The decades-long rivalry between Morocco and Algeria has entered a new phase, one shaped less by traditional politics and more by energy deals, trade routes, and migration diplomacy, according to a report by the Carnegie Endowment for International Peace.
This competition has turned into a broader geopolitical game, with both countries deploying what’s known as “economic statecraft” using their economies as tools to shape foreign policy and alliances.
Algeria turns energy into political capital
After Russia’s war in Ukraine disrupted gas supplies to Europe, Algeria found itself in the spotlight. It quickly stepped in to replace Russian gas, becoming Italy’s top supplier by 2024.
Algiers signed major deals with Italy’s energy company ENI, increased its gas exports, and positioned itself as a key energy partner for Europe.
But Algeria isn’t just exporting gas. It has launched a $14 billion green hydrogen project, known as the SoutH2 Corridor, which will link Algeria to Italy, Austria, and Germany through Tunisia.
This pipeline, expected to be up and running by 2030, is part of Algeria’s push to become a major player in Europe’s clean energy transition.
Tunisia also plays a role in this energy triangle, serving as a transit hub. But with Tunisia’s economy struggling and its political scene unstable, the country has become more dependent on Algeria and Italy for support.
Algeria is also using its trade policies as leverage. For instance, after France backed Morocco’s Sahara plan in 2024, Algeria cut its wheat imports from France, punishing Paris economically for its political stance.
The move cost French exporters dearly and forced Algeria to turn to Russia and Eastern Europe for grain.
Morocco bets big on renewables and gas pipelines
While Morocco doesn’t have the same fossil fuel wealth as Algeria, it’s betting on renewable energy.
Over the past two decades, Morocco has heavily invested in solar, wind, and hydropower, and it’s now one of Africa’s top producers of green energy.
The country’s goal is to become a renewable energy hub for Europe, especially for green hydrogen, which is in high demand as the EU pushes for cleaner energy sources.
Morocco’s geography also works in its favor as it’s already connected to European electricity grids and has close ties with Spain and France.
Morocco is pushing to build a massive gas pipeline with Nigeria, the Nigeria-Morocco Gas Pipeline (NMGP), that would pass through 13 West African countries and bring natural gas to Europe.
Backed by countries like the UAE and regional organizations, the pipeline could supply gas to over 400 million people and rival Algeria’s older but stalled Trans-Saharan project.
Moroccan Sahara: the heart of the rivalry
At the core of this geopolitical tug-of-war is the dispute over Moroccan Sahara.
Morocco sees the territory as part of its national integrity and has been pushing for global recognition of its autonomy plan.
Algeria supports the Sahrawi “independence” movement and sees Morocco’s claim as a threat to regional balance.
This disagreement has shaped both countries’ foreign policies, often leading them to seek support from rival blocs and pursue influence in the Sahel and West Africa.
For example, Algeria recently hosted a regional summit with Tunisia and Libya, calling for new Maghreb cooperation, without Morocco.
In contrast, Morocco launched the Atlantic Initiative, which would give landlocked Sahel countries like Burkina Faso and Niger access to the Atlantic via Moroccan ports.
The move gained support from these countries’ governments, although the project still faces serious challenges in terms of infrastructure, security, and costs.
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