Algerian government has launched a startup accelerator, “Algeria Venture”, barely five months after launching its first ever fund for startups. Located at the Parc des Grands Vents (Dounia Parc) in Algiers, the startup accelerator will be “the showcase” of innovative Algerian projects on the international scene, according to the country’s Minister Delegate for the Knowledge Economy and Startups, Yacine El-Mahdi Oualid.
Here Is What You Need To Know
- The new accelerator Mr. Oualid said, will operate according to the same management model as international accelerators. The accelerator will also be part of a network that will be woven across Algeria with other projects of the kind that are in progress in the East, West and South of Algeria.
- Algeria Venture will also introduce, according to him, the concept of “Open Innovation” which will allow Algerian and foreign companies to “outsource” their innovation projects by taking advantage of products and services developed by startups in the area of interest to them.
- The site for the new accelerator inaugurated in the capital Algiers can accommodate up to 30 startups for a period ranging from six to 12 months, said the minister, adding that calls for demonstrations will be “periodically” launched in order to select projects having strong growth potential and which would be “interesting” to integrate into the accelerator.
- Mr. Oualid also said a little more than 300 companies between startups and innovative projects have been labeled, of which around ten startups have benefited from funding from the Algeria Startup Fund (ASF). He however highlighted the “accessibility” of the ASF which, in addition to receiving applications from project leaders who request funding, contacts startups to offer them funding.
Read also: A Look At The 26-Year-old Algerian Yacine Oualid, Africa’s First Ever Minister of Startups
A Country Greatly Supporting Startups In Recent Times
In December 2020, Algerie Telecom, Algeria’s state-owned telecom operator, unveiled new specifications for its calls for tenders. The new specifications would facilitate access of over 2,300 technological microenterprises to public procurement.
This followed the launch of the Algeria Startup Fund in October the same year. The launch was inspired by the statement of the President of the Republic, who during the meeting of the Council of Ministers held in January 2020, ordered the development of an emergency program for startups and small and medium-sized enterprises (SMEs), in particular the creation of a special fund or a bank intended for their financing. Following that, Executive Decree 20–254 of September 15, 2020 creating the national committee for the labeling of “startups”, “innovative projects” and “incubators” was published in the last issue of the Official Journal, Tunisia’s national gazette.
Labelled startups and incubators in Algeria have also been the greatest beneficiaries of the country’s newly passed finance law. The 2021 Finance Act provides for changes in taxes (Tax On Professional Activities, TAP; and Value-added Tax VAT). Under the law, companies in Algeria with a startup label will be exempt from several taxes, starting with the TAP (tax on professional activity) and the IBS (tax on corporate profits. companies) for a period of 2 years from the date of obtaining the said label.
Algeria Venture
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