• Algeria launched its first AI and cybersecurity start-up cluster to accelerate digital job creation.

• More than 7,800 start-ups are registered, with a target of 20,000 by 2029.

• Youth unemployment near 30% is driving the government’s push toward a digital economy.

The Algerian government has taken a concrete step in its economic diversification strategy. On April 18, it launched the country’s first start-up cluster focused on artificial intelligence and cybersecurity, according to a statement from the Ministry of Higher Education and Scientific Research.

In practical terms, the cluster groups innovative companies that pool resources, networks, and expertise within the same sector. Authorities held the launch ceremony at the Chahid Abdelhafid Ihaddaden Scientific and Technological Hub. Higher Education and Scientific Research Minister Kamel Baddari attended the event alongside Knowledge Economy, Start-ups and Micro-enterprises Minister Noureddine Ouadah and Post and Telecommunications Minister Sid Ali Zerrouki.

The initiative relies on a defined regulatory framework. It forms part of an interministerial decree that sets the terms for creating and organizing start-up clusters. The government aims to strengthen integration between universities, scientific research, and businesses to accelerate the conversion of innovative projects into impactful economic entities.

The government described the cluster as “a qualitative step in building an integrated national innovation ecosystem,” aiming to “strengthen start-up competitiveness and increase their capacity to create value.” According to official portal data, more than 7,800 start-ups are registered on the platform, including 2,300 that benefit from official labeling and tax incentives. Minister Ouadah said the government targets 20,000 labeled start-ups by 2029.

This initiative comes within a rapidly expanding but still fragile ecosystem. The number of innovative university projects increased from 6,000 to 9,000 between 2023 and 2024, marking a 50% rise, according to a statement by Minister Ouadah before the Higher Youth Council.

However, growth remains uneven across regions. More than 70% of start-ups are concentrated in the Algiers region. Meanwhile, the Algerian Start-up Fund, with capital of 1.2 billion dinars (about $9 million), continues to face challenges in distributing financing beyond the capital.

This article was initially published in French by Félicien Houindo Lokossou

Adapted in English by Ange J.A de Berry Quenum