Doha Meeting Reviews Algeria’s $3 Billion Cooperation Pace
A meeting in Doha between Algerian Minister of Finance Mohamed Lamine Labou and Islamic Development Bank (IDB) Group President Mohammed Al-Jasser focused on accelerating the implementation of the Country Cooperation Framework for 2025-2027. This framework, signed in Algiers in May 2025, aims to translate the agreed program into financiable and executable operations, with a target of $3 billion in financial and insurance services. The current phase involves identifying specific projects and tailoring appropriate financing tools, moving from studies and approvals to contracts and disbursement.
This substantial framework builds upon Algeria's long-standing relationship with the IDB Group, having joined as a founding member in August 1974. Historically, the bank has supported hundreds of operations linked to Algeria, with cumulative updated financing reaching approximately $3.1 billion. A significant portion of these previous funds, about 73% or nearly $2.2 billion, has been directed towards the productive economy and essential infrastructure, particularly in industry and mines. Additionally, agriculture received approximately $313.7 million for irrigation and food security, while the energy sector benefited from around $230.8 million for electricity grids and gas infrastructure. The IDB also contributed approximately $454 million to the Trans-Saharan Road, a regional corridor linking Algeria with Tunisia, Mali, Niger, Chad, and Nigeria, enhancing regional trade and African connectivity.
The 2025-2027 program introduces new dimensions beyond just its financial volume, emphasizing a diversified distribution of financial instruments. This includes broader engagement of the private sector, enhanced trade and supply chain financing, and strategic use of insurance and guarantees to mitigate risks and encourage participation from banks and investors. The IDB Group's institutions, such as the Islamic Corporation for the Development of the Private Sector (ICD), the International Islamic Trade Finance Corporation (ITFC), and the Islamic Corporation for the Insurance of Investment and Export Credits (ICIEC), play distinct roles in facilitating these operations. Notably, cumulative insurance coverage for Algerian-related operations reached approximately $10 billion by mid-April 2025, which represents the value of transactions and investments protected against risks, significantly enhancing project and transaction financeability. In 2024 alone, the insurance arm facilitated over $267 million in commercial transactions and approximately $1.8 billion in exports across industrial, agricultural, and pharmaceutical sectors.
Furthermore, the cooperation extends to developing Islamic banking, studying financing tools like sovereign sukuk for infrastructure, and building capabilities. Over 500 Algerian executives and experts have benefited from training programs related to the Islamic economy, financial technology, and liquidity management. The ultimate economic impact of the 2025-2027 program will largely depend on Algeria's capacity to convert the available financial envelope into well-defined projects with measurable returns and clear implementation timelines.
