Algeria: Tebboune aims for economic reforms to consolidate his power

Abdelmadjid Tebboune, Algerian President and candidate for re-election, is focusing his strategy on economic reforms against a backdrop of dependence on hydrocarbons and criticism of the political status quo.

Partagez:

Abdelmadjid Tebboune, candidate for a second term, is emphasizing his economic record to convince voters ahead of the September 7 ballot.
Since coming to power in 2019, he has focused his policies on restructuring public finances, fighting corruption and supporting the population’s income.
The Head of State has emphasized economic growth of 4% since 2022, supported by rising natural gas prices, a key sector for Algeria.
However, energy dependency remains a structural vulnerability of the Algerian economy.

Public finances strengthened but dependent

Tebboune announced an increase in foreign exchange reserves, now estimated at $70 billion, and boasted that he had “put the country back on track” in terms of financial management.
The State, which remains dependent on hydrocarbon revenues accounting for 95% of foreign exchange earnings, is benefiting from a favorable international context, with high energy prices since the start of the conflict in Ukraine.
These conditions have enabled the government to improve its budget balance and limit the deficit.
Internally, Tebboune’s anti-corruption policy has resulted in the prosecution of several influential figures from Bouteflika’s former regime, which is also contributing to this financial recovery.
However, the question of economic diversification remains a pressing one.
The reforms proposed remain insufficient to reduce dependence on fossil fuels.
At a time when the world is moving towards energy transitions, Algeria is struggling to find growth drivers beyond hydrocarbons.
This situation exposes the country to the risk of volatility on international markets, with a direct impact on public finances and social policies.

Social strategy to ease internal tensions

In response to public expectations, Tebboune is implementing support measures such as raising public sector wages and pensions, and creating an unemployment benefit for young people.
At a recent rally in Oran, he promised to create 450,000 jobs and increase the monthly unemployment benefit.
This strategy aims to mitigate internal criticism, particularly from the Hirak movement, which denounces a lack of substantial political reform since the fall of Bouteflika.
Criticism persists, however.
Analysts such as Hasni Abidi of CERMAM in Geneva believe that these measures are more short-term crisis-management tactics than substantive solutions to Algeria’s socio-economic challenges.
The continued repression of dissenting voices and the absence of an inclusive national dialogue indicate that Tebboune’s governance remains rooted in the continuity of the existing system, rather than in a far-reaching political transformation.

Foreign relations and diplomacy under pressure

On the international stage, Tebboune is attempting to reassert Algeria’s influence, notably within the United Nations Security Council.
However, bilateral relations are under increasing strain.
A new crisis erupted with France, following Paris’s support for Morocco’s autonomy plan for the Western Sahara, prompting the immediate recall of the Algerian ambassador.
This diplomatic chill complicates Algeria’s position in its relations with its Western and regional partners.
Tensions with Morocco, particularly over the Western Sahara, continue to fuel friction.
At the same time, the security situation and relations with Mali pose challenges for Algeria, which is seeking to play a stabilizing role in North Africa and the Sahel.
These diplomatic and security issues call for constant adjustments in a region marked by instability.
Tebboune’s next mandate, if renewed, will probably focus on consolidating economic gains and managing political and diplomatic dynamics.
Algeria’s ability to diversify its economy and calm its international relations will be decisive for its future stability.

According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.
The European battery regulation, fully effective from August 18, significantly alters industrial requirements related to electric cars and bicycles, imposing strict rules on recycling, supply chains, and transparency for companies.
The European Parliament calls on the Commission to strengthen energy infrastructure and accelerate the implementation of the Clean Industrial Deal to enhance the continent's energy flexibility and security amid increased market volatility.
The European Commission unveils an ambitious plan to modernize electricity grids and introduces the Clean Industrial Deal, mobilizing hundreds of billions of euros to strengthen the continent's industrial and energy autonomy.
In the United States, regulated electric grid operators hold a decisive advantage in connecting new data centres to the grid, now representing 134 GW of projects, according to a Wood Mackenzie report published on June 19.
The French National Assembly approves a specific target of 200 TWh renewable electricity production by 2030 within a legislative text extensively debated about the future national energy mix.
In 2024, US CO₂ emissions remain stable at 5.1bn tonnes, as the Trump administration prepares hydrocarbon-friendly energy policies, raising questions about the future evolution of the American market.
The early publication of France's energy decree triggers strong parliamentary reactions, as the government aims to rapidly secure investments in nuclear and other energy sectors.
Seven weeks after the major Iberian power outage, Spain identifies technical network failures, while the European Investment Bank approves major funding to strengthen the interconnection with France.
The European Union has announced a detailed schedule aiming to definitively halt Russian gas imports by the end of 2027, anticipating internal legal and commercial challenges to overcome.