Algeria’s National Organisation of Mujahidin (ONM), the official body representing veterans of the 1954–1962 War of Independence, has quietly evolved into a de facto parallel state that now controls a significant share of the country’s small and medium-sized enterprise (SME) financing, according to a recent study by The London School of Economics and Political Science. The research reveals that the ONM and its associated foundations disbursed approximately 120 billion Algerian dinars (around US$880 million) in grants, low-interest loans and in-kind support to 18 000 SMEs in 2024 alone—equivalent to 14 % of the total state budget allocated to the Ministry of SMEs and Start-ups for the same period.
Veterans’ funds outpace official programmes
Diaspora entrepreneurs face uneven playing field
Sectoral focus favours traditional industries
Legal grey zone creates compliance risks
Implications for the wider economy
What entrepreneurs can do now
Key takeaway for entrepreneurs
Algeria’s ONM now controls 14 % of national SME funding, offering faster approvals and lower taxes but limited to veteran-linked applicants. Diaspora entrepreneurs should partner with local veteran-owned firms to access ONM networks, while high-tech founders may need to combine ONM grants with ANSEJ support to cover sectoral gaps. Compliance risks remain high due to unclear repayment rules, so legal due diligence is essential before accepting ONM funds.
💡 Starting a business in Algeria? GlobalStart guides you step by step: procedures, real costs, company forms (SARL, EURL, SPA) and CNRC registration.