fbpx

Algeria’s FGAR Financed 386 SME’s Worth USD 427 Million in 2024

Algeria’s FGAR Financed 386 SME’s Worth USD 427 Million in 2024
  • The Algerian FGAR financed 386 SME’s last year with a total value of USD 427 million.
  • The latest 2024 figures show that the fund aided 386 institutions with bank loans totalling DZD 39 billion.
  • These projects and funding allowed for the creation of 8,037 job opportunities.

Investments 

The Fonds de Garantie des Crédits Aux Prime (FGAR) financed 386 small and medium enterprises (SME’s) last year with a projected total value of USD 427 million (DZD 58 billion). Additionally, the Algerian fund and its projects allowed for the creation of 8,037 job opportunities.

The latest 2024 figures show that the fund aided 386 institutions with bank loans totaling DZD 39 billion and financial guarantees exceeding DZD 16.3 billion. In addition, authorities report 147 enterprises in central provinces, 118 in the east, 78 in the west, and 43 in the south. As for sectors, there are 178 enterprises in industry, 102 in services, 56 in construction/public works, and 50 in agriculture/fishing.

The Fund’s Efforts

The Algerian Ministry of Industry and Pharmaceutical Production established the fund as a public institution under its supervision in November 2002.  The fund aims to facilitate bank loans for SMEs and to mitigate financing risks with banks through providing financial guarantees. In addition, the fund aids Algerian SME’s financially structure  their projects in order to facilitate their expansion in a competitive market.

Recently, the fund received approval to amend loan formulas to now offer financial guarantees for both investment and operating loans. Previously, these guarantees were limited to investment loans only, as stipulated in Article 108 of the Supplementary Finance Law of 2009.

If you see something out of place or would like to contribute to this story, check out our Ethics and Policy section.