The Algerian Startup Fund (ASF) has sealed an agreement with the country’s General Directorate of the Treasury to launch a new fund that will see it invest $411 million in local startups across the country’s 58 regional provinces. Each considered startup will receive up to $1 million.
The fund will enable entrepreneurs of innovative projects to start their businesses without the bureaucratic restrictions of conventional financing mechanisms by utilising venture capital as a new method of financing startups.
The Algeria Startup Fund (ASF) was established in 2020 by the President of the Republic of Algeria, Abdelmadjid Tebboune during the first edition of “ALGERIA DISRUPT”.
According to the Algerian ministry responsible for the knowledge economy and startups that reports to the Prime Minister, the Algerian Startup Fund has signed an agreement with the country’s General Directorate of the Treasury and accountant general’s office for the exploitation of the country’s regional (wilaya) investment funds, which have a combined value of 58 billion dinars ($411M), for the benefit of young entrepreneurs through all the ways as part of the implementation of the Government’s Action Plan.
The total value of these investment funds is 58 billion dinars, or one billion dinars ($7M) for each region, according to Okba Hanachi, the new director of the Algerian Startup Fund.
Hanachi emphasised that the Startup Fund will have access to these funds “for investment in startups, with the financing of up to 150 million DA per project ($1M)”
The ASF has funded several initiatives dubbed “Startup” or “Innovative Projects” since its founding and encourages the funding of companies and their startup costs, as well as the possible dangers they may encounter. The ASF’s capital stands at 1.2 billion / DA.
The startup ecosystem in Algeria has been experiencing significant activity recently, especially in light of reforms and new legal frameworks, and as a result of this agreement, the fund will be able to raise the number of investments required.
