A Regional AI Fund Could Leave Algeria’s Tech Founders Out in the Cold
Amel Saidan, CEO of Betawaves—a tech investment platform operating in the Middle East and Africa—has sounded the alarm. Speaking at a recent UN Economic Commission for Africa (ECA) meeting in Rabat, she argued that North African startups, including those in Algeria, face structural barriers in tapping into the African AI Fund, launched at the 2025 Global AI Summit in Kigali. The fund’s focus, she said, may drift toward East and West Africa, leaving Maghreb-based founders scrambling for alternatives.
For Algerian entrepreneurs, the stakes are high. The country’s digital economy is growing but remains fragmented. While SONATRACH and other state-linked firms experiment with AI for oil and gas optimization, private-sector innovation lags. A 2026 report by McKinsey estimated that Algeria’s AI market could reach $1.2 billion by 2030—but only if startups secure early-stage capital and infrastructure. Right now, they don’t.
Why Algeria’s Startups Need a North Africa-Specific AI Fund
Take computing power. Algerian AI startups often struggle with high costs for cloud services, thanks to limited local data centers and reliance on foreign providers. A regional fund could negotiate bulk discounts with AWS, Google Cloud, or Microsoft Azure, slashing expenses by 30-50%—a lifeline for cash-strapped founders. Meanwhile, sub-Saharan Africa’s focus on mobile-first solutions and off-grid tech may not align with Algeria’s urban, energy-intensive economy.
Financing gaps also widen. According to African Business Magazine, only 12% of Africa’s AI investment flows to North Africa. Algerian startups like DeepSight, which uses AI to monitor desertification, or AlgoMed, a healthcare diagnostics tool, could benefit from tailored grants. But without a dedicated North African window, they’ll compete with deeper-pocketed ventures in Nigeria, Kenya, or South Africa—where government-backed accelerators and diaspora networks provide extra support.
How Algerian Founders Can Fight Back Before It’s Too Late
1. Diaspora Capital: The Algerian diaspora—estimated at 3 million strong in France, Canada, and the Gulf—holds billions in savings. Platforms like Algeria’s National Investment Fund (FNI) could partner with diaspora networks to co-invest in AI startups, mirroring Morocco’s successful Diaspora Investment Fund.
2. State-Business Collaboration: Unlike Tunisia or Morocco, Algeria’s public sector has been slow to engage with startups. But SONATRACH’s AI lab and ETRHB’s digital transformation push show potential. Founders must pressure authorities to allocate 1-2% of the national AI budget to a regional fund, ensuring local startups aren’t shut out.
3. Regional Alliances: Algeria could team up with Tunisia and Morocco to create a Maghreb AI Consortium, pooling resources for cloud infrastructure and joint pitches to global investors. Tunisia’s Tunisian AI Lab and Morocco’s Mohammed VI Polytechnic University are already leaders—Algeria risks falling behind if it doesn’t join the conversation.
The Clock Is Ticking for Algerian AI Ambitions
For Algerian entrepreneurs, the message is clear: Sit up and take notice. The fund isn’t just about money—it’s about visibility, partnerships, and proving that North Africa can compete. Without a unified push, Algeria’s AI ecosystem could remain a niche player in a continent-wide revolution.
Key takeaway for entrepreneurs
Algerian AI startups must act now to secure a slice of the $60 billion African AI Fund—or risk being left behind by faster-moving neighbors. Founders should push for a North Africa-specific fund, leverage diaspora networks for capital, and collaborate with state actors like SONATRACH to access computing power. Without urgent regional coordination, Algeria’s tech ambitions could stall before they even begin.
Sources
💡 Starting a business in Algeria? GlobalStart guides you step by step: procedures, real costs, company forms (SARL, EURL, SPA) and CNRC registration.