Algeria introduces interest-free loans to expand cold storage for meat, food supply

ALGERIA – The Algerian government is preparing to roll out a financing scheme aimed at improving the country’s cold storage infrastructure for perishable food, with a focus on the meat sector.

Youssef Cherfa, Algeria’s Minister of Agriculture, announced on July 14 that a formal agreement will be signed with all national banks before the end of the month to support the plan.

The deal, coordinated by the Ministry of Finance and the Professional Association of Banks and Financial Institutions, will allow farmers to access interest-free loans capped at US$1.15 million (150 million Algerian dinars).

These loans are expected to target smallholder farmers and will be repayable over a ten-year period, with no payments required in the first five years.

With this funding, farmers will be able to set up cold rooms and storage facilities with floor areas between 300 and 5,000 square meters, depending on the agricultural demands of each region.

The initiative is meant to address Algeria’s current lack of refrigerated storage, which limits farmers’ ability to preserve meat and other food products after harvest.

Government officials say the expansion of cold chain infrastructure is intended not just to cut down on food spoilage but also to give farmers more control over market supply.

Cold storage gaps have long affected Algeria’s food system, particularly in the meat supply chain, where inadequate facilities lead to losses and price volatility.

According to data from the Food and Agriculture Organization (FAO), post-harvest losses contribute to an annual income decline of up to 15% for small-scale producers globally.

Authorities hope that better storage options will allow producers to sell their goods when market conditions are favorable, instead of being forced to sell immediately after harvest.

By easing access to long-term financing, the government aims to encourage more farmers to invest in infrastructure that supports a more stable and efficient supply chain.

The signing of the bank agreement is scheduled for the end of July, and officials say the loan program will be launched shortly after.

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