On Tuesday, Algeria unveiled a series of tax reforms to ignite nationwide digital innovation. These measures are part of a comprehensive strategy to transform Algeria into a vibrant hub for technology and entrepreneurship in Africa.

The government aims to stimulate growth within the startup ecosystem by introducing tax exemptions and reductions, which have gained momentum in recent years.

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Key tax incentives for startups

The 2025 Finance Act includes several key provisions that benefit startups and incubators. Notably, the government has introduced exemptions from transfer duties on property acquisitions specifically for these entities.

Additionally, income tax exemptions for incubators have been extended for two more years, contingent upon their official designation renewal.

Another significant aspect of the reforms is the introduction of tax deductions for research and development (R&D) expenses, capped at 200 million Dinars (€1.4 million) per project. These initiatives are expected to encourage local innovation and reduce dependence on foreign technologies.

Yacine El Mahdi Oualid, the former Minister of Knowledge Economy, highlighted the importance of these reforms by stating, “We are committed to creating an environment where innovation can thrive.” This reflects a growing understanding of how technology can drive job creation and economic diversification in Algeria.

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A flourishing startup ecosystem

Since 2020, Algeria has made notable progress in nurturing its digital ecosystem. The establishment of the Algerian Startup Fund in 2021 provided essential public financing for high-growth innovation projects.

By 2023, the number of registered startups had surged to over 5,000, with more than 1,100 certified as innovative projects. The increase in incubators from 14 to 60 during this period demonstrates the government’s dedication to fostering entrepreneurship.

At a recent conference, Meriem Benmouloud, Algeria’s High Commissioner for Digitalization, expressed her vision: “Our goal is to empower local talent and ensure that Algeria is not just a consumer of technology but also a producer.”

This vision aligns with the government’s broader objective of positioning Algeria as a leading economic player on the continent.

The new tax incentives are a key step towards Algeria’s goals. They lower barriers for startups and promote investment in research and development to attract local and foreign entrepreneurs.

These measures are expected to boost Algeria’s digital economy as they take effect. The government’s proactive approach demonstrates its commitment to using technology for economic transformation.