AfDB and Algeria Strengthen Partnership to Boost Startups and SMEs Across Africa

The African Development Bank (AfDB) and Algeria’s Ministry of Knowledge Economy, Startups, and Micro-Enterprises have pledged to deepen their collaboration to accelerate the growth of startups and small and medium-sized enterprises (SMEs) across the African continent. The announcement was made during the closing of the fourth Intra-African Trade Fair (IATF 2025), held in Algiers from 4 to 10 September, marking a significant milestone for Africa’s innovation and entrepreneurial ecosystem.

AfDB’s Commitment to SME Growth

Speaking at the event, Ousmane Fall, Acting Director of the AfDB’s Industrial and Trade Development Department, emphasized that supporting startups and SMEs remains central to the Bank’s mission. He linked this commitment to the Four Cardinal Points laid out by AfDB President Dr. Sidi Ould Tah, which prioritize entrepreneurship as a driver of inclusive and sustainable growth.

“Supporting small and medium-sized enterprises and startups is one of the key pillars of our work,” Fall said. “The Bank will support SMEs through an innovative approach that combines new financing instruments, advisory services, and policy reforms to promote their emergence across the continent.”

Expanding Private Sector Partnerships

The Bank’s delegation met with Algeria Venture, the state-backed startup accelerator, to explore opportunities for collaboration. The two parties agreed to strengthen ties through:

• Partnerships with Algerian startup funds.

• Engagement with private equity and venture capital investors.

• Joint participation in the African Startup Conference, to be hosted in Algiers from 6 to 9 December 2025.

This upcoming conference will serve as a pan-African platform to promote innovation, strengthen entrepreneurial networks, and mobilize investment for youth-driven ventures.

At the closing ceremony, Minister Noureddine Ouadah announced the creation of a new investment fund dedicated to African startups, a flagship initiative of President Abdelmadjid Tebboune, highlighting Algeria’s strategy to place youth and innovation at the heart of Africa’s economic future.

Spotlight on Transformative African Businesses

The AfDB’s Non-Sovereign Operations team presented financing solutions for the private sector and discussed new strategic partnerships with high-growth African firms.

One of the highlights was a meeting with Solewant Group, a Nigerian leader in steel and coatings. The Bank praised Solewant as a model of transformative African enterprise—growth-oriented, industrially focused, and committed to regional self-reliance.

“Solewant perfectly illustrates the type of transformative business the Bank seeks to support,” noted Cédric Achille Mbeng Mezui, Lead for Private Sector Investment Operations at the Bank’s Africa Investment Forum.

Showcasing Innovation Platforms

Throughout IATF 2025, the AfDB shared its expertise in sessions on building Africa’s entrepreneurial ecosystem. Notable contributions included:

• “Building an Enabling Startup Ecosystem”, a session co-organized with UNDP’s Timbuktoo initiative and the African Union, focusing on scaling Africa’s startup ecosystem.

• Afreximbank’s African Research and Innovation Centre forum, where the Bank showcased its Innovation and Entrepreneurship Lab and ENNOVA platform, designed to support African entrepreneurs in scaling businesses and accessing global markets.

Looking Ahead: IATF 2027 in Nigeria

At the conclusion of the fair, the IATF Advisory Council, where the AfDB is an active member, announced that the fifth edition of IATF will be held in Lagos, Nigeria, in 2027. The Bank reaffirmed its commitment to leveraging trade, innovation, and entrepreneurship as key drivers of inclusive growth and industrial transformation across Africa.

Driving Inclusive Economic Transformation

By combining Algeria’s national initiatives with AfDB’s continental mandate, this partnership aims to mobilize capital, build innovation ecosystems, and create opportunities for Africa’s next generation of entrepreneurs.

As African economies diversify and look beyond traditional sectors, startups and SMEs are expected to become the backbone of industrial transformation, job creation, and sustainable growth, ensuring that Africa’s development remains youth-driven and innovation-led.