Algeria is making significant strides towards modernizing its financial system and diversifying its economy, according to recent reports from the Algerian Press Agency. Key initiatives are underway, ranging from promoting non-cash transactions to fostering innovation in the digital economy. The central bank governor has announced an ambitious goal of achieving a predominantly cashless society by 2028. This initiative aims to improve efficiency, reduce corruption, and enhance financial inclusion across the country.
Furthermore, the governor highlighted the Algerian economy’s “strong” resilience in the face of global economic challenges. This resilience is attributed to various factors, including prudent fiscal policies and diversification efforts. The government is actively working on measures to stimulate open innovation, which is expected to provide a new impetus for the digital economy. These measures include creating a more favorable regulatory environment for startups and encouraging collaboration between academia, industry, and government.
The proposed 2026 Finance Law reflects a commitment to adapting to evolving economic realities. It adopts a new model for macroeconomic forecasting, enabling more accurate assessments of the country’s economic performance and future prospects. Mobile payment solutions are also gaining traction, with over 70,000 users now utilizing the “DZD Mob Pay” system. This growth indicates a growing acceptance of digital payment methods among Algerian consumers.
In addition to promoting digital innovation, the government is focused on supporting purchasing power and investment through new tax measures. These measures are designed to incentivize economic activity and create a more attractive investment climate. Medium-term macroeconomic frameworks are being developed to guide economic policy and ensure sustainable growth. The national economy is projected to grow by 4.1% in 2026, signaling a positive outlook for the future.
The 2026 Finance Law is currently under review by the relevant committee, with Finance Minister Mr. Bouzerda presenting the details of the budget proposal. Islamic finance is also playing an increasingly important role in the Algerian economy, experiencing significant growth and poised to become a major contributor to national development. Efforts are underway to transform Islamic banking into a fundamental pillar of the national economy.
Finally, a study is being conducted regarding the potential listing of the “INSAG” group, a higher education institution, on the stock exchange. This move could further diversify the Algerian economy and attract investment in the education sector. Algeria’s focus on digital transformation, economic diversification, and financial modernization points towards a promising future for the nation’s economy. The shift toward cashless transactions, coupled with support for innovation and investment, is expected to drive sustainable growth and improve the quality of life for Algerian citizens. The government’s commitment to these initiatives signals a proactive approach to navigating the challenges and opportunities of the 21st-century global economy. Keywords: Algeria, economy, cashless society, digital economy, Islamic finance, investment, innovation, 2026 Finance Law.
Related: More algeria articles on DZWatch
Source: External reference
