Algeria has announced the launch of an $11 million artificial intelligence (AI) investment fund, spearheaded by the state-owned telecommunications company Algérie Télécom. This initiative aims to accelerate the growth of AI startups, cybersecurity advancements, and robotics innovation. The announcement was made at the third edition of Algeria’s CTO Forum, where Minister of Post and Telecommunications Sid Ali Zerrouki outlined the country’s vision for AI-driven economic expansion.

AI Investment and Economic Growth

The newly established investment company aligns with Algeria’s broader digital transformation agenda, which seeks to make AI a key contributor to national economic growth. The government has set an ambitious target for AI to account for 7% of the country’s GDP by 2027. As part of this strategy, Algeria is committed to fostering 20,000 startups, expanding its digital infrastructure, and developing AI-centric academic and research institutions.

Fund Allocation and Industry Support

The AI fund will serve as a critical financial resource for emerging startups focusing on AI applications in various industries. Beyond startups, it will also provide support for initiatives in cybersecurity and robotics, ensuring that Algeria remains at the forefront of technological advancements. This funding will be complemented by investments in AI-focused universities and nationwide business incubators to nurture local talent.

National AI Strategy

Algeria’s commitment to AI development has been steadily increasing, marked by the formation of the National Scientific Council for Artificial Intelligence in 2023. This council recently unveiled a national AI strategy for 2025-2030, designed to enhance AI research and development across multiple sectors. The strategy is being led by the Ministry of Higher Education and Scientific Knowledge alongside the Ministry of Knowledge Economy, Startups, and Micro-enterprises.

Skill Development and Education

To ensure the success of this AI-driven vision, Algeria has also introduced training programs under the banner of “Scale Centers.” These centers will equip young professionals with specialized skills in AI, cybersecurity, and cloud computing, essential for driving technological progress. Additionally, the government is prioritizing the establishment of dedicated AI universities, research hubs, and startup incubators to further strengthen the innovation ecosystem.

Future Prospects

The AI investment fund is expected to accelerate Algeria’s transition into a knowledge-based economy by fostering homegrown innovation and attracting foreign investment. The government sees this initiative as a vital step in integrating AI into key industries, including finance, healthcare, and infrastructure. By establishing a strong foundation for AI development, Algeria aims to position itself as a regional leader in artificial intelligence and digital transformation.

As global AI adoption continues to grow, Algeria’s proactive approach to investing in AI startups and technological infrastructure signals a commitment to long-term economic sustainability. The government’s holistic strategy, which combines investment, education, and innovation, underscores the importance of AI in shaping the country’s future. With continued policy support and collaboration between public and private sectors, Algeria’s AI sector is poised for significant expansion in the coming years.