on cereal imports. Between 2020 and 2023, Algeria consumed an average of 17.1 million tonnes of cereals annually, with 75% coming from imports. To address this, Algeria aims to discontinue all durum wheat imports starting in 2026, following what the Agriculture Minister described as an 'excellent' harvest during the 2025/26 season. The country also plans to phase out barley and corn imports. In February 2025, a new 100,000-ton storage silo was commissioned in the Wilaya of Biskra, representing an investment of 850 million dinars (~$6.3 million).
These efforts are supported by a substantial budget increase for the agricultural sector. The Algerian government approved 764.2 billion dinars (~$5.84 billion) for agriculture in the 2026 Finance Bill, a 4% increase from 2025. Approximately 90.25% of this budget will be allocated to agriculture and rural development programs. The government is also freeing up state land to enhance local wheat production; in April 2023, the Algerian National Agricultural Land Office (ONTA) announced plans to distribute more than 200,000 hectares of agricultural land to private investors.
Looking ahead, Algeria aims to modernize its agricultural sector through technology and innovation. The country held the National Conference on Agricultural Modernization in October 2025 to address challenges such as low cereal yields and inadequate storage capacity. The International Finance Corporation (IFC) has proposed technical and financial support for Algeria's agricultural projects, including initiatives to improve production efficiency and establish an Agri-Tech incubator. Investors should monitor the implementation of these programs and the impact on Algeria's import dependence and domestic production figures. The government's commitment to reducing food imports may create opportunities for companies specializing in agricultural technology, irrigation, and storage solutions.