After having implemented measures to promote the creation of start-ups two years ago, the Algerian executive continues to create the ideal conditions for the construction of a “start-up nation”.
Since the beginning of 2021, out of 3,516 requests, 751 Algerian companies have been “labeled start-ups”, according to Nourredine Ouadah, the director-general of the direction of start-ups and support structures at the ministry delegated to the Prime Minister. Most of the labels having been issued in large cities such as Algiers, Oran, and Constantine, the director indicated that his ministerial department intended to redeploy within the country as well as in the south to raise awareness and popularize the systems put in place. in favor of the creators of start-ups.
Among the conditions for obtaining this label, the company must have been created for a maximum of eight years; its business model must be based on an innovative concept; its annual turnover cannot exceed the amount set by the national committee and its share capital must be held at least 50% by natural persons, approved investment funds or by other companies with the start-up label. up. The company may not employ more than 250 people.
A former entrepreneur at the ministry
Several new measures in favor of start-ups and incubators were unveiled at the “Algeria Disrupt 2022” conference on February 6 in Algiers. Before an assembly of players in the sector, Yacine Oualid , Minister Delegate in charge of start-ups, announced that the State would cover the costs inherent in patents and intellectual property, as well as the creation of a new financial support program, spread over the national territory, intended for initiators of innovative projects. New procedures related to the export of digital services have been unveiled by an appointed representative at the Bank of Algeria.
For two years already, making Algeria a “start-up nation” has been a strong ambition carried by Yacine Oualid. At the end of January 2020, shortly before the Covid-19 pandemic brought the world economy to a standstill, this former boss of a digital hosting company implemented in a few months a regulatory and tax framework in favor of young shoots (tax exemption for four years, lower customs duties and VAT). At the same time, the Minister created the High Council for Innovation, responsible for labeling start-ups and incubators likely to benefit from funds. He also participated in the launch of the Algerian Start-up Funds (ASF), a public venture capital company owned by six banks and endowed with a capital of 1.2 billion DA (6.4 million euros).
Eighteen sectors of activity concerned
Since its establishment at the beginning of 2021, the ASF has already granted 510 million DA (3.2 million euros), indicates the director of the Fund’s participation, Hachani Okba. In total, eighteen sectors of activity are concerned (services, information and communication technologies, health, transport and tourism) and supported by a financing mechanism based on equity participation in the capital of start-ups. for a limited time.
