Algeria increases military spending due to regional context
According to the Federal Ministry of Economics and Environmental Protection, Algeria topped the list of African countries buying armaments from Germany in 2024, with a figure of 559 million euros. This increase is due to the rise in Algerian military spending, which the government justifies by the need to protect itself from ‘unprecedented regional threats’.
In addition to being the first in Africa, Algeria also ranks third in the world among countries that buy arms and military equipment from Germany. First place goes to Ukraine, with 8.1 billion euros, due to the needs arising from its war against Russia. Singapore is second, with more than 1.2 billion euros.
In relation to the above, Bloomberg reported that Algeria's defence spending could rise to an all-time high of 3.35 trillion dinars, equivalent to 25.1 billion dollars. Algeria is one of the countries in the MENA (Middle East and North Africa) region with the highest defence spending, accounting for approximately one-fifth of the country's total budget in 2025.
The annual increase in the Defence budget, as reflected in the 2025 budget bill approved by Parliament, has been 16%, explained in the 2025 budget bill that was approved by Parliament.
Algeria's challenges
The increase in the military budget by the government headed by Abdelmadjid Tebboune has sparked unrest among the Algerian population, which is going through a difficult economic situation. According to the World Bank, unemployment among Algeria's young population reached 12.3% in 2023, while the government continues to increase military spending.
Critics of the Algerian government claim that Algeria is pursuing a political strategy of creating tension with neighbouring countries, especially Morocco, in order to justify its arms policies and hide corruption.
Algeria has had a decades-long dispute with Morocco over Western Sahara and has watched as its Moroccan neighbour has won the backing of the US, French and Spanish governments for its Western Sahara policy.
Algeria's approach is at odds with what is happening in Morocco, as the country's military spending fell by 25% in 2023 to 5.2 billion dollars. Moreover, according to military analysts, Morocco is managing these funds rationally, modernising its fighter jets, helicopters and acquiring advanced devices such as drones. The country is also working to strengthen anti-aircraft coverage for regional defence.
Conflicts in the area
Countries south of Algeria such as Mali, Niger and Burkina Faso have seen a series of military coups, leading to growing insecurity and the return of militant Islamist movements that pose a potential threat.
Indeed, some of them have pointed to Algerian interference: the ruling military council in Mali announced the end of the Algiers peace agreement and claimed that Algeria was to blame for the hostilities and interference in the country's internal affairs.
This instability in neighbouring countries such as Mali, Niger and Libya prompted Algeria to rearm its army and equip it with modern tools to monitor its borders.