00:10Hello and welcome to this new edition of Business Africa.
00:15I'm Yasmina El Abasi-Rei, here are the headlines.
00:18Algeria is accelerating the diversification of its economy.
00:22Industry, services, agriculture and mining are growing,
00:26but hydrocarbons remain essential to government revenue.
00:30In Sudan, solar energy is becoming indispensable in the face of power outages,
00:35but its high cost is widening the inequality gap.
00:39In the DRC, culinary festivals serve as a springboard for young restaurateurs.
00:44They allow them to test their concepts, gain visibility and attract new customers.
00:51Algiers is aiming to develop new engines of growth and attract more investment.
00:56This transformation is already visible, but remains fragile,
01:01given the dominance of oil and gas in exports and the state budget.
01:07For decades, Algeria's economy has relied heavily on oil and gas.
01:12Today, Algiers is trying to change that model, and the first signs of diversification are emerging.
01:20In 2024, non-hydrocarbon activity grew by 4.8%.
01:25In the first half of 2025, growth reached 5.4%.
01:32Services, industry, agriculture and mining,
01:35Algeria is looking to broaden its growth engines and attract more private investment.
01:41Authorities are focusing in particular on agribusiness, manufacturing, infrastructure and mining.
01:49The goal is to gradually reduce dependence on energy revenues and give greater weight to non-oil sectors.
01:57But diversification remains fragile.
02:00Oil and gas still dominate exports and government finances.
02:03When energy revenues fall, pressure on the budget quickly rises.
02:11In 2025, the public deficit exceeded 10% of GDP, according to the IMF.
02:17Public debt, meanwhile, crossed the 50% mark.
02:21That is Algeria's paradox.
02:23The economy is diversifying, but the state remains heavily dependent on energy.
02:29Algiers is therefore pushing to expand non-hydrocarbon exports,
02:34backed by major projects in mining, infrastructure and industry.
02:39And there is another challenge ahead.
02:42The global energy transition.
02:49We're joined now by Hichem Lemissi, a geopolitical and strategic analyst specializing in energy issues.
02:57Good morning, Mr. Lemissi.
02:59In your view, which sectors could become genuine export drivers for Algeria beyond hydrocarbons?
03:08What we can observe in Algeria is that a number of strong sectors are already beginning to export,
03:13even though the real objective is not exports, but rather import substitution.
03:17When an economic sector makes it possible to reduce imports by $1 billion,
03:21this represents a considerable contribution to Algeria's public finances and, more broadly,
03:28to the country's economic ecosystem.
03:30Algeria is pursuing a relatively self-reliant development model based on an import substitution policy.
03:36The pharmaceutical industry is a particularly telling example.
03:40Algeria currently has one of the strongest and most developed pharmaceutical sectors in Africa.
03:45More than 80% of the medicines consumed by Algerians are produced domestically.
03:49We can also mention mining, which is now an absolutely crucial sector,
03:54as well as the steel industry, particularly through the development of the Gara Jemilet site.
04:00Phosphate is another example.
04:02It primarily meets domestic demands, which is Algeria's main priority,
04:07but is also beginning to be exported to a number of markets where the country previously had little or no
04:14pressures.
04:14With the acceleration of the global energy transition,
04:20will Algeria be able to adapt its economic model and successfully diversify?
04:27Algeria is a major producer of energy and hydrocarbons, particularly natural gas,
04:32which is considered a transition fuel between traditional hydrocarbons and other forms of energy described as renewable.
04:39Alongside this, there is a major strategic project shared by Algeria, Italy, Austria, and Germany.
04:47This project is known as the South 2 corridor.
04:50It is an energy corridor that will supply Europe with the green hydrocarbon produced in Algeria,
04:55meaning hydrogen generated with low carbon emissions.
05:01We can also mention other projects currently underway in Algeria,
05:05particularly the Trans-Saharan Gas Pipeline, which is intended to connect Nigeria, Niger, and Algeria,
05:11in order to supply European countries with hydrocarbons.
05:17This project is also part of a broader strategy to make Algeria a central hub between the Euro-Mediterranean region,
05:23the Sahel, and the African interior, particularly West Africa, and Nigeria.
05:33Most diversification projects are state-funded. What's holding back private and foreign investment in Algeria?
05:41It must be acknowledged that Algeria faces a number of obstacles and difficulties when it comes to investments.
05:48These obstacles are primarily linked to a control-oriented bureaucracy that has not yet fully completed its transition towards greater
05:56efficiency,
05:57in facilitating economic investments. Regulations remain highly burdensome,
06:02although the Algerian government has been trying to address this issue in recent years,
06:07particularly through the introduction of a one-stop-shop system in the adoption of an investment law
06:13that has helped clarify the conditions to some extent.
06:17The main difficulty faced by economic operators is the lack of a long-term visibility regarding the overall regulatory framework
06:24governing investments.
06:26Algeria is currently considering drawing inspirations from the approach adopted by Morocco
06:32by establishing the principles of its investment code for a 10-year period.
06:37This will provide the regulatory certainty that if businesses particularly need.
06:45Thank you for joining us.
06:48Thank you for the invite.
06:52In Sudan, the war has severely disrupted access to electricity.
06:58Faced with power outages and damaged infrastructure, solar panels and batteries have become an alternative solution.
07:06In Khatoum, adverts for solar panels line the streets.
07:11Since the war began, the collapse of the power grid has created a new market,
07:16one that remains limited to the wealthiest households.
07:22For a modest family, installing solar panels is a huge sacrifice.
07:27But in the face of power outages, it has become an almost inevitable choice.
07:34A home system costs nearly $5,000 in a country where the currency is depreciating and the equipment is imported.
07:43In Om Druman, Randa Al Mansour was able to make the investment thanks to money sent by her husband,
07:50who works in Saudi Arabia.
07:53The power outages are constant.
07:56The children arrive at school, but there's no electricity.
07:59So they have to go home while there's no electricity either.
08:03In this heat, studying becomes very difficult.
08:13For others, the outages can last 16 hours.
08:18They ruin food supplies, paralyze businesses and drive up daily expenses.
08:24In hospitals and pharmacies, they also put patients at risk.
08:29Every three or four days, I have to throw away my supply of insulin.
08:33It's been damaged by the heat.
08:39The damage to the grid is estimated at $3 billion.
08:43Despite immense solar potential, this vital energy remains inaccessible to a large portion of the population.
08:54In Kinshasa, Congo Food Week harnesses gastronomy to foster entrepreneurship and solidarity.
09:01It serves as a showcase for young talent with proceeds this year supporting displaced people from South Kivu.
09:09In Kalima, in the heart of Kinshasa, Rashidi Kandolo is developing Working Good, his mobile restaurant.
09:1711 months after his launch, the business is still finding his footing.
09:24The project is still young.
09:26We are facing difficulties with stock management and supply.
09:32Since the product is new, we still need to convince and retain customers.
09:39To gain visibility, Rashidi takes part in festival and cultural events.
09:45Over two weekends, Congo Food Week provides just such a platform for Congolese gastronomy entrepreneurs.
09:56We met a new clientele and received many contracts.
10:02Some already want delivery.
10:05This allows us to expand our network.
10:14For young restaurants, the festival is a real driver of growth, visibility and new customer acquisition.
10:20But it also has a solidarity mission.
10:22The fans raise each year support charitable initiatives.
10:29We are aware of the challenges.
10:31The DRC is facing severe food insecurity.
10:36We chose to sell what we have most abundantly, our culture, in order to raise funds.
10:44For this sixth edition, the festival's process will support displaced people from South Kivu who are now living in Tanganyika.
10:57That concludes this edition.
11:00Find us on our platforms and at africanews.com
11:12business Africa was presented by Turkish Airlines.
11:15lines.
