Un cadre réglementaire pour les organismes de placement collectif à capital risque
Summary of the New Regulation on Venture Capital Investment Organizations in Algeria
A recent regulation issued by the Commission for the Organization and Supervision of Stock Market Operations (Cosob) has defined the operational rules for venture capital investment organizations (OPCR) in Algeria. Published in the official Journal No. 28, this regulation (No. 24-02) received approval from the Ministry of Finance on March 19, earlier this year.
The OPCRs are designed to mobilize financial resources from both the public and private sectors, channeling them into direct investments in companies, particularly startups and small to medium-sized enterprises (SMEs). According to the new regulation, these organizations serve as investment vehicles aimed at acquiring stakes in unlisted companies, with the intention of either returning these investments or selling them in the future.
These entities can be structured as a Venture Capital Investment Company (SICAR) or a Venture Capital Mutual Fund (FCPR). The regulation outlines the responsibilities of Cosob in terms of licensing, governance, assessment of these organizations, protecting investors, and ensuring transparency in transactions.
To establish an OPCR, the initial capital requirement is set at a minimum of 50 million dinars. The Cosob emphasized in a statement that this new framework is a significant boost for the startup ecosystem. It simplifies the creation and management of these funds, thereby encouraging the participation of investors and funders in fostering innovation and entrepreneurship.
Venture capital financing is considered a more viable and effective option for these types of businesses when compared to traditional financing mechanisms. This regulation is part of broader economic reforms ongoing in Algeria, aiming to enhance the business climate, promote investments, and develop the network of startups and SMEs, which are essential for economic growth and job creation.
Cosob reaffirmed its commitment to continue enhancing the regulatory framework for financing by strengthening non-banking financial intermediation instruments, which will provide new funding opportunities aligned with international best practices. This move is intended to reinforce the role of the financial market as a strategic tool for fostering economic growth in Algeria.
Conclusion
The introduction of this regulation marks a crucial step in developing a robust financial ecosystem to support startups and SMEs in Algeria. By streamlining the processes and offering investment channels that cater to the unique needs of these businesses, the government aims to foster innovation and stimulate economic development.
