Since the start of its operations in Algeria in 1971, the Bank Group approved 40 operations for a total cumulative amount of almost UA 2.1 billion.
The sector distribution of operations shows that the infrastructure sector (transport, water and sanitation, energy) represents 43 per cent of approvals, followed by programs to support reforms (22 per cent), financial sector and industry (20 per cent), agriculture (11 per cent) and education (four per cent). In 2006, Algeria decided to suspend the use of external borrowing after having repaid its debt with multilateral and bilateral donors. Since that date, Bank assistance to Algeria consists of technical assistance operations for a total of UA 2.83 million as at 31 October, 2012.
The new direction of the Bank’s cooperation with Algeria has been defined in the Country Dialogue Note 2011-2012, based on the three areas of concentration:
- strengthening the capacity of the public administration;
- private sector development; and
- regional integration.
At the economic level, Algeria has recorded an average economic growth estimated at 3.8 per cent during the period 2002-2011, which is projected at 3.1 per cent in 2012 and 3.4 per cent in 2013.
The economic growth is driven by:
- a major program of public investment in the amount of US $286 billion for the period 2010-2014 and
- domestic demand maintained by large oil revenues in a context of high prices on oil. The oil sector continues to generate 98 per cent of export earnings of the country, 70 per cent of budget revenues and 36.7 per cent of GDP in 2011. The current account balance remains positive and is estimated at 10 per cent of GDP in 2011. The official cumulative foreign reserves of the country have greatly increased in recent years and amounted to US $193.7 billion in late September 2012.
At the political level, Algeria continues to deepen institutional reforms initiated in the first half of 2011. The election of parliamentary took place on May 10, 2012, and women now represent 31.4 per cent of elected members. Since September 4, 2012, a new Government is in place. At the regional level, Algeria has strengthened its cooperation in border security and fight against terrorism, and follows closely the developments in Libya and northern Mali.