Algeria’s parliament recently passed two laws that could reshape the country’s startup landscape. The first, the Fintech Law, creates a regulatory sandbox for digital payments, lending, and insurance. The second, the Venture Capital Law, allows local and foreign funds to invest in Algerian startups with full repatriation of profits. Together, they remove long-standing barriers that kept Algeria off the North African tech radar.
The Fintech Law, published in the Official Gazette in late 2024, sets clear licensing rules for non-bank payment service providers. Companies can now apply for a “PSP” license through the Bank of Algeria, a process that takes 90 days instead of the previous 18-month wait. The law also caps transaction fees at 0.5% for domestic transfers and 1.5% for cross-border, a move aimed at undercutting informal hawala networks that handle an estimated $5 billion annually in remittances from the Algerian diaspora.
Under the Venture Capital Law, which came into effect in January 2025, funds registered with the Algerian Securities Exchange Commission (COSOB) can invest in startups without needing prior approval from the Ministry of Finance. The law exempts capital gains from corporate tax for five years and allows foreign investors to repatriate 100% of profits after paying a flat 10% withholding tax. According to COSOB, 12 funds have already applied, targeting a combined $200 million in commitments by the end of 2025.
Sandbox opens for 20 startups
Other sandbox participants include PayDZ, a peer-to-peer payment app, and AssurTech, which offers on-demand insurance for gig workers. The Bank of Algeria has set a 12-month limit for the sandbox, after which startups must either exit or apply for a full license.
Diaspora remittances become investable
“Before, we had to route investments through France or Dubai,” said Samir Boukhalfa, a Paris-based entrepreneur who invested in VOLZ. “Now, I can wire money directly to Algiers and get the same protections as a local investor.” The fund’s first investment was a $1.5 million seed round in EcoWatt, a solar energy startup based in Oran.
Public listing sets valuation benchmark
Leancubator recently backed four startups in its latest cohort: BlueWave (marine biotech), GreenHarvest (vertical farming), FoodLink (agri-tech supply chain), and PayDZ. Kadi said the new laws have already attracted interest from European VCs. “We’ve had calls from Berlin and London asking about deal flow,” she said. “The question is no longer ‘Why Algeria?’ but ‘How fast can we deploy?’”
Bureaucracy still slows rollout
The Ministry of Startups, created in 2023, has also faced criticism for lacking enforcement power. “They can’t override the Bank of Algeria or COSOB,” said a lawyer who advises fintech startups. “Until there’s a single regulator for digital finance, we’ll have these bottlenecks.”
Key takeaway for entrepreneurs
💡 Starting a business in Algeria? GlobalStart guides you step by step: procedures, real costs, company forms (SARL, EURL, SPA) and CNRC registration.