Algiers, January 15, 2025 – Algeria’s Minister of Finance, Laaziz Faid, chaired a working meeting on Wednesday focused on assessing the state of venture capital activity in Algeria and identifying strategies to enhance its role in meeting the financing needs of the national economy.
According to a statement from the ministry, the meeting brought together the directors-general of venture capital firms, public banks involved in these firms, and the Director-General of Treasury and Accounting.
In his opening remarks, Minister Faid emphasized the “strategic” importance the government places on diversifying and improving methods of financing the economy. He underlined the growing role of venture capital companies in mobilizing alternative funding sources to complement traditional banking finance.
The minister pointed out that while Algeria’s venture capital landscape is characterized by its “richness and diversity,” there is still a need for greater efforts to establish effective mechanisms for governance and management. These efforts, he said, are part of broader structural reforms aimed at strengthening economic growth and leveraging national resources in the field of financial engineering.
Three Key Focus Areas for Venture Capital
Minister Faid outlined three priority areas where venture capital companies need to concentrate their efforts:
- Supporting High-Growth Companies: Providing substantial financial resources to help these businesses realize their potential.
- Industrial and Technological Restructuring: Enabling businesses to adapt to the structural transformations of the economy.
- Revitalizing the Financial Market: Facilitating the listing of venture capital firms’ equity shares on the stock exchange to stimulate market activity.
Challenges and Opportunities
During the meeting, the Director-General of Treasury and Accounting delivered a comprehensive analysis of the current state of venture capital companies in Algeria. The presentation highlighted several challenges faced by the sector, including issues related to governance, management, and human resource training.
The analysis provided a foundation for identifying shortcomings and opened the door to constructive proposals for addressing these gaps, according to the statement.
Recommendations and Immediate Actions
Following the presentation, a discussion session allowed venture capital executives and their stakeholders to share their perspectives and offer practical recommendations. Key proposals included:
- Developing tailored training programs to build the competencies of human resources in the sector.
- Improving governance frameworks and management practices for venture capital firms.
- Adopting performance-based contracts and objectives for the managers of these companies.
Next Steps and Roadmap
In his closing remarks, Minister Faid called on participants to activate the venture capital sector immediately. He emphasized the need for a clear roadmap and the swift implementation of priority recommendations emerging from the meeting.
The minister also announced plans for a follow-up meeting in the coming months to evaluate the progress of these measures and continue efforts to strengthen the role of venture capital in financing Algeria’s economy.
This initiative reflects Algeria’s commitment to leveraging innovative financial mechanisms to foster economic growth and support the development of dynamic enterprises across various sectors.
For more updates on Algeria’s financial policies and economic developments, visit DZWATCH.DZ.
Author: Nor-Eleslam
