Algeria has announced plans to invest $1.5 billion to purchase shares in the BRICS New Development Bank (NDB) while pulling back its bid for full membership in the BRICS economic alliance. President Abdelmadjid Tebboune made these revelations during an interview with national media representatives on Saturday evening, broadcast on Algeria’s national television and radio channels. The decision marks a new phase in Algeria’s approach to international cooperation, where economic self-sufficiency and national growth take precedence over political alliances.
During the ninth annual meeting of the BRICS NDB, held in Cape Town on August 31, Algeria received formal approval to become a member of the bank, paving the way for its $1.5 billion investment. The BRICS New Development Bank, which serves as a financial institution supporting infrastructure and sustainable development projects in emerging economies, offers Algeria a platform for diversifying its financial partnerships and expanding its international economic footprint. The NDB has already made significant strides in financing development projects within its member states, including Brazil, Russia, India, China, and South Africa—the founding BRICS nations.
Algeria’s move to buy shares in the NDB signals the North African country’s intent to position itself as a significant player in the global financial system. The investment would provide Algeria access to international capital flows, technical expertise, and increased opportunities for collaborative projects in critical areas such as infrastructure, energy, and digital economy growth. However, despite this growing financial cooperation with BRICS nations, Tebboune stated that Algeria is no longer interested in pursuing full membership in the BRICS political and economic bloc.
President Tebboune candidly explained why Algeria decided to abandon its long-standing ambition to join the BRICS alliance. “We wanted to join the BRICS economic group, but some members blocked Algeria’s accession,” he said during the televised interview. While he did not specify which members opposed Algeria’s membership, the president hinted that political factors and the membership criteria of some countries played a role in this outcome. “Some members realized they can’t affect Algeria’s dynamic,” Tebboune added, underscoring that Algeria’s robust economic agenda and independent foreign policy may have caused reluctance among certain BRICS members.
The BRICS bloc, which initially formed to represent emerging economies as a counterbalance to Western-dominated financial institutions like the International Monetary Fund (IMF) and World Bank, has increasingly become a platform where geopolitical tensions and divergent national interests have complicated the entry of new members. Algeria’s withdrawal from the membership race is an acknowledgment that the political dynamics within BRICS do not align with its priorities.
President Tebboune made it clear that his country’s primary focus is now on building a resilient and diversified national economy. “Building a strong national economy and protecting Algeria from global fluctuations are among the priorities,” he said during the interview, emphasizing that the decision to halt Algeria’s BRICS membership bid aligns with these goals.
In recent years, Algeria has faced economic challenges, exacerbated by global oil price volatility, a heavy reliance on hydrocarbon exports, and the aftermath of the COVID-19 pandemic. Recognizing the need for economic transformation, Tebboune’s government has laid out an ambitious reform agenda focused on increasing domestic production, enhancing self-sufficiency, and diversifying the economy away from oil and gas.
One of the key pillars of Tebboune’s strategy is achieving self-sufficiency in food production, particularly for essential staples like wheat and barley. “We are exerting efforts to achieve self-sufficiency in basic foodstuffs such as wheat and barley,” Tebboune declared. According to the president, Algeria has already made substantial progress in this area, with the country reaching 80% self-sufficiency in wheat production in 2024. This achievement is a milestone for a country that has historically depended on food imports to meet domestic demand.
The push for agricultural self-reliance comes amid a global food crisis exacerbated by geopolitical tensions and climate change, both of which have caused significant disruptions in global supply chains. Tebboune’s government is determined to shield Algeria from these external shocks by bolstering domestic agricultural production, modernizing farming practices, and investing in irrigation and sustainable agriculture.
In addition to strengthening domestic production, President Tebboune outlined measures to curb smuggling, which has been a persistent problem in Algeria. Smuggling of goods, particularly essential commodities like fuel and food, across Algeria’s porous borders has caused significant economic losses for the country. Tebboune described smuggling as a phenomenon that “harms the national economy” and vowed to implement stricter border controls and enhanced law enforcement to combat it.
Moreover, Algeria plans to establish free trade zones with neighboring countries to facilitate legal cross-border commerce and promote regional economic cooperation. The president highlighted that Algeria already has a free trade zone with Mauritania and will soon create similar zones with Niger, Tunisia, and Libya. These free zones aim to boost legitimate trade, enhance regional economic integration, and create new opportunities for businesses in border regions.
Tebboune acknowledged the difficulties faced by Algerian citizens, particularly in terms of rising living costs and economic disparities. While he admitted that his government “could not turn all Algerians rich,” he vowed to prioritize strengthening the purchasing power of citizens to preserve their dignity and alleviate poverty. “We are committed to reducing poverty and maintaining the purchasing power of our citizens,” the president emphasized.
The Algerian government has introduced various social protection measures and subsidies to cushion vulnerable populations from the impact of inflation and economic hardship. Nevertheless, the challenges of addressing poverty and income inequality remain pressing. Tebboune’s administration is working to create more jobs through industrial development and entrepreneurship initiatives, particularly for the country’s youth, who make up a significant portion of the population.
In his interview, President Tebboune also discussed Algeria’s efforts to attract foreign investment, particularly in sectors outside the hydrocarbon industry. Algeria has long been known for its wealth of natural resources, particularly oil and gas, which have been the backbone of its economy for decades. However, Tebboune emphasized the need to diversify the economy and reduce the country’s dependence on fossil fuels.
To this end, Algeria has been actively seeking foreign direct investment (FDI) in sectors such as renewable energy, information technology, manufacturing, and tourism. The government has introduced legal reforms aimed at improving the business climate, reducing bureaucracy, and providing incentives for foreign companies willing to invest in Algeria’s non-oil sectors.
As part of its strategy to expand trade and economic cooperation with African neighbors, Algeria is working on establishing new free trade zones with key countries. The free zone agreement with Mauritania has already been implemented, and Tebboune announced plans to replicate this model with Niger, Tunisia, and Libya.
These free trade zones are intended to stimulate commerce between Algeria and its neighboring countries, facilitating the movement of goods and services and reducing trade barriers. The government hopes that these zones will also help combat illegal smuggling by providing legal avenues for trade, enhancing regional cooperation, and contributing to economic growth.
The decision to back away from BRICS membership reflects Algeria’s broader recalibration of its foreign policy and economic relationships. While BRICS offers significant advantages to emerging economies, including access to new markets and an alternative to Western-dominated financial institutions, the political dynamics within the group have become more complex. The bloc’s members often have differing geopolitical interests, and recent global developments—such as Russia’s war in Ukraine and China’s growing assertiveness—have added layers of complexity to the alliance’s internal functioning.
Algeria’s decision to invest in the BRICS New Development Bank while distancing itself from full membership suggests that the country is taking a pragmatic approach. By focusing on economic cooperation and investment opportunities without getting embroiled in the political and geopolitical aspects of BRICS, Algeria can benefit from its relationships with key BRICS members while maintaining its independent foreign policy.
Algeria’s decision to invest in the BRICS New Development Bank while shelving its ambitions for full BRICS membership marks a turning point in its economic and foreign policy strategy. Under President Abdelmadjid Tebboune’s leadership, the country is prioritizing domestic economic reforms, self-sufficiency in essential goods, and poverty alleviation, all while seeking to expand its international partnerships through pragmatic engagement.
By focusing on building a strong national economy, enhancing food security, combating smuggling, and creating regional free trade zones, Algeria is positioning itself as a self-reliant and resilient economy in the face of global uncertainties. The country’s recalibrated approach reflects a growing recognition that sustainable growth and prosperity must be built from within while balancing international cooperation based on mutual economic benefits.
Algeria’s bold steps, particularly in the agricultural sector and its targeted investments in infrastructure through the NDB, signal a future where the nation aims to be both self-sufficient and competitive on the global stage, without being tied down by political constraints.
