IMF Managing Director Praises Algeria's Investment Reforms at Algiers Conference
Takeaway
The IMF's public endorsement lends credibility to Algeria's FDI reform effort. Companies evaluating North African entry should note the focus on solar-gas hybrids and green hydrogen, two sectors where Algeria is actively seeking international partners. The 51/49 removal allows foreign firms to hold majority stakes in most ventures for the first time since 2009.
IMF Managing Director Kristalina Georgieva visited Algiers on February 5 for the "North Africa: Connecting Continents, Creating Opportunities" conference, co-organized by the IMF and the Bank of Algeria. She met with President Tebboune and described Algeria's economic foundations as "solid," citing progress in investment promotion, digitalization, and non-hydrocarbon exports.
95%
Hydrocarbon share of exports
down from 98% in 2020
2025
FDI code reformed
51/49 rule removed
400+
Conference attendees
from 30 countries
Source: IMF, Bank of Algeria
The conference drew more than 400 officials from across North Africa and Southern Europe. Georgieva identified three areas of opportunity: hybrid solar-gas energy projects in the Sahara, power interconnections with Europe, and green hydrogen exports. Algeria has active feasibility studies in all three areas.
Algeria removed the 51/49 foreign ownership requirement in most non-strategic sectors in mid-2025, its most significant FDI policy change in two decades. The rule had required Algerian partners to hold majority stakes in all foreign joint ventures. Its removal is intended to attract new foreign direct investment.
Italy's Energy Minister Gilberto Pichetto Fratin attended the same conference and held bilateral talks with Algerian Energy Minister Mohamed Arkab. Their discussions covered the Medlink pipeline project and the Southern Hydrogen Corridor.
Hydrocarbon exports currently account for roughly 95% of Algeria's export revenue and 60% of government spending. The government's stated priority is to diversify, and the IMF's public language at the conference was notably more positive than its recent Article IV consultations, which had focused on fiscal consolidation and subsidy reform.
IMF endorsements of this kind tend to influence how rating agencies and development finance institutions assess sovereign risk. Algeria does not currently have ratings from the three major agencies, but the government has signaled interest in seeking a credit rating to access international bond markets.
The conference also included panels on trade integration, investment corridors, and cross-Mediterranean energy infrastructure. A follow-up meeting is expected in Rome later this year.