Algeria appoints new government amid worst political crisis in decades

Algeria appointed a new government on Thursday, as the country faces its biggest political crisis in decades and a raft of economic problems caused by falling energy revenues.

President Abdelmadjid Tebboune was elected last month and appointed Abdelaziz Djerad as prime minister on Saturday. They have kept several important posts unchanged, seemingly signaling continuity in major state policies.

Abderrahmane Raouia was re-appointed finance minister, after previously serving in that post from 2017 until last March, when he was replaced. As is usual in Algeria, Tebboune will act as defense minister.

Mass protests that broke out in February succeeded in unseating veteran president Abdelaziz Bouteflika in April. An election to replace him was postponed twice as protesters said it would be illegitimate while the ruling elite stayed in place.

Tebboune was elected last month in a vote that the protest movement rejected, winning 58% on a turnout officially registered as 40%.

Algeria, a major energy exporter, depends on its oil and gas sales for 60% of government revenue. However, sales have fallen since oil prices began to drop in 2014 and Algeria’s foreign currency reserves have more than halved since then.

A state budget agreed by the interim government and parliament late last year included new laws aimed at increasing foreign investment but pledged 9% cuts in public spending.

The interim government appointed a new head of state energy producer Sonatrach, Kamel Edine Chikhi, and a new central bank governor, Benabderahmane Ayman, in November.

The parliament also approved a new energy law that would make international investment in oil and gas more attractive in order to arrest declining output, while still keeping a bar on majority foreign ownership of projects in the sector.

The position of deputy defense minister, traditionally an important role in a country where the top generals have held great political power, has not yet been filled. It was held by Gaed Salah until his death of a heart attack at age 79 last week.

Reuters