Expected since 2018, law 15–18 on crowdfunding is now operational. This follows the publication of the newly passed law in the country’s Official Bulletin (BO). After the adoption of the new law by the two Chambers of Parliament, its entry into force which takes life from this publication, as specified in article 70 of the law.
Here Is What You Need To Know
Presented in March 2018 by the country’s Minister of the Economy and Finance, the new law is part of the efforts of authorities in Morocco to strengthen the financial inclusion of young project leaders and support economic and social development.
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The bill was approved by the government council in August 2019, then presented to Parliament in December of the same year.
Three types of crowdfunding are permitted under the new law. These are loan, equity and grant crowdfunding.
The law only regulates crowdfunding portals, and goes ahead to state that to be eligible for license to own any crowdfunding portal, the applicant must:
- Hold a minimum share capital of 300,000 dirhams ($33.5k). Under Nigeria’s recently approved crowdfunding regulation, this is $262k.
- Have themselves a prevention and risk reduction policy to identify the origin and destination of funds.
- Request additional information regarding the relevant funds.
- Check the banking prohibitions of the various actors.
All activities related to crowdfunding under the new law will be regulated by Morocco’s central Bank, Bank Al-Maghrib.
Nigeria’s Securities and Exchange Commission recently approved a new crowdfunding regulation. Under the new rules, startups are only allowed to raise a maximum of the following amounts within a 12-month period: i) The maximum amount which may be raised by a Medium enterprise shall not exceed N100Million ($260k); ii. The maximum amount which may be raised by a Small enterprise shall not exceed N70Million ($182); iii. The maximum amount which may be raised by a Micro enterprise shall not exceed N50Million ($130k).
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer
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