According to the latest census, there are about 7 million Algerians living abroad. Many of them are young and have graduated from some of the world’s most prestigious universities. They work as engineers, entrepreneurs, scientists, intellectuals, and contribute significantly to their adopted countries.
For instance, 80% of the Algerian diaspora in North America (the United States and Canada) consists of highly educated individuals, according to sociologist Hocine Khalfaoui (La diaspora algérienne en Amérique du Nord, 2006). In Europe, especially in France, the Algerian community is even more substantial. Fateh Ouazzani, president of Reage (Réseau des Algériens diplômés des grandes écoles et universités françaises), estimated a few months ago that there were between 300,000 and 400,000 Algerian professionals and entrepreneurs in France and Europe.
These skilled Algerians abroad can play a crucial role in the country’s development. According to a study by the euro-Mediterranean cooperation network Anima (2011), to be effective, these talents should organize themselves into networks that can serve as “bridges for economic development between their countries of origin and their host countries.” Algeria currently has around forty such networks (compared to 67 in Morocco) of skilled individuals mainly based in Europe and North America. Half of these networks are related to business, while the rest are in civil society and the scientific and technical fields.
These networks aim to facilitate business connections between their host countries and the Algerian market through regular business meetings or economic delegations’ visits to Algeria. Examples include the Algerian-American Business Council and the Network of Algerians Graduated from Prestigious Schools. The Algerian Start-up Initiative (ASI), which brings together Algerian talents living in Silicon Valley, has been organizing a competition since 2009 to assist interested members of the Algerian diaspora in launching investment projects in Algeria. The ASI believes that training and entrepreneurship are excellent entry points for qualified expatriates.
Despite this potential, the Algerian diaspora’s contribution to the country’s economy is relatively low. According to the World Bank’s latest report, remittances from Algerians abroad amounted to 1.84 billion dollars in 2012 (compared to 2.2 billion in 2008), making Algeria the fifth-largest recipient of remittances in Africa. However, these remittances represent only 1% of the national GDP.
In contrast, other countries, including neighboring Arab nations, receive remittances that are as significant as tourism revenues or foreign direct investment (FDI). For instance, in Jordan, remittances from the Jordanian diaspora in 2009 accounted for over 15% of the country’s GDP, surpassing tourism revenues (10.7%) and doubling FDI (6.4%). In Morocco (6.9% of GDP) and Tunisia (5% of GDP), remittances exceed FDI (6.1% and 2.2% of GDP, respectively).
Representatives of the Algerian community abroad mostly blame the Algerian government for this low contribution. They argue that the government needs to create the right conditions for investment and provide a clear economic vision to attract the diaspora’s expertise. In contrast, other countries, like Morocco, have specific programs and banking systems in place to encourage and track remittances from their diaspora.
It is crucial for Algeria to recognize and leverage the potential of its skilled diaspora to foster economic development. Addressing the challenges related to remittances and creating favorable conditions for investment can significantly benefit the country’s growth and progress.
