Next startups to benefit from a Startup Act in Africa could be Algerian ones. Actually, the development of a specific legal framework for small businesses and startups, which was announced at the beginning of year, is still going-on - even though it has been somehow delayed by the COVID-19 crisis. In fact, according to an announcement by the Minister of Finance, Abderrahmane Raouya, an investment fund of 1.2 billion Algerian Dirhams (10 million euros) intended to financing startups should soon be created for the local ecosystem.
Financing future Algerian champions
Positioning Algeria as an African hub for creation and innovation
Many institutions, including public banks, are stakeholders in this Fund, which is managed by the National Agency for the Promotion and Development of Technology Parks. The Minister also confirmed the creation of a « Start-up City », another major project of this strategy, which will consist in a highly-attractive multi-service technology Center that should position Algeria as an African creation and innovation hub.
While waiting for the creation of a ministry dedicated to digital technology - as promised by the President - a series of tax exemption mechanisms, included in the 2020 Finance Act, have already been set up as part of this roadmap, in order to enable startups to contribute more efficiently to the national economic development.
Minister Yacine Oualid was expected, before the pandemic, to present this month his bill aiming at boosting the emergence of young companies. Even if postponed, it remains more topical than ever. Algeria thus follows the movement started in its neighbours - Tunisia, Morocco but Egypt - that have already enacted or are in the process of enacting a Startup Act.