Algeria is making significant strides toward integrating artificial intelligence (AI) into its economy, aiming for AI to contribute 7% of its gross domestic product (GDP) by 2027. This ambitious goal was announced by Minister of Post and Telecommunications, Sid Ali Zerrouki, at the third edition of the CTO Forum Algeria on February 17. The initiative is designed to diversify the national economy and position Algeria as a global leader in AI innovation.
To achieve this target, Algeria is investing in world-class universities focused on AI, robotics, and mathematics. The government is also fostering innovation through nationwide incubators that support the development of technology startups. State-owned telecom operator Algérie Télécom has committed to a $11.1 million (1.5 billion dinars) investment fund to assist startups in AI, cybersecurity, and robotics, aligning with a presidential strategy to create 20,000 startups in the near future.
Parallel to these initiatives, the government is focusing on training programs such as Scale Centers aimed at enhancing skills in AI, cybersecurity, and cloud computing, especially for young people who lack university education. The National AI Commission has also launched a comprehensive strategy to structure and invigorate the country’s AI sector.
Strengthening Digital Infrastructure
To support the development of the AI ecosystem, Algeria is investing heavily in its digital infrastructure. The government has already installed 265,000 kilometers of fiber optic cable and connected 1,400 sites with 4G technology, aiming to extend coverage to remote areas. Additionally, plans are in place to deploy 7,000 new 4G stations by 2025, enhancing connectivity and internet speeds across the country.
If these initiatives succeed, Algeria’s economy could undergo a profound transformation, with AI playing a pivotal role in boosting productivity across industries such as agriculture, manufacturing, and services. AI is expected to optimize resource management, automate processes, and enable data-driven decision-making, accelerating the nation’s economic growth.
By fostering the development of local startups capable of delivering advanced technological solutions, Algeria could not only improve its economic efficiency but also position itself as a leading exporter of technology. Google’s director for West Africa, Olumide Balogun, underscores the economic potential of AI, noting that it could add as much as $1.5 trillion to Africa’s GDP by 2030. This projection highlights the critical importance of Algeria’s investment in AI to capture a significant share of this rapidly growing market.
