Algeria boosts 2026 agriculture budget by 4% to drive local production
Overall, the announced budget represents a 4% increase compared to the allocation in the 2025 Finance Bill.
ALGERIA – Algeria has allocated 764.2 billion dinars (US$5.84 billion) to its agriculture sector under the 2026 Finance Bill, representing a 4% increase from the previous year’s allocation of $US5.5 billion.
The investment, announced on November 3 by Yacine El-Mahdi Oualid, Minister of Agriculture, during a session before the Finance and Budget Committee of the National People’s Assembly (APN), signals the government’s determination to strengthen domestic production and reduce reliance on food imports.
According to the Algerian Press Service (APS), 90.25% of the 2026 agricultural budget will be directed to agriculture and rural development programs, 6% to forestry, 3% to general administration, and the remaining share to fishing and aquaculture.
Agriculture currently contributes about 13% to Algeria’s GDP and employs around 9% of the working population, underscoring its importance to the national economy and food security agenda.
The announcement follows the National Conference on the Modernization of Agriculture, held in Algiers on October 27–28, 2025, where the government reiterated its commitment to revitalizing the sector through technology, innovation, and structural reform.
During the event, policymakers and experts acknowledged several persistent challenges that continue to constrain productivity and competitiveness across agricultural value chains.
One of the most pressing concerns is the low productivity of Algeria’s cereal sector. The Ministry of Agriculture reports that national cereal yields average 1.8 tonnes per hectare, significantly below the global average of 3.9 tonnes.
The sector also struggles with post-harvest losses of 20–30%, driven largely by weak storage and cold chain infrastructure.
Furthermore, modern irrigation systems cover less than 15% of irrigated land, a worrying indicator as the country faces recurring droughts and dwindling water resources linked to climate change.
These structural weaknesses have deepened Algeria’s dependence on imported food. In 2024, the nation’s food import bill surged 10.66% to reach US$10.97 billion, according to the Central Bank of Algeria.
Meat, vegetables (especially pulses), and cereals such as wheat and barley were identified as the main contributors to the rise. The report also noted that Algeria remains Africa’s second-largest food importer, trailing only Egypt.
By scaling up public investment in agriculture, the Algerian government aims to reverse these trends through a combination of increased domestic production, improved infrastructure, and technology adoption.
The new funding is expected to support ongoing programs in irrigation efficiency, seed system improvement, rural mechanization, and agri-food processing, key levers identified by the Ministry to bolster food self-sufficiency.
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