Algeria’s Digital 2026 plan is gathering pace this year, with cabinet-level discussions on digital infrastructure and entrepreneurship taking place every month. The initiative, launched by President Abdelmadjid Tebboune in 2023, aims to add 3 million new digital jobs by 2026 and double the number of tech-based startups. According to the latest Digital 2026 steering committee minutes, reviewed by Reuters this week, the government has now earmarked 280 billion Algerian dinars (around US$2.1 billion) for high-speed internet rollout, cloud data centers and business incubators.
One concrete marker is the planned Algiers Digital Park, a 100-hectare campus in Sidi Abdellah, 30 km south-east of the capital. The park will host 5G testbeds, a cybersecurity academy and a fund of 60 billion dinars for seed-stage startups. Algeria’s Ministry of Digital Economy says the first 20 companies will move in before the end of 2025; full occupancy is expected by 2027.
For entrepreneurs, the numbers translate into clearer timelines. A 50 % cut in the corporate income tax rate for tech firms registered in Sidi Abdellah comes into effect next month, retroactive to January 2025. The cut lowers the rate from 26 % to 13 %, matching the regime already in place for renewable-energy businesses. At the same time, Algeria’s postal bank, BADR, has opened a 10 billion dinar line of credit exclusively for digital startups, with a three-year grace period. Badreddine Boualam, the bank’s CEO, told APS this week that 650 loan applications have already been filed, mostly from founders under 35.
Two weeks ago, Algeria’s customs authority (DGD) simplified the temporary-import regime for IT hardware used in startups. Companies can now bring in servers, routers and laptops without paying customs duty, provided they stay inside Algeria for at least 12 months. The DGD says the change removes about 18 % of upfront costs for early-stage teams.
For the diaspora, the plan offers a fast-track route to co-invest. A new decree signed by the Prime Minister in October 2025 allows Algerians abroad to set up 100 % foreign-owned digital ventures without a local partner, reversing a 2009 rule that capped foreign equity at 49 %. The diaspora ministry has opened a one-stop desk in Algiers airport, staffed by bilingual officers, to process these applications within 15 working days. So far, 87 applications have been approved, with 40 % coming from France and 30 % from Canada.
Education is the third leg of Digital 2026. Algeria’s National Institute of Telecommunications (INTTIC) in Oran reports a 40 % rise in enrollment for its AI and data-science master’s program this academic year. The institute has also partnered with Algeria’s leading university, Houari Boumediene University of Science and Technology, to run weekend coding bootcamps in Algiers and Constantine. These bootcamps are free for Algerians under 25 who commit to launching a startup within 12 months.
Telecoms regulator ARPT recently published spectrum-auction rules for 5G licenses, scheduled for the first quarter of 2026. The auction will offer four blocks, each with 100 MHz of mid-band spectrum, reserve prices starting at 30 billion dinars per block. ARPT Chairman Mohamed Anouar Rahab said the proceeds will fund rural fiber rollout, part of a 15 billion dinar program to connect 1,200 villages by 2027.
Foreign investors are watching the pace of reform. During a recent roadshow in Dubai, Algeria’s Minister of Digital Economy, Nassim Diafat, told Reuters that the government is negotiating a 500 million euro loan from the European Investment Bank for a national data-center cluster in Oran. The cluster would offer Tier-IV facilities to both local and international clients, with power sourced from Algeria’s 2 GW solar park in Ain El Hadjar.
Local entrepreneurs, however, still cite friction points. Walid Mebarki, founder of Algiers-based AI recruitment startup HireDZ, said customs clearance for imported servers remains unpredictable, despite the new decree. “We saved on duty, but the paperwork still takes three weeks,” he told APS in an interview last month. Startups in the south complain that fiber-optic cables to Tamanrasset and Adrar are still throttled to 2 Mbps, far below the 100 Mbps minimum specified in Digital 2026.
Key takeaway for entrepreneurs
Digital 2026 is turning Algeria into a lower-cost launchpad for tech startups, with tax cuts, faster customs and dedicated funding. Diaspora founders can now own ventures outright and get visas processed in 15 days. Rural internet remains uneven, but 1,200 villages are promised fiber by 2027.
💡 Starting a business in Algeria? GlobalStart guides you step by step: procedures, real costs, company forms (SARL, EURL, SPA) and CNRC registration.