Algeria’s week: digital moves, trade talks, startup push

Digital modernisation: state-led upgrades in education, healthcare, space

Algeria’s government expanded digital infrastructure this week with four new platforms for higher education, designed to streamline administration and student services. The education ministry did not disclose a launch timeline but stated the platforms will integrate student records, course enrolment and examination results into a single system.

In parallel, the Algerian Pharmacists’ Association announced a pilot for electronic prescriptions aimed at reducing fraud in the pharmaceutical supply chain. The system, tested in Algiers and Oran, will require all prescriptions to be transmitted via a centralised digital portal by Q3 2025. The association cited losses of DZD 2.3 billion (USD 17.1 million) to counterfeit and diverted drugs in 2023.

Algeria’s space programme marked progress with an update on the UK-Algeria CubeSat mission AlSat Nano. The satellite, built in collaboration with the UK Space Agency and Surrey Space Centre, is scheduled for launch in Q4 2025 aboard an Indian PSLV rocket. Total project cost is £1.2 million (USD 1.5 million), with Algeria funding 60%. The mission aims to collect Earth observation data for agricultural monitoring and urban planning.

Economic policy: reforms, trade missions, sector openings

Algeria’s finance ministry published amendments to the 2025 finance law that relax restrictions on foreign ownership in 12 sectors, including renewable energy equipment manufacturing and data centres. Sectors remain subject to approval by the National Agency for Investment Promotion (ANDI), which will assess foreign shareholding caps on a case-by-case basis.

On trade, Spain’s ambassador to Algeria confirmed a strong recovery in bilateral trade, up 18% year-on-year in H1 2025 to €1.4 billion. The upcoming Algiers International Fair (26–30 September 2025) will feature Spanish pavilions in agribusiness, automotive components and renewable energy, with 112 Spanish firms registered. Spain is Algeria’s third-largest trading partner after France and China.

Uzbekistan and Algeria held talks on mining and geological cooperation, focusing on phosphate fertiliser supply chains and potash exploration in southern Algeria. Uzbekneftegaz expressed interest in supplying urea production technology to Algerian state firm Fertial. No agreements were signed, but a joint working group will meet in Tashkent in September 2025.

Entrepreneurship: public funds, reform debates and diaspora dynamics

At the Intra-African Trade Fair (IATF) 2025 in Cairo, Algeria launched the “Innov’Algeria Fund”, a DZD 5 billion (USD 37 million) initiative to support startups and young innovators. The fund will provide grants of up to DZD 20 million per project, with 40% reserved for women-led ventures. Applications open on 1 October 2025 via the National Agency for Youth Employment (ANSEJ).

Domestic debate on youth inclusion intensified after the Hirak protest movement’s fifth anniversary. A government-backed report on “Pathways for Reform” proposed expanding vocational training partnerships with Germany and Italy, targeting 100,000 placements by 2027. The report did not specify budget allocations.

Algeria’s diaspora policy drew attention after the president dismissed a minister for refusing to renounce French citizenship, reigniting a long-standing debate. A draft amendment to the Nationality Code would allow dual citizenship for Algerians abroad but requires renunciation of acquired citizenships. The draft is under review by the constitutional council. In France, Algerian football fans at a Marseille match sparked a parliamentary question on national identity laws.

E-commerce and fraud: phones, data and systemic gaps

Investigative reporting traced the resale of stolen European mobile phones in Algerian markets. Customs data show 182,000 devices were seized in 2024, but local retailers report weekly arrivals of up to 3,000 units via informal networks. Phone theft reports in France rose 11% in 2024, with Algerian markets identified as a primary destination for resale.

Startups: funding, accelerators and institutional capacity

The African Development Bank (AfDB) concluded a capacity-building programme for Project Management Units in Algeria, training 47 officials in financial management and procurement for infrastructure projects. The programme, part of a €24 million grant, targets 300 officials by December 2025.

Two immigrant founders of a US prediction market startup raised USD 185 million from investors including Andreessen Horowitz and Paradigm, valuing the company at USD 1.2 billion. The founders, both of Algerian origin, launched the platform in 2023 after securing a US Commodity Futures Trading Commission licence. The company employs 82 staff, 14 in Algeria via a remote team.

Google’s Startups Accelerator Africa programme opened applications for its eighth cohort, with Algerian startups eligible for the “Market Access” track. The programme provides six months of mentorship, cloud credits and investor introductions. Previous Algerian participants reported raising USD 4.2 million on average within 18 months of graduation.

Solar energy: exports, partnerships and mine-driven demand

Algeria outlined plans to export solar-generated electricity to Europe via undersea cables, targeting 10 GW by 2035. The state-owned utility Sonelgaz signed a memorandum with Italian grid operator Terna to study a 2 GW interconnector by 2028. The project requires €1.8 billion in investment and regulatory approval from the EU.

Azerbaijan and Algeria discussed renewable energy cooperation, with SOCAR interested in investing in Algerian solar and wind projects. The two sides agreed to form a joint working group by October 2025.

Algeria’s 13th Algerian-Russian Joint Intergovernmental Commission concluded in Moscow with renewed commitments to the renewable energy and mining sectors. Russian companies will assist in modernising the 200 MW Hassi R’Mel solar plant, with a timeline for completion by 2027.

Industry: phosphate, steel and strategic mining

Indonesian fertiliser producer Pupuk Indonesia signed a memorandum with Algerian phosphate miner Somiphos to supply 500,000 tonnes of phosphate rock annually starting 2026. The deal, worth USD 120 million over three years, includes a joint venture for localised fertiliser blending.

China will assist Algeria in reopening the Gara Djebilet iron ore mine, shuttered since 2019 due to flooding. China Nonferrous Metal Mining Corporation (CNMC) will provide USD 85 million in equipment and technical support, targeting 2 million tonnes of iron ore output by 2027. The mine holds an estimated 2.4 billion tonnes of high-grade ore.

Algeria’s steel industry recorded 4.2 million tonnes of crude steel production in H1 2025, up 7% year-on-year. Domestic consumption reached 3.9 million tonnes, with the remaining exported to Tunisia and Libya. The sector employs 18,000 workers, according to the Ministry of Industry.

Foreign investment and tax: legal tweaks, maritime focus

The state-owned shipping company TASAC showcased maritime investment opportunities at an event in Oran, highlighting 12 port projects totalling USD 1.4 billion. Priority projects include container terminal expansions in Algiers and Oran, with foreign participation capped at 49%. The company cited growing container traffic of 1.1 million TEUs in H1 2025, up 9% year-on-year.

The revised investment legal framework maintains a 19% corporate tax rate for new ventures in priority sectors but introduces a three-year tax holiday for startups in renewable energy and healthtech. Foreign investors must still secure approval from ANDI and comply with local content requirements of 30% in capital goods by year five of operation.

Balance of the week

– Digitalisation: Education, healthcare and space programmes advanced, with public platforms and electronic prescriptions taking shape.
– Trade and investment: Spain’s rebound, Uzbek cooperation and Spanish pavilion at Algiers fair signal renewed European engagement.
– Entrepreneurship: DZD 5 billion startup fund launched at IATF; AfDB training concluded; Google’s accelerator opened for Algerian applicants.
– Energy and industry: Algeria mapped 10 GW solar export to Europe; Gara Djebilet mine to reopen with Chinese support; phosphate deal signed with Indonesia; steel output up 7%.

Key takeaway for entrepreneurs
Algeria’s startup ecosystem gained DZD 5 billion in new funding via the Innov’Algeria Fund, with grants available from October 2025. The finance law’s 2025 amendments reduce foreign ownership barriers in renewable energy equipment and data centres, subject to ANDI approval. Entrepreneurs should prepare local content plans and submit investment dossiers before Q1 2026 to benefit from the new tax holidays.