Algeria is the largest country in Africa by area, with a population of more than 44 million people. While the country has put an emphasis on digital government in Algeria (with heavy investment in the ICT sector) the progress has been slow.
Algeria’s ICT sector is continuously evolving but it has problems
The ICT sector serves as the pillar of the country’s digital transformation program.
From 2010 to 2019, the digital government in Algeria invested nearly $4 billion in its ICT infrastructure; from 2015 to 2019, total ICT equipment imports counted for $22 billion.
The telecommunications and information technology segments dominate this sector.
Its infrastructure primarily relies on 3G-4G LTE for mobile telecommunications and ADSL and fiber for fixed telecommunications.
Mobile adoption rates are high, with the number of mobile connections at the start of 2022 going up to 47 million, according to data from GSMA Intelligence.
Note that many people use more than one mobile connection, so it’s not unusual for mobile connection figures to significantly exceed figures for the total population.
Despite this significant progress in ICT infrastructure development over the last decade, the digital government in Algeria lags behind other African countries.
Algeria’s internet penetration rate stood at 70.9% of the total population at the start of 2023.
According to Kepios’s analysis, internet users in Algeria increased by +1.8 % between 2022 and 2023.
However, there were 13.17 million people in Algeria who did not use the internet at the start of 2023.
Digital ID, online transactions and EGDI index
Algeria’s Digital ID was launched in 2016, enabling public institutions to onboard customers efficiently.
The biometric identity card included a national ID number for each citizen and encouraged the modernization of government services across the country.
On the other hand, while mobile broadband connectivity in Algeria is above the MENA average, the use of mobile money is very low.
According to a 2021 World Bank report, only 16% of Algerian adults and 11% of women used digital payments.
For comparison purposes, the average in the MENA region is 23% of adults and 18%.
However, according to the EGDI report, Algeria ranks 112th in the world and 9th in Africa, improving its position by 8 places in two years.
It is among the countries with high EGDI with an E-Government Development Index of 0.5611.
Final remarks
For a developing country like Algeria, productive participation in the digital economy represents a complex challenge.
Without proper institutional support, policies, and strategies, pursuing digital economic integration can lead to job losses and increased inequality.
In Algeria, ICT has the potential to provide new solutions to development challenges.
This segment is well organized, with specialized distributors and nationwide distribution channels that provide services, products, and solutions.
Despite this, more governmental guidance and support is needed to help mitigate the risks.
Further modernization of this sector and the country’s digital transformation will require substantial IT investments.
Furthermore, while legislation is not a problem, partial executions of the newly adopted regulations and the lack of accountability and clear vision hamper the development of a real digital government in Algeria.
