The Algerian government is engaged in advanced discussions with the World Bank to establish a dedicated investment fund for start-ups. According to Noureddine Ouadah, Minister of Economy of Knowledge, Start-ups, and Micro-enterprises, the fund aims to support Algerian start-ups with growth potential in Africa and Europe. The World Bank's interest in Algerian start-ups is part of a broader effort to promote entrepreneurship and innovation in the region.
Algeria is set to host the fifth African Start-up Conference in Algiers from December 5-7, where start-ups are expected to secure over $10 million in funding from international investors. The conference, themed around deep tech, will focus on cutting-edge technologies in energy, healthcare, artificial intelligence, agriculture, and food industry. With over 25,000 participants and 40 African delegations expected, the event aims to facilitate networking between investors and project leaders.
The Algerian government has introduced a new obligation requiring large enterprises to allocate at least 1% of their taxable profits to research, development, and innovation. This measure, effective since January 1, 2026, targets companies with an annual turnover of at least 2 billion Algerian dinars ($15 million). Eligible expenses include investments in start-ups, research and development projects, and innovation-related activities.
To ensure transparency and accountability, Algerian companies are required to declare their research and innovation expenses on a dedicated platform, innovation.gov.dz. The platform allows companies to upload supporting documents and receive a secure, QR-coded receipt. Non-compliance will result in a tax on the difference between the required and actual investment.
The Algerian start-up ecosystem has shown significant growth, with over 15,000 innovative projects and structures registered, including start-ups, incubators, and accelerators. This represents a substantial increase from 200 start-ups in 2020. The government aims to further boost the sector through the proposed World Bank investment fund and other initiatives.
The African start-up funding landscape has experienced rapid growth, with deep tech investments rising from $86 million in 2015 to $1.2 billion in 2023. Algeria seeks to tap into this trend, with a focus on developing its innovation ecosystem. The country's progress in international rankings, such as the Global Innovation Index 2026, reflects its efforts to promote research and innovation.
The World Bank's involvement in Algeria's start-up sector is part of a broader effort to support entrepreneurship and innovation in Africa. With the African Union adopting key decisions from the previous conference, Algeria is poised to play a significant role in shaping the continent's innovation landscape.
Key points
- Algeria negotiates with World Bank for $10 million+ start-up investment fund
- New obligation for large enterprises to allocate 1% of profits to research and innovation
- Algeria hosts fifth African Start-up Conference in Algiers, focusing on deep tech and innovation
