French companies in Algeria are paying the high price of diplomatic tensions

French companies in Algeria are paying the high price of diplomatic tensions
French companies in Algeria are paying the high price of diplomatic tensions

Relations are still frosty between and Algiers. They have deteriorated in recent weeks with the declarations of French politicians on the 1968 Franco-Algerian agreement on residence permits but also with the arrest of several Algerian influencers in . The French writer Boualem Sansal is still behind bars in Algeria.

The situation was already extremely tense since this summer and the announcement of Paris' support for the Moroccan autonomy plan in Western Sahara, the scene of a conflict for half a century between Morocco and the Sahrawi separatists of the Polisario Front, supported by Algiers. And this diplomatic situation has repercussions on trade and the activity of French companies in Algeria. Some are idling or even completely stopped.

The current diplomatic crisis makes him very angry. Michel Bisac, president of the Algerian-French Chamber of Commerce, calls for political responsibility : “Let's stop the hysteria. Everyone makes their own little statement to know how we are going to fight against Algeria. We are in the most basic electoralism.”

The Renault factory in Oran, which produced up to 60 000 vehicles five years ago, is now completely at a standstill after having experienced major slowdowns in the meantime. Less than 3 000 vehicles have left the factory over the past two years.

A situation that Michel Bisac regrets, while Renault says it is ready to restart: “Renault has done what is necessary to comply with the new standards imposed by the Algerian government and therefore, they are awaiting authorization. French politicians should become aware of the reality of the relationship.”

“It's a complicated relationship, but it's a relationship that we can't stop overnight. Or we sit on all the exchanges that exist and that's not possible today. today.”

Michel Bisac

at franceinfo

Another sector affected: the agri-food industry, particularly wheat. The import of French cereals into Algeria was divided by three between 2018 and 2024. Imports also decreased for dairy products, such as powdered milk.

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But after a peak in diplomatic tensions, the trend is today for appeasement, assures Jean Louis Levet, economist and former senior official in Franco-Algerian technological and industrial cooperation: “Both countries are intelligent. They understood very well that we had to gradually get out of this escalation.”

“What's important is not to spend our time looking in the rearview mirror !”

Jean-Louis Livet

at franceinfo

“Today, the two civil societies have perfectly understood that it is in their interest to work together, continues Jean-Louis Levet. Many Algerians and French people already work together so it is this perspective, today, that we must open up.” Despite difficulties in certain sectors, imports of French products increased by 7% last year, according to the Algerian-French Chamber of Commerce.

The Franco-Algerian climate, not really favorable for businesses: report by Mélanie Kuszelewicz

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