Bankruptcy Of 600 French Companies Exporting Products To Algeria

Among the intriguing issues revealed by the lengthy study conducted by the French “Montaigne” Institute regarding Algerian-French relations, was the disclosure of a bombshell represented by the bankruptcy of 600 French companies exporting their products to Algeria, in one of the most prominent economic repercussions resulting from the political and diplomatic crisis that hit bilateral relations following the bias of the French President, Emmanuel Macron, in favor of the Moroccan regime regarding the Western Sahara issue, more than two years ago.

Specifically, on page 40 of the French research center study, it was stated that the crisis that hit Algerian-French relations in 2025 led to “bankruptcies affecting about 600 French companies exporting their products to Algeria”, a large figure that the French authorities did not expect to occur at a time when the French economy is suffering from a structural crisis and huge public debts that have badly affected the social situation of the French people.

Based on the same study, no less than five thousand French companies that also live off their exports to Algeria are also threatened with the same fate, because a third of these companies achieve more than a quarter of their turnover from their sales in the Algerian market, which “explains the relative resilience of France’s share of the Algerian market, while this would constitute a danger if the crisis of diplomatic relations becomes more complicated”, which is likely due to many pending files, as well as the persistence of some malicious French circles in striking Algerian interests and targeting the Algerian community residing there.

Among the losses suffered by France in its relations with Algeria is the withdrawal of the global giant “Michelin”, specialized in the tire industry, from the Algerian market, according to the same source, and before that, the “Renault” factory in Oued Tlelat in Oran stopped working since 2020, which all attempts made by various French officials to relaunch it have failed, in addition to the decline of French wheat exports to Algeria by nearly 90%, the study says.

Despite these difficulties, several major French companies continue to bet on Algeria, according to the study, which pointed to the desire of the global French giant active in the maritime transport sector, the company “CMA CGM” (which has held the first share of the maritime transport market in Algeria for a long time), to manage the port of Oran, but this desire remains pending, so that despite the passage of a not short period of time on these negotiations, they have not yet led to a concrete result.

French investments (not exceeding 2.8 billion euros) are viewed in Algeria as being confined to some non-productive sectors, such as the services sector (banking and insurance), which has made them fall in the eyes of Algerians, compared to the rise of investments from competing countries such as Turkey, which reached four billion euros.

It does not necessarily mean that this bleeding will stop in light of the cautious calm that has characterized bilateral relations since the beginning of this year, which was marked by reciprocal visits by officials from the two countries, so that the relationship remains prone to a setback if the far right, led by Marine Le Pen, manages to sit on the throne of the Elysee Palace in the upcoming presidential elections, a highly likely possibility, according to opinion polls that have been conducted continuously for months.

French businesspeople and some moderate politicians have long warned of the risks of the continued diplomatic crisis between the two countries on the economic interests of French investors in Algeria, led by the president of the Algerian-French Chamber of Commerce and Industry, Michel Bisac, who previously warned that the continuous deterioration in political and diplomatic relations would affect French economic interests in Algeria.

Former minister and socialist candidate for the next Spring’s French presidential elections, Ms. Segolene Royal, has also previously held, on several occasions, the administration of Emmanuel Macron and anti-Algerian circles responsible for the loss of French interests due to “actions that do not take into account the specificity of bilateral relations. Emmanuel Macron suspended diplomatic relations without justification. Global chaos reminds us of a fundamental principle: that coexistence with neighbors is the basis of peace and development.”