This article examines how the state inefficiency in North Africa has led to an increase of terrorism in these countries. The reasons for the terrorism in these countries are fairly complex, and cannot be explained by just one attribute, like Islamic fundamentalism, but are closely related to state efficiency issues. This article will analyze the aspects of state inefficiency that are typical as the reasons for terrorism in North Africa, examining the countries one by one. That is, there are general phenomena which are closely related to the terrorism, but there are special features in these countries, too, which cannot be described by general tendencies. Finally, the article will conclude with strategies for developing the efficiency of the state which could serve as a tool for counterterrorism in North African countries. The main point of the study is that terrorism cannot be defeated by the military itself, but by a complex development of the state functions which are capable of eliminating the roots of terrorism.