Algeria has earned a notoriety for being one of the worst countries for doing business in the world, due in part to unfriendly regulations that thwart foreign investors. Algeria’s banks remain state-dominated and highly corrupt thus rebuffing foreign direct investments. The political instability and the uncertainty surrounding the regime as ailing president Bouteflika braces for a fifth term also contribute to undermining the flow of foreign direct investments, badly needed to diversify the economy. Even the private sector is dependent on oil. As the government foot-drags on reforms that would open up the economy and strengthen the competitiveness of the private sector, Algeria continues to struggle with the repercussions of decades of counter-productive policies that put it on the verge of insolvency.

Source: The North Africa Journal February 20, 2019 23:26 UTC