Algeria allocates US$6B to modernize agriculture in 2026

ALGERIA – Algeria has approved a US$6 billion budget to modernize its agriculture sector in 2026, marking a 4% rise from the previous year. The plan aims to boost local food production and lessen dependence on imports.

During a session before the Finance and Budget Committee of the National People’s Assembly on November 3, Agriculture Minister Yacine El-Mahdi Oualid said the government had authorized public expenditure commitments totaling 764.2 billion dinars (US$5.84 billion).

“The 2026 budget will focus on improving productivity, modern irrigation, and the development of rural areas,” he stated.

According to details from Algérie Presse Service (APS), about 90.25% of the new budget will go toward agriculture and rural development programs, while 6% will support forestry projects and 3% will be directed to general administration. The remainder will fund fisheries and aquaculture initiatives.

This funding increase follows the National Conference on the Modernization of Agriculture, held on October 27 and 28. During the event, the government reaffirmed its focus on technology and innovation to transform the sector.

“We must improve yields and address structural weaknesses in our food systems,” Minister Oualid told local media after the conference.

Addressing key challenges

Algeria’s agriculture contributes 13% to its GDP and provides jobs for around 9% of the working population. However, it continues to face low productivity levels. Government data show that the average cereal yield stands at 1.8 tonnes per hectare, less than half the global average of 3.9 tonnes.

Weak storage and cooling systems remain a major concern. Post-harvest losses affect between 20% and 30% of agricultural production annually. Moreover, modern irrigation techniques are used on only 15% of irrigated land.

“We are dealing with a steady decline in water resources due to drought and climate change,” said an official from the Ministry of Agriculture.

These challenges have kept Algeria heavily reliant on imported food. The country ranks second in Africa after Egypt in food import spending. Central Bank data show that food imports rose by 10.66% in 2024, reaching $10.97 billion. The rise was driven mainly by meat, vegetables, pulses, and cereals such as wheat and barley.

The government hopes the 2026 budget will help reduce this dependency by strengthening local supply chains and encouraging farmers to adopt efficient methods. “Our goal is to make Algeria self-sufficient and ensure food security for all citizens,” said Minister Oualid.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.