Algeria is making a bold move in the artificial intelligence (AI) sector with the launch of a $11 million investment fund dedicated to AI startups, cybersecurity firms, and robotics ventures.
The initiative, spearheaded by Algérie Télécom, was announced by Minister of Post and Telecommunications Sid Ali Zerrouki at the third edition of the CTO Forum Algeria. The goal is for AI to contribute 7% of Algeria’s GDP by 2027, driving innovation and digital transformation.
Algeria’s AI Key Ambitions
The government is setting ambitious targets to make Algeria a regional AI hub:
- Fostering 20,000 AI-focused companies to drive tech growth.
- Launching specialized AI universities: Three institutions already focus on artificial intelligence, robotics, and mathematics.
- Deploying startup incubators and training hubs: The Scale Center will soon provide young entrepreneurs with essential AI skills.
“Algeria must accelerate innovation to keep pace with the global digital shift,” Zerrouki stated, underlining the urgency of the initiative.
A Leadership Shift Reflecting Algeria’s Startup Focus
Algeria’s startup ecosystem is shaping government leadership, with key figures from the Ministry of Startups and Knowledge Economy now holding senior government positions:
- Noureddine Ouadah – Former Director of Startups & Incubators, now Minister of Knowledge Economy, Startups, and Micro-enterprises.
- Yacine Mahdi Oualid – Algeria’s first startup minister, now leading the Ministry of Vocational Training and Education.
- Sid Ali Zerrouki – Former Group Managing Director of Algeria Venture, now serving as Minister of Telecommunications.
These appointments highlight the government’s increasing focus on fostering a knowledge-based economy.
Challenges in Scaling Algeria’s AI Ecosystem
While Algeria’s startup-friendly policies have spurred growth, key obstacles remain:
- Limited access to online payment systems: A major hurdle for scaling AI-driven businesses.
- Bureaucratic inefficiencies: Slowing the expansion of promising startups.
- Infrastructure gaps: Most AI innovation is concentrated in Algiers, Oran, and Constantine, leaving rural areas underserved.
More than 750 startups have been officially labeled under Algeria’s national startup framework, spanning technology, healthcare, and renewable energy. However, wider digital infrastructure investment is essential to sustain growth beyond urban centers.
If Algeria wants this fund to succeed, it must address these structural barriers head-on.
Final Thoughts
The $11 million AI investment fund has generated significant excitement in Algeria’s tech ecosystem. If executed well, it could position Algeria as a leader in AI innovation.
However, whether this initiative translates into real progress or fades into political rhetoric remains to be seen. Long-term investment, regulatory support, and infrastructure upgrades will determine its true impact.
