Baghdad Bounedjah’s 79 second goal, is the quickest goal to be scored in the final of this tournament, earning a victory for the Desert Foxes.
A penalty decision was overturned in the second half for Senegal as the referee had to use the help of VAR.
But, Algeria continued to show the same defensive quality which they maintained throughout the whole competition to hold to their narrow lead and win their second AFCON trophy after 29 years.
Both teams faced each other early on in the group stages and it was Algeria who won the match after Youcef Belaili scored the only goal of the game.
A repeat of that game happed as Algeria fired in quick after just 79 seconds as Ismael Bennacer sent Bounedjah down the left wing after he won the ball in possession.
The striker then continued to make his run and cut in to find space outside the box as he prepared to shoot.
Salif Sane, who came in for the suspended Kalidou Koulibaly, tried his best to block the shot, which ended up taking a massive deflection and dipped over the Senegalese stopper Alfred Gomis and into the back of the net.
Algeria then allowed the pressure to pile on them as Senegal began to find chances, Mbaye Niang came very close with a powerful shot from 20 yards out which flew just inches over the upright.
A confrontation in the box saw Sadio Mane fortunate not to get penalised after throwing his elbow at Sofiane Feghouli just before a corner.
Moments after the break Senegal continued to push for the equaliser as Ismaila Sarr saw his shot blocked by Adlene Guedioura, the referee was adamant that it was a penalty and pointed straight at the spot.
The decision however was overturned as the Cameroonian referee Alioum Alioum had to use the help of VAR, as the replay showed that Guedioura’s arms where by his side and the hand ball was unintentional.
Chances started to pile up for Senegal, Niang again, but this time he fired his shot into the side netting.
Rais M’bolhi, who has only conceded two goals at this year’s AFCON, produced a brilliant save to tip over Mane’s shot from outside the box, flashbacks of his performance at the 2014 World Cup.
Nonetheless, Algeria continued to defend their one goal lead right till the end to clinch the title of champions of Africa on Egyptian soil.
Algeria XI: M’bolhi, Zeffane, Mandi, Benlamri, Bensebaini, Guédioura, Mahrez, Feghouli (85’ Tahrat), Bennacer, Belaïli (84’ Belaili), Bounedjah (89’ Slimani)
Subs: Doukha, Halliche, Oukidja, Abeid, Boudaoui , Atal, Fares, Ounas, Delort
Senegal XI: Gomis, Gassama, Kouyate, Sane, Sabaly, Ndiaye (59’ Diatta), Gueye, Sarr, Saivet (75’ Diagne), Mane, Niang (85’ Balde)
Subs: Diallo, Ciss, Cisse, Konate, N’Diaye, Thioub, Wague