Startups in Algeria may be the next in line to get a Startup Act (a law designed specifically for startups) in Africa. The Algerian Minister of Micro-enterprise, Startups and the Knowledge Economy, Yassine Djeridene has announced that his sector was working to establish a favourable business climate and a specific legal framework for micro-companies and startups, with a view to strengthening innovation and technological transition.

“The legal framework for startups will be established next July to provide greater effectiveness and efficiency in the creation of innovative businesses,” the minister said. 

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• Referring to the policy of his sector during the forum of the daily El Moudjahid, the minister said that efforts were currently focused on the establishment of a favorable climate and a specific legal framework for startups and micro-enterprises, in addition to strengthening the technological transition to inject real momentum into consolidating the institutional fabric and diversifying the resources and income of the national economy. 
•  Mr. Djeridene indicated that the creation of a favorable investment climate was “necessary” before the support of any project in order to ensure its bearer (project)has a better knowledge of the business world, and to have at his disposal all the required information to carry out a preliminary study of the project and to be in contact with people with experience and expertise in the field of innovation. 
•  Algeria ‘s Startup Act will also make it possible to select projects with added value and able to instil a dynamic in the creation of start-ups, he said.

Read also: How Senegal ‘s New Startup Act Intends To Help Startups …

“National meetings devoted to micro-enterprises and start-ups will be organized, as soon as the current situation improves, characterized by the spread of the Coronavirus in Algeria, and this is to define the types of enterprises and the methods of their support, and put in place the necessary mechanisms for this purpose, “said Djeridene.

 “The important thing is to create efficient and quality companies and not the multiplication of the number of these companies without realizing any added value”, he insisted. 

•  The Minister announced that a file will soon be submitted to the Government concerning the review, reassessment and integration of previous investments with a view to finding solutions and thus saving the micro-enterprises facing the specter of bankruptcy.
• Regarding incubators, he mentioned that a project for the creation of 6 incubators at university level is currently in place, emphasizing the strengthening of Algeria ‘s technological transition to keep pace with current developments at the global level.
• It should be noted that the 2020 finance law provided for new measures in the form of tax incentives for the benefit of startups in Algeria, in particular those operating in the field of innovation and new technologies.
• These are tax exemptions relating to profit tax and value added tax (VAT), with the aim of ensuring the sustainability of these businesses and achieving sustainable economic development in the medium term. Algeria.
• Measures also relate to customs exemptions during the exploitation phase and facilitation of access to land as it concerns the expansion of investment projects.

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