2023-12-23 19:53:25
ALGIERS – The Minister of Finance, Laaziz Faid, announced Saturday in Algiers, the official launch of crowdfunding for the benefit of start-ups which will allow the latter to enter into contact, from dedicated platforms, with investors wishing to contribute to the supply of financial resources, in an approach aimed at encouraging entrepreneurial initiatives.
A statement that was made during Mr. Faid’s speech, delivered on the occasion of the annual meeting of the Commission for the Organization and Supervision of Stock Exchange Operations (COSOB), which was dedicated to the official launch of the crowdfunding as an innovative mechanism made available to start-ups, as well as the presentation of the annual report on securities for the year 2022, in the presence in particular of the Minister of Post and Telecommunications, Mr. Karim Bibi Triki, from the Minister of the Knowledge Economy, Start-ups and Micro-enterprises, Mr. Yacine El-Mahdi Oualid, from the Governor of the Bank of Algeria, Mr. Salah Eddine Taleb, from the general directors of the banks public and insurance and finance companies, as well as that of the general director of the Algiers Stock Exchange, Mr. Yazid Ben Mouhoub.
Mr. Faid specified that after the publication in the official journal of COSOB regulation No. 01-23, setting the conditions of accreditation and activity of participatory investment advisors and their supervision, there now exists a legal framework governing the operational conditions for the entry into force of a new element in the financial market called participatory investment advisor.
The minister stressed that this regulation “will allow a large number of people to benefit from crowdfunding from digital platforms, through direct and transparent contact between start-ups seeking financing and investors. wishing to contribute to the provision of financial resources.
The minister also indicated that COSOB, in its capacity as stock market regulatory authority, aims, through the creation of the status of participatory investment advisor, to provide additional support for entrepreneurial systems in a global manner, in collaboration with all stakeholders in the startup sphere, with the aim of supporting the entrepreneurial ecosystem.
In this same context, Mr. Faid did not fail to insist on the fact that this system represents one of the means of financing entrepreneurial initiatives and start-ups, and that it is a “complement to other mechanisms already in place.
Mr. Faid also recalled the existence of a support and development fund for private equity companies which allows them to hold more than 49% of the capital of the start-up.
In addition, encouraging the creation of start-ups, particularly those founded by young entrepreneurs on the basis of innovative ideas, particularly in the field of information technology, will allow the improvement of services intended for citizens, adds Mr. Faid, emphasizing that this is a priority area for the public authorities.
The minister also underlined that the fruits of this “ambitious and encouraging” policy are reflected in the appearance of thousands of start-ups “which have left their mark on the international level”, particularly in the areas of financial technology, something which has greatly contributed to the modification of the international financial landscape.
He stressed that the institutions of the financial system in Algeria “have taken important steps” in digitalization, particularly in terms of digitalization of financial transactions and financial securities, affirming that the emergence of innovative companies required the adaptation of frameworks legal regulations governing their financing, “in order to continue to ensure a high level of security of companies and transactions, and therefore the protection of the interests of investors”.
Thus, he continued, “the public authorities ensure that they support and develop the dynamic fabric of young businesses with high development potential in sectors of activity and across the entire national territory, the objective of applied policies, in this sense, being to strengthen the spirit of initiative, by providing financing and support to start-ups and micro-enterprises to enable them to carry out growth projects”, adds Mr. Faid.
The president of COSOB, Youcef Bouznada, affirmed that the urgency of finding financing formulas adapted to the specificities of start-ups and innovative companies, including participatory financing, was dictated by the development marking the field of entrepreneurship.
Financing is the problem for most start-ups, especially with banks requiring a lot of guarantees, he added.
Established under the 2020 finance law, the crowdfunding system allows the collection of funds for the benefit of start-ups via a digital platform.
The year 2022 was marked by a “notable” evolution in terms of market capitalization (+48%) and growth of 8% in the overall value of stock transactions in the Algiers financial center.
Created in 1993, COSOB is responsible for organizing the securities market (shares and securities) and ensuring, in its capacity as a regulatory authority, a better investment climate, in addition to protecting investors.
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