Algeria: A tech ecosystem “bridgebBetween North Africa and the rest of the Continent”

By Nadjoua Khelil in Algiers

Startups could contribute up to 10% to the GDP excluding hydrocarbons, according to the Ministry of Startups and Knowledge Economy. Already, the tech and entrepreneurship ecosystem is experiencing a new momentum, with promising dynamics that constitute a lever for wealth creation and economic diversification. This performance is the fruit of initiatives aimed at developing entrepreneurship carried out in recent years by both public and private actors, gathered at Algeria 2.0, the showcase of this booming ecosystem, which held its 11th edition from November 19 to 23.

« Each initiative strengthening the ecosystem contributes to the country’s economic growth »

With 75% of participants being English-speaking students and 91 speakers, including 30% of former students turned entrepreneurs, the event serves as a bridge between the academic and professional worlds. Karim Embarek, organizer and founding member of the GAAN (Global Algerian Alumni Network), praised this impact: « Each initiative strengthening the ecosystem contributes to the country’s economic growth. »

To stimulate innovation, the Algerian government, which has placed startups at the heart of its economic strategy, has deployed a range of measures: administrative facilities, tax incentives, dedicated funding, and improvements to the regulatory framework. These initiatives, supported by an improving business climate, aim to enhance the competitiveness of the tech ecosystem. For example, the Algerian Startup Fund and the Algerian Innovation Fund, created in partnership with foreign investors, play a crucial role in innovative projects with high potential.

Similarly, the adoption of the Startup Act, which facilitates the creation of innovative businesses, and the establishment of Algeria Venture, a national accelerator dedicated to funding and supporting startups, have been significant steps forward. These efforts are paying off: startups now contribute nearly 5% to the GDP excluding hydrocarbons, a figure that continues to rise, according to the Ministry of Startups and Knowledge Economy.

A « mature » ecosystem, but…

However, while the regulatory framework and support infrastructures, such as incubators and accelerators, offer a conducive environment, the development of the ecosystem remains a work in progress. Wassila Knatef, director at the National Agency for the Promotion and Development of Technological Parks (ANPT), describes this ecosystem as « a mature construction. » However, she emphasizes the need for a stabilization phase to ensure the sustainability of the achievements.
To consolidate this momentum, the link between universities and startups is essential. According to Wassila Knatef, « our young university students have impressive talents and can contribute to the country’s economic development. » This partnership is reflected in programs like virtual incubation and initiatives such as the ASEP (Algerian Startup Learning Expedition Program), which allowed 450 startups to train at renowned technological hubs internationally.

A continental leader?

That’s the ambition: to position Algeria as a continental leader in technology and innovation. For now, Algeria ranks 2nd in Africa in terms of active startups, with 8,000 companies, 2,000 of which are labeled, behind Nigeria at the top of the podium, followed by Egypt and South Africa in 3rd and 4th place, according to the Startup Ranking released in 2023. Among them are success stories like Yassir, Lablabee, and Garini, gaining international visibility and enhancing the reputation of the Algerian ecosystem.

Karim Brouri, CEO of Brenco, sees this ecosystem as « a strategic bridge between North Africa and the rest of the continent. » However, he stresses that for it to reach its full potential, Algeria must overcome several challenges: simplifying regulations, increasing openness to international markets, and establishing a climate of trust for investors. With a clear strategy and increased collaboration between public and private stakeholders, Algeria could become a major technological hub in the region.

To read more on the same subject:

https://africa-news-agency.com/oil-gas-and-tech-the-new-algeria-takes-shape/
https://africa-news-agency.com/tech-yassir-acquires-kool-startup-to-bolster-its-position-in-the-tunisian-delivery-market/