Algeria is in advanced talks with the World Bank to establish a funding mechanism for local startups, aiming to mobilize over $10 million for select Algerian young enterprises. This development was announced by Minister of Economy of Knowledge, Startups, and Micro-enterprises, Noureddine Ouadah, in an interview with Asharq Bloomberg. The initiative is set to launch during the fifth edition of the African Startup Conference, scheduled from December 5 to 7 in Algiers.
The African Startup Conference, themed around Deep Tech, will focus on developing cutting-edge technologies across the continent, particularly in energy, healthcare, artificial intelligence, agriculture, and food industry. The event expects over 25,000 participants and 40 official African delegations led by ministers. Discussions will also center on digital sovereignty and mechanisms to attract more capital for African startups.
According to Minister Ouadah, the World Bank has shown interest in Algeria's market, especially in startups demonstrating growth potential and expansion prospects in Africa and Europe. The talks involve financially supporting companies with international growth potential. This move aligns with the government's efforts to boost the local startup ecosystem, which has seen significant growth from about 200 startups in 2020 to over 15,000 projects and structures today.
The Algerian government has introduced a new mechanism to support research, development, and innovation, as per the 2026 finance law. This involves a 1% contribution from companies with an annual turnover exceeding 2 billion dinars (approximately $15 million). The collected funds will support research and innovation activities, with expectations of generating several hundred million dollars annually.
Minister Ouadah highlighted the growth in funding for cutting-edge technologies in Africa, citing data from the UN Development Program. Investments in this sector have risen from $86 million in 2015 to $1.2 billion in 2023. This uptrend underscores the increasing focus on innovation and technological advancement across the continent.
The fifth edition of the African Startup Conference will also review initiatives from previous editions, including conclusions from the fourth conference, which were approved at the African Union headquarters in Addis Ababa. The conference aims to facilitate dialogue among stakeholders and foster collaboration to drive growth and innovation in the African startup ecosystem.
The outcomes of the conference and the proposed World Bank funding are expected to significantly impact Algeria's startup landscape. With a growing number of startups and increased focus on innovation, Algeria is poised to strengthen its position as a hub for technological advancement in Africa. Key points include the potential $10 million funding, the focus on Deep Tech, and the growth of Algeria's startup ecosystem.
Key points
- Algeria aims to secure over $10 million in funding from the World Bank for local startups.
- The African Startup Conference will focus on Deep Tech and expects over 25,000 participants.
- Algeria's startup ecosystem has grown from 200 startups in 2020 to over 15,000 projects today.
