• Algeria has mobilized $1 billion to finance African startups and young innovators under a new continental fund launched by President Abdelmadjid Tebboune.
• The initiative aims to boost innovation in strategic sectors including technology, education, health, and humanitarian aid.
• The move comes as African startup funding dropped from $6.5 billion in 2022 to $3.2 billion in 2024, underscoring the need for sustainable, homegrown financing.

Algeria has committed $1 billion to support African startups as part of its effort to stimulate innovation and strengthen regional economic integration, the country’s Minister of Foreign Trade and Export Promotion, Kamel Rezig, said on October 21.

The funding, part of the African Startup and Young Innovators Financing Fund launched in September by President Abdelmadjid Tebboune, targets projects with high social and economic impact across the continent.

Rezig said the fund will “back entrepreneurs working in priority areas such as technology, education, healthcare, and humanitarian services” to foster African creativity and expand intra-continental trade.

The announcement comes amid a sharp decline in startup financing across Africa. Data from Partech Africa show that funding fell from a record $6.5 billion in 2022 to $3.5 billion in 2023, and stabilized at about $3.2 billion in 2024.

Despite the slowdown, the continent’s tech sector has remained resilient, prompting governments and investors to develop more sustainable, locally anchored financial mechanisms.

Domestically, Algeria has built momentum in entrepreneurship. Government data show that by mid-2025 the country hosted 1,600 microenterprises, 130 startups, 1,175 projects labeled “innovative,” and 2,800 registered patents. Authorities aim to grow the number of startups to 20,000 by 2029.

Entities such as Algeria Venture and the National Startup Fund have been instrumental in mentoring entrepreneurs, facilitating access to capital, and connecting innovators with regional networks.

Officials said the continental fund will strengthen collaboration among Algerian and African entrepreneurs in key industries such as fintech, agritech, digital health, and renewable energy.

Over time, the initiative is expected to help structure an integrated African innovation ecosystem capable of generating skilled jobs, accelerating digital transformation, and improving the continent’s economic resilience.

This article was initially published in French by Samira Njoya

Adapted in English by Ange Jason Quenum