Last Friday, 29 July, the Algerian banking employers association (ABEF) reversed a decision made on 9 June that blocked financial transactions with Spain. Hours later, however, the Algerian government amended the letter sent to ABEF, indicating that trade was a government mandate and striking any mention of resuming trade from the record. This sequence highlights a political rift that continues to ripple through commercial ties.
The resulting uncertainty feeds confusion among Spanish companies, which remain largely silent and cautious, waiting for clearer signals about the future of their operations in Algeria. Salvador Navarro, vice president of the CEOE and head of the Valencian Community Business Confederation, urged both governments to pursue flexibility and diplomacy to bridge differences and preserve the current trade flow.
The European Union has been identified as an ally in the search for a sustainable solution. Officials acknowledge expectations from the Algerian authorities while noting that the response from the banking sector adds a layer of hesitation among foreign traders. Navarro emphasized that the banking announcement lifting restrictions on foreign trade was received with relief, yet the apparent backing from authorities has bred a degree of mistrust. The situation remains fragile and could deepen concerns among companies engaged in cross-border commerce.
The Ministry of Industry, Trade and Tourism has stated that it is closely monitoring the position of Spanish firms in the market and that standardization of business activities will proceed as soon as possible. The ministry has a coordinating role with the Ministry of Foreign Affairs to keep national companies informed about developments and to align responses across government agencies.
Among the Spanish entities active in Algeria, about 140 companies are present, including Vicky Foods, the leading pastry producer in the country via its subsidiary. GB Foods operates a factory there, and major energy and industrial groups such as Naturgy, Cepsa, and Repsol maintain a footprint in the market. In the construction sector, firms like FCC have stated that this diplomatic tension is unlikely to significantly affect their earnings, given the overall weight of Algeria in their business portfolios remains limited. The coming weeks are expected to reveal whether these multilateral negotiations yield a stable path for ongoing trade and investment.
Analysts observe that the crisis underscores the importance of coordinated policy signaling, credible banking arrangements, and clear channels for dialogue between the two nations. They also note that regional and international partners will be watching how the EU leverages its relations to support predictable trade rules and reduce the risk exposure of exporters. The key challenge lies in translating political statements into reliable commercial certainty, allowing companies to plan, finance, and execute cross-border projects with confidence.
In the broader context, Algeria’s economic partners are increasingly attentive to the need for predictable standards in financial operations and timely communication from authorities. As the situation evolves, Spanish firms expect transparent updates and a demonstrable commitment from both sides to restore normal trading conditions. The coming days are likely to reveal how quickly official clarifications can translate into practical steps that stabilize supply chains, protect investments, and safeguard jobs across industries that rely on Algerian markets. [Attribution: Economic and trade reporting by regional authorities and business associations.]