Algeria and Cameroon aim to establish themselves as continental leaders in technological innovation.
The startup ecosystems in Algeria and Cameroon are experiencing a dynamic growth, thanks to government initiatives, infrastructure improvements, and increasing investor interest.
### Algeria
Algeria's government has been actively supporting the startup scene through initiatives such as the Algeria Venture & Startup Fund, which has backed over 800 startups across sectors like fintech, healthtech, logistics, and renewable energy since its launch in 2020. This support is further bolstered by a $411 million national Startup Fund and partnerships with the Algerian Investment Fund, leading to substantial capital inflows.
In addition, the state-owned Algérie Télécom has launched an $11 million AI investment fund, aiming to foster the creation of 20,000 startups with AI expected to contribute 7% of GDP by 2027. Infrastructure upgrades include deploying 265,000 km of fiber optic cables and expanding 4G coverage with plans for thousands more 4G sites. Plans announced in spring 2025 include new energy-focused funds supported by the Islamic Development Bank and expansion of AI/ICT financing, signalling targeted efforts to stimulate innovation in strategic sectors.
Algeria's tech startup landscape is young but rapidly evolving, with the government providing foundational support and infrastructure, and an increasing pool of talent and market potential. While some early-stage complexities remain, Algeria is positioning itself as a promising North African innovation hub.
### Cameroon
Cameroon, alongside Algeria, is recognised as part of Africa's next wave of startup hubs due to government-friendly policies and a bilingual market that facilitates innovation and scaling. Though detailed specific policies for Cameroon are less highlighted in the search results, the country's ecosystem benefits from supportive regulatory environments and strategic location in Central Africa, attracting investment and enabling startups to innovate within sectors like fintech.
### Broader African Context
Fintech dominates funding trends across Africa, including in North and Central African nations, with nearly half of all startup investments directed to this sector. Factors such as regulatory clarity, infrastructure quality (notably mobile and internet penetration), market size, and investor networks are crucial for growth.
Angel investing in Africa is booming, with startups raising over $1 billion in the first five months of 2025—a 40% increase from the previous year. Increased collaboration through angel syndicates, international capital and mentorship, and sector-specific focus areas such as fintech, climate tech, and healthtech are fueling this growth.
In conclusion, both countries are supported by policies aiming to improve infrastructure, provide funding, and build ecosystems conducive to startup growth, with Algeria having more detailed visible government programs and infrastructure investments. Cameroon’s ecosystem is growing strongly as part of the broader African startup surge, especially in fintech. This growing momentum aligns with optimistic forecasts for Africa’s startup and fintech sectors, driven by expanding digital infrastructure, regulatory reforms, and increasing investor participation.
Subscribers can sign up here to be among the first to be informed about the latest developments in the startup ecosystems of Algeria and Cameroon. The next issue will be published on July 15.
- The Algeria Venture & Startup Fund, launched in 2020, has supported over 800 startups across sectors like fintech, healthtech, logistics, and renewable energy, receiving backing from a $411 million national Startup Fund and the Algerian Investment Fund.
- Algérie Télécom plans to foster the creation of 20,000 startups with its $11 million AI investment fund, aiming for AI to contribute 7% of Algeria's GDP by 2027.
- Algeria's tech startup scene is receiving substantial capital inflows, with the government deploying 265,000 km of fiber optic cables and expanding 4G coverage, setting plans for thousands more 4G sites.
- Aiming to stimulate innovation in strategic sectors, Algeria's energy-focused funds will be supported by the Islamic Development Bank, with plans for AI/ICT financing expansion announced in spring 2025.
- Cameroon, alongside Algeria, is recognized for government-friendly policies and a bilingual market, fostering innovation and scaling within fintech.
- Fintech dominates funding trends in African nations, with over $1 billion raised by startups in the first five months of 2025, marking a 40% increase from the previous year.
- As a result of angel investing growth, African startups are receiving increased collaboration through angel syndicates, international capital and mentorship, and sector-specific focus areas like fintech, climate tech, and healthtech.
- Both Algeria and Cameroon are pursuing policies to improve infrastructure, provide funding, and create ecosystems that support startup growth, with Algeria having more visible government programs and infrastructure investments.
- The optimistic forecast for Africa's startup and fintech sectors is driven by expanding digital infrastructure, regulatory reforms, and increased investor participation, making it an exciting time for entrepreneurs in education-and-self-development, finance, technology, digital transformation, healthcare, cybersecurity, logistics, mobile, and edtech industries.
