Core area “Sustainable economic development, training and employment” Creating jobs and enhancing competitiveness

Algeria is facing major challenges. The economy needs to be diversified in order to reduce the country's dependency on oil and natural gas exports. Jobs need to be created for the young, fast-growing population. And vocational training and higher education need to be tailored more closely to the needs of the labour market. Germany is supporting its partner country in addressing these challenges.

Plant for the production of dressing materials in Algeria
Plant for the production of dressing materials in Algeria

Support for small and medium-sized enterprises

Micro, small and medium enterprises (MSMEs) are considered a strong driving force for development. The programme of Algerian-German cooperation provides targeted support to this sector. To that end, GIZ – on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) – is working together with enterprises, business federations, government institutions, the German-Algerian Chamber of Industry and Commerce and the newly established agency for the development and promotion of SMEs.

Tailor-made services and advice programmes are used to help enterprises, among other things, to improve their management, use inputs more efficiently and in an environmentally more sound way, develop new products, and enter new markets within the country and abroad. Special support is being provided to young entrepreneurs.

Employment promotion

So far, the graduates of vocational schools and higher education institutions are faced with unemployment notwithstanding their qualifications, as these often do not match the needs of the labour market. Germany's interventions are geared towards improving employability in certain occupations that are related to energy efficiency and energy management.

The BMZ also fosters dialogue between the government and the private sector, and it supports both the development of practice-oriented, responsive vocational training and higher education programmes and the development of in-service training courses for teachers, and the development of programmes to empower women.

As part of its regional programmes, the BMZ supports the Institute of Water and Energy Sciences (External link) (including Climate Change) of the Pan-African University. There are international master programmes for experts in the fields of water technology, water policy, energy technology and energy policy. There are also plans for an entrepreneurs' centre to be set up at the Institute.