Running a startup in Africa comes with a lot uncertainties especially as regards the regulatory environment. This is perhaps why most African entrepreneurs opt to form offshore corporations in order to strengthen not only their legal identities but also to protect the interests of investors. The Startup Act concept in Africa, which Tunisia pioneered, is once again helpful in assuaging the anxieties of both founders and investors.
A list of some of the Startup Acts (and associated download paths) that are already in place in several African countries is provided below.
Algeria
Under the Algerian Startup Act, the “Start-up” label is granted to the company for a period of four (4) years, renewable once (1), in the same forms.
Learn more by downloading the entire document.
Download here: https://afrikanheroes.gumroad.com/l/algerianstartupact
Ghana
Under Ghana’s proposed Startup Bill, 20% of public procurement contracts must be reserved for Start-ups and SMEs.
Learn more by downloading the entire document.
Download here: https://afrikanheroes.gumroad.com/l/startupactghana
Nigeria
Under the proposed Nigerian Startup Bill, a Startup Label shall be valid for a period of 10 years from the date of issuance.
Learn more by downloading the entire document.
Download here: https://afrikanheroes.gumroad.com/l/startupactnigeria
Ethiopia
Under the Ethiopian Startup Bill, Startups shall be entitled to the incentives provided in this Proclamation for a period of up to five years.
Learn more by downloading the entire document.
Download here: https://afrikanheroes.gumroad.com/l/startupactethiopia
Tunisia
Under the Tunisian Startup Act, any promoter of a Startup, whether a public official or a private company employee, can take advantage of the right to leave for the purpose of starting a business for a term of one year, renewable only once. This entitlement is available to a maximum of three (3) founder-shareholders who work full-time in the Startup in question.
Learn more by downloading the entire document.
Download here: https://afrikanheroes.gumroad.com/l/startupacttunisia
Senegal
The Senegalese Startup Act also applies to any startup created by any Senegalese living abroad who owns at least 50% of the startup.
Learn more by downloading the entire document.
Download here: https://afrikanheroes.gumroad.com/l/startupactsenegal
Kenya
One significant thing achieved by the Kenyan Startup Bill is to shut out startups owned by established corporates. Hence, under the new law, any startup business unit (whether a subsidiary or not) owned by any established company which is not itself a startup, will not be considered a startup.
Learn more by downloading the entire document.
Download here: https://afrikanheroes.gumroad.com/l/startupactkenya
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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