General context
Usually, countries interested in the development of Fintech, develop a set of rules to promote innovation, facilitate access to finance and implement a smooth and fast licensing process whenever required.
Algeria did not implement any set of rules in relation to Fintech but developed a regulatory framework for startups.
The framework is directly inspired by the Italian framework which was already implemented in Tunisia few years before its implementation in Algeria
Italian context
Italian regulatory framework started with the adoption of the Decree-Law 179/2012 (18th October 2012)
The Decree, which can appropriately be called “Italy’s Startup Act”,has introduced into the Italian legal system a definition of a new innovative enterprise of high technological value, the “innovative startup”
Since July 2016, innovative startups can write their deed of foundation and articles of association online for free by using a standard customizable model
key aspects of the Italian Startup act :
- Provide legal definition of an innovation startup
- Facilitate company incorporation via an unique platform
- Provide incentives to startups
- Flexible corporate management
- Tax incentives for equity investors
- Preferential access to the SME guarantee fund (Smart&Start Italia) and other public funds (National Innovation Fund and fund for emerging technologies)
- An extensive monitoring system with regular reports to assess the efficiency of the framework. Four reports are published on the Italian Startup Visa scheme (it–en), Digital incorporation, SME Guarantee Fund and Trends in the Business Register. In addition one Minister’s Report is shared every year with the Parliament
- Launch of Certified incubators of innovative startups
Tunisian Context
The Tunisian Parliament passed the Tunisian Startup Act in April 2018. There are four aspects to the Start-Up Act:
- A legal framework that simplifies the start-up launching process
- The creation of a €200m Fund of Funds allocated to specific verticals
- A strategy to consolidate the ecosystem and hubs in Tunisia
- The introduction of Smart capital an organisation that interfaces with different government ministries to manage to implement the advantages of the Start-Up Act
In 2020, the Banque Centrale du Tunisie (or Central Bank of Tunisia – BCT) announced the launch of the regulatory sandbox. It has also established a a fintech committee, a technological hub and a TCB-La.
Algerian Context
More recently Algeria introduces its own startup regime with the introduction of executive decree 20-254 of 15 September 2020
Key aspects of the Algerian Startup decree are:
- Provide legal definition of an innovation startup
- Introduce three types of labels: Startup label, Innovative project label and a label for incubators
- Provide incentives to startups, innovative project and incubators
- Provide preferential access to a public funds and loan from public banks
A new “Law on Money and Credit” is in preparation which apparently will includes specific regulations for Fintech companies. It would certainly introduce a new french influenced bureaucratic framework. This new law is expected before the end of 2022.