Exploring Africa, just a moment...
Let’s talk about Algeria, land of desert dunes, revolutionary grit, and, as it turns out, a (un)surprisingly fast-growing startup ecosystem. And what the hell do I know about Algeria other than the one and only, and absolutely stunning Olympic gold medalist, Iman Khalif? Well, a few things, actually. Enough to write this and hopefully leave you both informed and mildly obsessed.
But before we dive in, let's get something existential out of the way. Algeria is also the birthplace of Albert Camus, the philosopher of absurdity himself, who spent much of his life grappling with questions of meaning under the North African sun. Maybe that’s what it means to be Algerian, pushing forward even when the odds are absurdly stacked, whether in the ring like Khalif or in the boardroom like the country’s tech founders.
Historical Legacy and Contemporary Context
Algeria won independence in 1962 after a brutal anti-colonial war that lasted for eight years that is estimated to have killed anywhere between 400,000 to 1.5 million Algerians. The nations independence came with profound social and economic disrubtion. New post-independence leaders Ahmed Ben Bella later succeeded by Colonel Houari Boumedienne nationalized land and industry, pursuing a state‐led socialist model. In 1971 Algeria carried out a sweeping agrarian reform, breaking up large farms and reorganizing land into state-run cooperatives. In the same year, all French oil and gas interests were nationalized under the newly powerful state company Sonatrach. Oil revenues (especially after the 1973 price jump) financed massive industrialization plans: each major sector was run by a government corporation. These years saw new schools, hospitals and infrastructure, but also a rigid one-party system and heavy bureaucracy.
Discoveries of oil and gas turned Algeria into an energy powerhouse (by the 1980s, hydrocarbons generated ≈90% of export revenues). This wealth funded ambitious infrastructure and subsidies, but also entrenched a “rentier” economy. When the oil crisis of 1980s happened social unrest ensued, people rioted over bread and the country cracked open politically. Riots allowed for opposition parties to emerge, with the first multiparty elections giving rise to the Islamic Salvation Front (FIS). What followed is now known as the Black Decade, a brutal civil was between security forces and Islamist groups. It is estimated that around 150,000 Algerians were killed and families of victims as searching for answers to this day.
The 2000s oil boom revived growth, but by the 2010s the economy stagnated and youth felt betrayed. Youth unemployment remained dire, fueling frustration. In 2019 Algeria’s massive peaceful Hirak protests broke out, driven largely by young people,forced President Bouteflika to resign. Protesters demanded an overhaul of “Le Pouvoir” and a new social contract, a sign that Algeria’s history of resistance is infusing today’s politics.
Taken together, these layers of history, colonial plunder, postcolonial socialism, and civil war have shaped Algeria’s modern reality. On the positive side, education and infrastructure did improve dramatically after 1962, and Algerians won significant independence by controlling their oil wealth. But the economy still reflects those legacies of conflict and control. Let's take a look at Algeria today.
Economic Diversification and Growth
Algeria’s economy has long been an oil-and-gas one-trick pony. Hydrocarbons still make up the vast majority of exports, and for a while that worked. But after decades of price shocks, even the government knows it can’t keep riding the oil train forever.
For decades exports were overwhelmingly oil and gas (over 90% of export revenue historically). Today, world‐bank‐supported reforms are broadening the base. The National Economic Recovery Plan (2020) aims to boost the non-hydrocarbon sector by strengthening digital services, agriculture, tourism, and manufacturing. Non‐hydrocarbon exports have tripled since 2017 to $5.1 billion (about 2% of GDP in 2023), signaling early success in sectors like agriculture, chemicals and steel. According to the African Development Bank, Algeria’s non-hydrocarbon GDP was expected to grow by 4.3% in 2024.
And while reforms haven’t always been smooth, the country has made notable strides in reducing bureaucracy for business registration, digitizing public services, and launching support programs for local entrepreneurs. New laws and systems aim to attract investment and efficiency. A 2022 Investment Law offers tax breaks and streamlined rules (via a new investment agency). The Algerian Port Community System digitally links customs, shipping and traders to cut clearance times. In tandem, Algeria lifted some hydrocarbon investment restrictions and is rationalizing public spending to transition from state-led to private‐sector growth.
Tech Ecosystem & Innovation Landscape
Let’s get this out of the way: Algeria’s tech scene is not Silicon Valley, and thank goodness for that. What it is, though, is steadily emerging, uniquely Algerian, and increasingly impossible to ignore.
The country launched its Algerian Startup Fund in 2020, with an initial capital of 1.2 billion dinars (approx. $9 million), specifically earmarked for innovative early-stage companies. It was part of a broader national strategy to turn Algeria into a “knowledge-based economy”.
The Algiers Smart City project and hubs like Sylabs and IncubMe are slowly but surely cultivating an ecosystem where techies, creatives, and hustlers can cross-pollinate. The goal is simple, to stop the brain drain and give talented Algerians a reason to build at home rather than abroad.
Despite connectivity and infrastructure challenges, Algeria's tech startups have shown serious grit. Think Yassir, the ride-hailing app-turned-super-app that raised $193 million to date, making it one of the best-funded African startups in history. Think TemTem One, one of the first homegrown mobility platforms.
Beyond the venture capital numbers, what stands out is how many of these startups reflect distinctly Algerian problems and solutions. Whether it’s the logistical hurdles of getting your documents stamped or the lack of formal banking access, the next-gen founders are building for Algeria, not just in Algeria.
Youth Cultural Renaissance and Digital Expression
Algeria’s youth are not just the future, they're the now. Nearly 70% of the population is under the age of 30 in 2025, and they’re more online, educated, and eager to build something new than ever before.
Culturally, there’s a quiet creative renaissance. Platforms like DZair Daily and Vinyculture document the explosion of street art, indie music, and a new wave of cinema. And yes, the storytelling has evolved beyond war epics. We're seeing narratives that center on women, migration, queerness, and working-class realities. It’s a far cry from Camus’ detached intellectualism, this generation is shouting, painting, coding, and rapping their truths into being.
There’s a fusion happening between digital fluency, ancestral memory, and a rebellious spirit that refuses to be boxed in. Online spaces like Instagram Reels and YouTube vlogs have become launchpads for fashion designers reinterpreting Amazigh patterns, comedians roasting post-colonial politics, and dancers mixing rai and drill.
It's not mere culture as consumption, but culture as confrontation, creativity, and community-building.
Algeria, (Re)Imagined
There’s something deeply existential (yes, Camus again) about Algeria’s current moment. It's a nation asking: what comes after revolution, after oil, after survival? Algeria today is the sum of its contrasts. Beneath the familiar surface of oil fields and desert, a dynamic new story is unfolding: one of startups bootstrapped in Algiers apartments, Rai refrains sampled into electronic tracks, and markets full of hand-embroidered styles.
The recent data and anecdotes show real change, digital connections and social media presence are at record highs, non-oil exports are growing, and creative forums like Canex explicitly tie culture to prosperity. These trends suggest Algeria is leaning into its youthful energy.
Of course, bold commentary does not ignore the frictions. Diversification must deepen (current non-oil GDP share is still small), and the tech ecosystem needs capital and market access. Culturally, openness and freedom of expression remain works in progress. But the groundwork has shifted: the government talks of knowledge economies, and young Algerians are not waiting passively. They use coding bootcamps, TikTok, and crowdsourcing to voice their vision.
Whether you’re a venture capitalist, a Pan-African culture nerd, or just someone tired of hearing only the same five countries in every “Africa Rising” conversation, keep your eye on Algeria. Trust me, they’re doing more than surviving absurdity. They’re thriving through it.
