Yacine Oualid is one of the biggest surprises of Algeria’s new national government. On January 02, 2020, aged only 26, Yacine Oualid became Algeria’s new Minister of Startups — a new newly created ministry under the newly elected President Abdelmadjid Tebboune’s administration.
Yacine Oualid studied at the Faculty of Medicine of University of Sidi Bel Abbès.
Prior to becoming Algeria’s Minister of Startups, in June 2016, Yacine Oualid created SSH, a company specializing in cloud solutions for businesses, which would later become the first private web host in Algeria. In September 2019, he and his partner founded Smart Ways3, a startup in the field of logistics and geolocation. In December of the same year, he founded Bright Solutions, a leading IT company providing IT solutions and services, headquartered in England.
In this interview with Muriel Edjo of the Ecofin Agency, he reveals the major projects that will be his priorities and the new ambitions of Algeria as it concerns startups and Algeria’s digital economy.
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As Minister of Startups, a department specially created in the context of the fourth industrial revolution, what exactly are your responsibilities?
If I have to sum it up, I would say that the New World Economy is taking shape, and that Algeria wishes, and will, become a major player. My goal, with all the players in the sector, is to participate in this transformation of the largest country in Africa.
In a more practical way, my role is first of all to set up a legal framework which is favorable to startups. Once set up, this legal framework will facilitate the creation of startups and their financing. The goal is to see it materialise in a few months’ time, Algerian champions, who will be able to offer their services all over the world. Algeria is determined to become an African pillar of innovation and we want to offer our entrepreneurs the best framework for entrepreneurship and innovation.
In addition, my mission touching on many other ministries, I also have the role of ensuring that all the other institutions adhere to this new vision, of an economy whose spearhead will be innovation and startups.
Being in this ministry is a big privilege, especially since we have the full support of the President of the Republic and the Prime Minister. This is very encouraging because, for the first time, in Algeria we have a government that has placed its trust in young people.
What actions are planned by your ministry to boost the local Startup industry?
One of the first steps will be to identify startups using a label. This label will allow access to a certain number of facilities, fiscal and non-fiscal advantages, bank accounts in foreign currency and facilities to export services. Labeled companies will also be able to benefit from the assumption by the State of the patent registration whether at national or international level.
We are also in the process of developing a new legal form for companies that is more suited to startups. It will make it possible to raise funds and make an IPO more simple and possible. We will also develop a legal framework for crowdfunding.
Finally, we are engaging with other departments on certain penalties startups in Algeria are exposed to, such as access to online payment; the quality of internet connection; the difficulties in obtaining certain authorizations; and the absence of Datacenter with international standards.
As such, I would like to emphasize that we are currently enjoying great collaboration from the other ministerial departments and that we have already obtained successes in a few weeks. For instance, the Ministry of Labor has just created an appropriate framework for the status of freelancers which will allow our startups to pool scarce resources in specific areas of development; the Ministry of Commerce has equally taken into consideration our recommendations to facilitate the export of services; and the Ministry of Housing has called on startups to digitize its services .
Can we qualify a new SME as a Startup? What criteria will prevail to identify a Startup?
A startup is above all a company that offers an innovative service or product, with strong growth potential and even if the criteria to define the startup differ from one country to another, the concepts of innovation and ” scalability” (the anglicism which translates to the fact of having a reproducible business model on large markets) are universal.
In order to award the “startup” labels, we will concern ourselves with 4 criteria: innovation, scalability, age of the startup which must not exceed 8 years, and size (turnover and number of employees)
In announcing a startup ministry, the Head of State also announced a dedicated bank. Digital players like LegalPlace believe that a reliable banking system and advantageous taxation are more necessary than a dedicated bank which risks becoming a National Youth Employment Support Agency (ANSEJ) bis. What do you think ?
To begin with, there will be a fund for startups, the latter being financed more by opening capital than by debt. This fund will make it easier for startups to find financing.
In addition, our action plan provides for favorable taxation, whether for startups or investors. Our goal is not for Algeria to mass-produce startups, but rather to see the birth of Algerian champions who will conquer markets all over the world and which will lead entire sectors (developers, logistics for e- trade…).
What is the transformative potential of the Startup ecosystem on the Algerian economy?
Startups can become the spearhead of the Algerian economy, an economy which for many years has been dependent on the hydrocarbon sector and which seeks to renew itself. In the digital sector, they can quickly create jobs and wealth.
The digital economy now accounts for more than 30% of global economic growth, so we are at an important turning point in our history that should not be missed. The government’s interest in startups and the creation of a ministry dedicated to their promotion testify to the importance of this subject for the Algerian economy.
In 2019, the Ministry of Higher Education and Scientific Research announced the establishment of seven ICT incubators in 2020. What role will your ministry play in achieving the objectives of these strategic structures?
Creating solid bridges between the academic and entrepreneurial world is a great challenge for us and we are working in close collaboration with the Ministry of Higher Education so that the Algerian university facilitates entrepreneurship. These support structures within the university will allow students to acquire soft skills. Our ministry also aims to encourage the learning of programming languages in all sectors. The incubators will allow young students to get started in entrepreneurship by relieving them of many administrative and practical aspects. Through all of this, we hope to make the university an important player in the startup ecosystem in Algeria.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
He could be contacted at udohrapulu@gmail.com