The Context

Algeria has a population of over 44 million people, one in four of whom live in rural areas. Young people account for 14 per cent of the population and 29 per cent are unemployed, with rural young people most affected. While poverty is decreasing, the incidence of rural poverty is four times higher than in urban areas.

Algeria's economy is heavily reliant on oil and gas, which accounts for almost all of its export earnings and a fifth of its GDP. After being declassified from an upper-middle-income country to a lower-middle-income country in 2020, Algeria has taken measures to diversify its economy, including through tourism, manufacturing and construction. Algeria has also been working to improve its infrastructure and attract foreign investment to spur economic growth.

Agriculture is an important sector, employing more than one in four people and accounting for 12 per cent of the GDP. Agricultural products include cereals, fruits, vegetables and livestock.  

While Algeria is food secure and has a low undernourishment rate, its arid climate and large temperature fluctuations pose challenges to the agriculture sector and are exacerbated by climate change, urbanization and high population density in the north of the country.

The Strategy

Algeria stopped borrowing from IFAD in 2006, drawing on its oil revenues to reimburse all loans. However, IFAD still works closely with the government, having revamped its non-lending operations in 2022, including through the launch of a youth employment and entrepreneurship programme.

The Country Strategy Note 2023-2025 outlines two strategic priorities: promoting rural youth employment; and increasing adaptation to climate change in rural areas.

Key activities include:

• training to increase the employability of young people;
• promoting public-private partnerships to support small and medium-sized enterprises;
• improving agricultural water management;
• promoting drought-resistant crops; climate-smart agriculture and renewable energies;
• supporting the circular economy and green jobs for rural youth, especially women.