Algeria Goes Continental With USD 1 B Innovation Fund to Support African Startups
Algeria has committed USD 1 B to finance African startups, in a major push to drive innovation and strengthen regional economic integration. The announcement was made on October 21 by Kamel Rezig, the country’s Minister of Foreign Trade and Export Promotion.
Speaking at the African Ministerial Meeting held on the sidelines of the 16th United Nations Conference on Trade and Development (UNCTAD) in Geneva, Rezig reaffirmed Algeria’s commitment to Africa’s development.
He unveiled the creation of the fund to support projects across education, health, development, and humanitarian aid, describing it as part of Algeria’s broader mission to “build an Africa of innovation and solidarity.”
The initiative forms part of the African Startup and Young Innovators Financing Fund, launched last September by President Abdelmadjid Tebboune. The fund targets projects with strong social and economic impact, especially in technology, education, healthcare, and humanitarian services.
Rezig emphasized that this support goes beyond financing; it is about empowering African entrepreneurs, fostering intra-continental collaboration, and enabling Africa’s youth to drive innovation.
Aligned with President Tebboune’s vision, Algeria is complementing its innovation agenda with large-scale infrastructure projects such as the Trans-Saharan Highway, the Trans-Saharan Gas Pipeline, and a high-speed internet fiber-optic network connecting North and Sub-Saharan Africa. Rezig said these projects are key to deepening regional integration and strengthening the foundations of a digital, innovation-driven economy.
He also highlighted the importance of the African Continental Free Trade Area (AfCFTA) in removing trade barriers and promoting the free movement of goods, services, and capital. The minister called for fairer debt management mechanisms and reiterated Algeria’s support for the creation of an independent African credit-rating agency to ensure financial transparency and equity.
The announcement comes amid a slowdown in startup investment across Africa. According to available data, African startups raised USD 3.63 B in 2022, but funding fell to around USD 1.98 B in 2023, reflecting the effects of global economic tightening and cautious investor sentiment.
Despite this decline, the continent’s tech ecosystem remains resilient. Governments and investors are increasingly turning to locally driven financial mechanisms, such as Algeria’s new fund, to sustain growth and build long-term capacity for innovation.
Domestically, Algeria has already made strong progress in fostering entrepreneurship. By mid-2025, the country had 1,600 microenterprises, 130 startups, 1,175 innovative projects, and 2,800 registered patents, with a goal to reach 20,000 startups by 2029.
Institutions such as Algeria Venture and the National Startup Fund have been central to this effort, providing mentorship, access to finance, and connections to regional markets.
The new continental fund aims to extend these capabilities beyond Algeria’s borders, encouraging collaboration among African entrepreneurs in fintech, agritech, digital health, renewable energy, and other high-growth sectors.
Officials say the USD 1 B initiative will act as a catalyst for job creation, digital transformation, and innovation-driven growth across Africa. By nurturing startups and strengthening cooperation among African innovators, Algeria aims to help build a resilient, knowledge-based economy that can compete globally.
