The continued lack of activity since 2009 shows that investors have little interest in bonds listed on the Algiers Stock Exchange, preferring instead to invest in off-market securities.

The Algiers Stock Exchange saw zero bond activity in 2023, according to an October 6 report from Algeria’s Financial Market Authority. The document notes that the last bond listing on the Exchange occurred in 2009.

At that time, the market recorded only one bond issuance, from private company Etrhb Haddad, which specializes in road construction and building materials. In its debut on the bond market, the company raised nearly DZD6 billion ($45.03 million) to fund various investments, including public works and asphalt production.

Many analysts believe this situation can be partly explained by issuers favoring the over-the-counter bond market, avoiding the stock exchange. This was confirmed last year when two bonds were issued on the institutional bond market outside the stock exchange. The National Investment Fund (FNI) issued bonds worth DZD160 billion, maturing in November 2024. Maghreb Leasing Algeria also issued a bond worth DZD3 billion, with a 5-year maturity and an annual interest rate of 5.20%, to finance its leasing activities.

In response to this inactivity on the listed bond market, the head of COSOB (Algeria’s Financial Market Authority) proposed in January new tax incentives for institutional investors on the bond market and a cap on loans to companies. These measures aim to encourage businesses to turn to the bond market more often.

On another note, COSOB’s annual report highlights that, as of December 31, 2023, only four companies were listed on the stock exchange: Alliance Assurances, Biopharm, Saidal, and EGH Chaine El Aurassi. The Algiers Stock Exchange’s SME segment has had only one company listed since 2018: AOM Invest Spa. Moreover, the report points out that 27 years after its creation, the stock exchange remains one of the smallest in Africa, with a market capitalization of DZD71.8 billion as of December 31, 2023, representing less than 0.5% of the country’s GDP.