Algeria has announced the mobilization of $1 billion to fund African startups and young innovators, marking a major step toward fostering continental innovation and economic integration. The initiative, launched under the leadership of President Abdelmadjid Tebboune, establishes the African Startup and Young Innovators Financing Fund, a landmark mechanism aimed at accelerating Africa’s technological and entrepreneurial growth.
According to Kamel Rezig, Minister of Foreign Trade and Export Promotion, the fund will prioritize projects with high social and economic impact, particularly in technology, education, healthcare, and humanitarian services. “This initiative will support entrepreneurs shaping Africa’s future while expanding intra-continental collaboration and trade,” Rezig said.
The move comes amid a sharp decline in African startup funding, which dropped from $6.5 billion in 2022 to $3.2 billion in 2024, according to Partech Africa. The new fund is intended to fill this financing gap through sustainable, homegrown capital, reducing dependence on foreign investors and strengthening regional ecosystems.
Building Africa’s Innovation Backbone
Algeria’s domestic startup ecosystem has gained steady momentum, with government data indicating the presence of 1,600 microenterprises, 130 startups, 1,175 labeled “innovative” projects, and 2,800 registered patents as of mid-2025. Authorities aim to scale the number of startups to 20,000 by 2029 through continuous support and regulatory reform.
Institutions such as Algeria Venture and the National Startup Fund have played key roles in providing mentorship, access to capital, and market linkages for entrepreneurs. The new continental fund is expected to extend these capabilities beyond Algeria’s borders, creating stronger cross-African partnerships in fintech, agritech, digital health, renewable energy, and other high-growth sectors.
A Catalyst for Regional Transformation
Officials say the fund will act as a catalyst for job creation, digital transformation, and innovation-driven growth across the continent. By nurturing startups and facilitating collaboration among African entrepreneurs, the initiative aims to help build a resilient, knowledge-based economy capable of competing globally.
Through this $1 billion commitment, Algeria reinforces its ambition to position itself as a regional leader in innovation financing, contributing to Africa’s long-term economic independence and technological sovereignty.
