le nouveau cadre juridique renforcera l’inclusion financière en Algérie
New Legal Framework to Enhance Financial Inclusion for Start-ups in Algeria
Yazid Benmohoub, the Director General of the Algerian Stock Exchange Management Company, declared on Sunday in Algiers that a newly established legal framework aimed at supporting start-ups has great potential to significantly boost financial inclusion in Algeria. Speaking during the third edition of the Algerian Forum on Financial Inclusion, hosted by the Hadina Tech incubator, Benmohoub stated that the new legislation pertaining to venture capital funds would help overcome major hurdles currently hampering the financing of innovative projects. He identified the reluctance of individual investors to engage in such ventures due to their associated high risks as a critical barrier.
This updated legislative framework is expected to mobilize capital that remains outside the formal economic system, thereby benefiting the economy. Additionally, Benmohoub highlighted that new regulations regarding payment service providers will encourage broader financial transaction use and foster financial inclusion within the country. He emphasized that this framework aims to create a dynamic environment that allows start-ups to flourish until they can enter the financial market, reiterating that the stock exchange remains open to any aspiring start-ups.
The president of the scientific council of the public accelerator "Algeria Venture" described these new regulations as significant advancements that have long been awaited by the start-up ecosystem. He expressed optimism that several already-developed but unrealized innovative projects would soon be implemented, benefiting the Algerian economy and providing citizens with access to innovative fintech solutions.
In this evolving landscape, large enterprises stand to gain from the fintech innovations created by start-ups, especially through "open innovation," which is a strategic focus for Algeria Venture. The same official projected that the year 2025 would witness a progressive widespread adoption of open innovation practices among public and private entities.
The forum featured various panels discussing topics such as artificial intelligence, financial security, and ecological transition, with contributions from key experts and players in the sector.
Artificial Intelligence as a Catalyst for Financial Inclusion
Key participants at the forum agreed that incorporating artificial intelligence (AI) into financial transactions is crucial for achieving true financial inclusion in Algeria. AI can facilitate smoother operations, enhance transaction security, and remove existing barriers. Aboubakr Belloul, head of a division at GIE Monétique, pointed out that studies reveal that the primary obstacle to financial inclusion in Algeria is citizens’ reluctance to adopt various payment methods. He suggested that AI could address these concerns by providing the expected level of security.
Belloul called for expedited updates to regulatory texts to improve customer experiences and attract more users toward electronic payments. Hacène Derrar, a consultant on digital strategies and advanced technologies, praised the government’s commitment to developing the necessary infrastructure for AI, including the creation of data centers. However, he noted that the effective application of AI in the financial sector requires adequate data processing capabilities, trained human resources, and a wealth of diverse data.
During the forum, Hadina Tech recognized five financial institutions with awards for their contributions to the sector’s development. Alliance Assurances received the Excellence Award in Financial Inclusion and Customer Relations, while B-Link Solutions was honored for Excellence in Digital Insurance. SlickPay won the award for the Best Fintech Start-up, and Al Salam Bank and Natixis Algeria were jointly awarded for Innovation in Sustainable Finance.
Conclusion
The new legal measures and frameworks are set to create significant opportunities for start-ups in Algeria, ultimately enhancing financial inclusion for a broader segment of the population. With the support of artificial intelligence and open innovation practices, the Algerian financial landscape is on the brink of transformative changes that promise to benefit both individual investors and the economy at large. Continued engagement and updates in regulatory frameworks are essential to ensure the success and viability of these initiatives. As Algeria moves forward, the collaborative efforts between startups and established financial institutions are expected to pave the way for a more inclusive financial environment.
