Bank of Algeria halves foreign commitment limits for banks
via Algérie3602 min read
The Bank of Algeria has issued new instruction n°03-26, effective May 1, 2026, which significantly reduces the maximum foreign commitments for banks and financial institutions. This new regulation amends and supplements instruction n°02-2015, lowering the limit from 100% to 50% of a bank's regulatory own funds. Previously, a bank with 100 billion dinars in own funds could commit up to 100 billion dinars internationally; under the new rule, this will be capped at 50 billion dinars. This change will impact importers and cross-border financing, as banks will need to immediately revise their exposure to current and future import files. Financial institutions will see their capacity to issue guarantees or documentary letters of credit reduced by half. Importers may face refusals or delays if their reference bank's ceilings are already met. The measure covers all signature commitments related to import operations, after deducting guarantee deposits and provisions made in dinars for these operations. Governor Mohamed Lamine Lebbou's signing of this text signals the Bank of Algeria's intent to strengthen its supervision of external risks.
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The number of Algerian students in Russian universities has significantly increased, reaching 2,194 enrolled in Russian higher education by June 2026. This represents a tenfold increase over the past decade, as only 200 to 220 Algerian students were enrolled ten years prior. This growth has accelerated in the last three years, driven by stronger academic ties between Algiers and Moscow. A key factor in this trend is a bilateral agreement signed on January 30, 2025, in Algiers, between Kamel Baddari, Algerian Minister of Higher Education and Scientific Research, and Konstantin Mogilevski, Russian Deputy Minister of Science and Higher Education. This agreement ensures the mutual recognition of university degrees and qualifications, removing a major obstacle for Algerian graduates seeking professional integration in Algeria. Russia also offers approximately 100 state scholarships annually to Algerian students, primarily for advanced degrees like doctorates. These scholarships cover tuition, university housing, and a year of Russian language training. While medical studies remain popular, there's a growing interest in technological fields such as computer science, artificial intelligence, software engineering, and autonomous systems programming. Algerian students are primarily distributed across institutions like the Russian University of Peoples' Friendship RUDN in Moscow, Tambov State University, and Lobachevsky University of Nizhny Novgorod.
Sonelgaz International, the international subsidiary of the Algerian group Sonelgaz, is expanding its presence across the African continent with several electricity production and transmission projects. The company aims to strengthen its footprint and export its expertise in the energy sector, with projects spanning Tunisia, Mozambique, Niger, Chad, and Côte d'Ivoire. Yazid Djelouli, President and CEO of Sonelgaz International, stated that current projects involve production capacities ranging from 40 to 1,000 megawatts. In Chad, Sonelgaz is involved in operating a solar power plant with a 25-megawatt capacity, though only 12 megawatts are currently fed into the grid due to transmission infrastructure limitations. Studies are underway to modernize Chad's electrical network to utilize the plant's full capacity. In Niger, Sonelgaz has completed a 40-megawatt power plant, which accounts for nearly 20% of the country's national electricity production. Tunisia is also a strategic partner, with Algeria currently exporting approximately 600 megawatts of electricity via a 400-kilovolt transmission line. Discussions are ongoing for an independent power producer IPP project in Tunisia, potentially reaching 1,000 to 1,200 megawatts. Sonelgaz's African strategy extends to Côte d'Ivoire, where it is preparing several power plant projects with capacities between 700 and 1,000 megawatts. Other projects are being developed or studied in Mozambique, Chad, and Niger. Beyond infrastructure cons
Must ReadAlgeria, once a demographic outlier in North Africa, is now experiencing a significant and sustained decline in its birth rate, according to a recent report from the National Institute of Demographic Studies INED. This trend brings Algeria in line with Morocco and Tunisia, which have seen consistent drops in fertility. While Tunisia reached the generational replacement threshold by the end of the last century and Morocco shows a steady decline, Algeria had a resurgence in birth rates during the 2000s and 2010s, driven by increased marriages linked to housing and employment access. However, this surge has ended. Currently, Rabat records 1.97 children per woman, Tunis is at 1.53, and Algiers, though slightly higher, has seen a continuous drop in fertility since 2017. This decline reflects deep societal changes, including women's prolonged access to higher education, delayed entry into the job market, and a rising age for marriage. Despite higher education levels for women, their professional integration is not sustained, with many facing domestic constraints after age 30, leading to inactivity. Only a quarter of Algerian women aged 40 to 44 are employed. This highlights institutional challenges in balancing family life and professional aspirations. The impending challenge for Algeria is an aging population. While Tunisia 17% seniors and Morocco 13.8% are ahead, Algeria 10.5% faces an inevitable acceleration. Public policies, traditionally focused on a large youth population, mu