Algiers – The Ministries of Finance and Agriculture, Rural Development, and Fisheries signed an agreement on Thursday in Algiers to expand agricultural investment financing services to all public banks, a service currently almost exclusively provided by a single public bank.
The agreement was signed by the Minister of Finance, Abdelkrim Bougherara, and the Minister of Agriculture, Rural Development, and Fisheries, Youcef Chorfa, in the presence of the President of the Professional Association of Banks and Financial Institutions, general managers of public banks, a representative of the National Union of Algerian Farmers, and officials from both ministries.
In his remarks during the signing ceremony, Minister Bougherara emphasized the importance of this agreement, which aims to fulfill the commitments made by President Abdelmadjid Tebboune during the national agriculture sessions held in November last year. These commitments stressed the necessity for all active banks to finance investments in the agricultural sector. The minister praised the recent gradual entry of some banking institutions into agricultural investment financing, noting that the Banque de l’Agriculture et du Développement Rural (Badr) still handles the largest share of loans directed toward the agricultural sector.
In addition to Badr, the agreement includes other public banks: Banque Nationale d’Algérie (BNA), Banque Extérieure d’Algérie (BEA), Caisse Populaire d’Epargne et de Crédit Algérien (CPE), Banque de Développement Local (BDL), and the National Savings and Pension Fund Bank (CNAS-Banque).
For his part, Minister Chorfa stated that expanding banking financing to the agricultural sector will contribute to achieving the strategic goals set by the authorities in this field, particularly ensuring food security through promoting investment—especially within the framework of the National Strategic Crops Plan. He noted that today’s agreement materializes the broader framework agreement signed between the Ministry of Agriculture and the Professional Association of Banks and Financial Institutions at the end of 2023.
Minister Chorfa described the agreement as an “important addition” to the economic drive emphasized by the President, aimed at supporting the agricultural sector to increase its contribution to the national economy and achieve a GDP target of $400 billion for Algeria by 2027. Additionally, he highlighted that public banks will enhance financing for agricultural projects benefiting from state support through interest rate subsidies, enabling farmers and investors to access loans under favorable conditions to implement and expand their activities.
Following the signing ceremony, the President of the Professional Association of Banks and Financial Institutions, Mohand Bourai, stated that the agreement covers all investment projects across various agricultural sub-sectors, reflecting the sector’s significance in achieving the country’s strategic food security objectives.
Article written by Nor Eleslam for dzwatch.dz.
