A person operates a grinder in a workshop and sparks are coming out of it. © GIZ / Lucas Wahl

Promoting innovation for green and digital economic growth

Green and Digital Economic Development in Algeria

+ Show all
  • Client

    German Federal Ministry for Economic Cooperation and Development (BMZ)

  • Co-financier

    European Union (EU)

  • Country
  • Political sponsors

    More

  • Runtime

    2022 to 2027

  • Products and expertise

    Economic development and employment

Context

Algeria’s economy is dominated by the oil and gas industry and lacks competition in many areas. To tackle these challenges, the Algerian economy needs to become more digital and greener.

To achieve this, micro, small and medium-sized enterprises (MSMEs) in Algeria, including start-ups, will have to become more innovative. However, the Algerian innovation ecosystem is characterised by several weak points: There is insufficient cooperation between stakeholders and a lack of joined-up thinking between government initiatives. There are also inadequate structural and institutional requirements to promote innovation. In addition to this, many companies do not yet have a sufficient level of key skills and awareness of digital and green technologies.

Objective

An improved innovation ecosystem promotes green and digital economic development in Algeria.

Approach

The project operates in four areas:

  1. Promoting cooperation in the innovation ecosystem.
  2. Increasing the capacity of the ecosystem’s support structures, such as sources of financing and educational institutions.
  3. Putting MSMEs in a position to make better use of digital process and production technologies.
  4. Expanding stakeholders’ knowledge.
    This typically includes the following activities:
    • Advising the government on institutional frameworks to promote start-ups and innovation
    • Assembling a group of advisor​s to Algerian MSMEs who provide support for digital process and production technologies
    • Providing continuing education and advice on innovation projects in agriculture and the food sector

The project receives additional funding from the European Union.

Last update: March 2025

Additional information