Algeria has made its latest high-stakes bet in the digital economy: artificial intelligence. In a move that combines optimism with a touch of state-led determination, Algérie Télécom has announced the launch of an investment fund aimed at nurturing AI startups, cybersecurity firms, and robotics ventures. The initial amount? A respectable 1.5 billion Algerian dinars (roughly $11 million) — enough to get things rolling.
The initiative was revealed by Minister of Post and Telecommunications Sid Ali Zerrouki at the third edition of the Information and Communication Technologies Forum (CTO Forum Algeria). With the government hoping AI will contribute 7% of Algeria’s GDP by 2027, the urgency is clear. Flanked by the Minister of Knowledge Economy, Startups, and Micro-enterprises, Noureddine Ouadah, and other senior officials, Zerrouki emphasized Algeria’s need to accelerate innovation in the face of a global digital shift.
The plan is ambitious: fostering 20,000 companies in the AI sector and beyond. To bolster this effort, Algeria has already established three major universities focused on artificial intelligence, robotics, and mathematics. Business incubators are also being deployed, with the “Scale Center” training hubs set to open soon to equip young entrepreneurs with the necessary skills.
Algeria ’s growing focus on startups, through the new fund dedicated to AI, is reflected in the career trajectories of its government officials. The Ministry of the Knowledge Economy, Startups, and Micro-Enterprises — created in 2020 to support entrepreneurship — has become an unexpected launching pad for political careers. A recent cabinet reshuffle saw three of its key figures ascend to high-level government positions.
Noureddine Ouadah, previously Director of Startups & Incubators, is now the minister overseeing the very department he once worked in. Holding a PhD in Robotics from LAAS-CNRS in Toulouse, he takes over from Yacine Mahdi Oualid, Algeria’s first startup minister, who has been reassigned to lead the Ministry of Vocational Training and Education. Meanwhile, Sid Ali Zerrouki, formerly Group Managing Director of Algeria Venture, the country’s flagship startup accelerator, now holds the telecommunications portfolio.
The country’s Ministry of Startups has been instrumental in its transition towards a knowledge-based economy, implementing key policies such as the Algerian Startup Fund (ASF), a national startup labeling framework, and Algeria Venture.
While these initiatives suggest progress, there remain significant hurdles. Structural issues such as limited access to online payment systems, bureaucratic bottlenecks, and underdeveloped infrastructure continue to stifle the scalability of Algerian startups. If Ouadah hopes to cement his legacy, tackling these constraints will be central to his tenure.
The numbers also tell a revealing story. Over 750 startups have been officially labeled under Algeria’s national framework, spanning sectors from technology and healthcare to renewable energy. Yet, much of this growth remains concentrated in urban hubs like Algiers, Oran, and Constantine. Expanding beyond these cities will require more than just policy announcements; it will demand serious investment in digital infrastructure and financial mechanisms that support startups beyond the capital.
For now, the announcement of the AI fund has generated a buzz, both in Algeria and abroad. Whether this buzz will translate into a thriving tech ecosystem or simply fizzle out in the coming weeks — as with most political statements — remains to be seen.