Institut Montaigne study: 600 French exporters to Algeria have gone bankrupt

About 600 French companies that export to Algeria have gone bankrupt as a result of the collapse in relations between Paris and Algiers, according to a study by the French think-tank Institut Montaigne, cited by the Algerian newspaper Echorouk Online. The figure appears on page 40 of the study, which links the failures to the crisis that hit Algerian-French relations in 2025.

Echorouk Online traces the rupture to President Emmanuel Macron's alignment with Morocco over Western Sahara more than two years ago, which opened a political and diplomatic crisis between the two countries. The outlet describes the scale of the corporate damage as something French authorities had not expected, coming at a time when the French economy is dealing with structural problems and a heavy public debt load.

Five thousand exporters in the exposure zone

Beyond the companies already lost, the study counts at least 5,000 further French firms that live off their exports to Algeria and face the same risk. A third of them generate more than a quarter of their turnover in the Algerian market. According to the study, that dependence explains “the relative resilience of France's share of the Algerian market” — companies with no alternative outlet do not walk away — while it also turns that share into a vulnerability if the diplomatic dispute becomes more complicated. Echorouk Online considers further deterioration likely, pointing to unresolved files between the two capitals.

Michelin exit, idle Renault plant, wheat down 90%

Among the losses listed by the study is the withdrawal of tyre maker Michelin from the Algerian market. Before that, Renault's plant at Oued Tlelat in the Oran region stopped operating in 2020, and attempts by various French officials to bring it back into production have led nowhere.

The sharpest trade figure concerns grain: French wheat exports to Algeria have fallen by roughly 90%, the study says. Despite these difficulties, several large French companies continue to bet on the Algerian market, according to the same source. Shipping group CMA CGM, which has long held the leading share of Algeria's maritime transport market, wants to operate the port of Oran, but the negotiations have run for a considerable period without producing a concrete result.

Investment of 2.8 billion euros against Turkey's 4 billion

French investment in Algeria does not exceed 2.8 billion euros and is seen locally as confined to non-productive sectors, chiefly services such as banking and insurance — a profile that has cost France standing in Algerian eyes, Echorouk Online reports. Competing countries have moved into the gap: Turkish investment in Algeria has reached 4 billion euros.

Political risk into the next French election

Bilateral relations have been marked by a cautious calm since the beginning of this year, with reciprocal visits by officials from both countries, but Echorouk Online says this does not necessarily mean the bleeding will stop. It flags a possible relapse if the far right led by Marine Le Pen reaches the presidency at the next French election, an outcome it describes as strongly probable on the basis of polling conducted over recent months.

French business figures have warned repeatedly about the cost of the standoff. Michel Bisac, president of the Algerian-French Chamber of Commerce and Industry, said earlier that the continued deterioration of political and diplomatic relations would affect French economic interests in Algeria. Former minister and Socialist presidential candidate Segolene Royal has on several occasions blamed Macron's administration for the losses, saying: “Emmanuel Macron suspended diplomatic relations without justification. Global chaos reminds us of a fundamental principle: living alongside your neighbours is the basis of peace and development.”