The government of the Republic of Congo is working on an unique legal framework for startups – the Startup Act. On March 2, the Council of Ministers adopted the associated law, which was then transmitted to Parliament. Léon Juste Ibombo, Minister of Posts, Telecommunications, and the Digital Economy, had presented it for consideration. The language of the law, once adopted by the deputies, will aid in the implementation of various administrative, financial, fiscal, and other measures aimed at promoting the growth of tech entrepreneurship in the central African country.
“The lack of a specific legal framework for players in the digital industry, the lack of appropriate funding, the difficulties in accessing public procurement, and the absence of an innovation strategy justifies the proposal of an environment conducive to the development of these young companies,” Léon Juste Ibombo said.
A “startup” label is included in the statute. It will only be given to fledgling businesses that meet certain criteria.
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The government of Congo has decided to devote special attention to its start-up economy as a result of the high level of financial interest that this sector has already generated among African investors.
In 2021, African start-ups raised $5.2 billion in funding, up from $277 million in 2015, according to Partech Africa Report.
Covid-19 has increased the value of fintech, e-logistics, e-commerce, and e-health.
The Congolese government aims to allow local innovators to benefit from the rising commercial prospects as the continent’s digital transformation accelerates.
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According to Partech’s “2021 AFRICA TECH VENTURE CAPITAL” report, Congolese startups raised $1 million in 2021 from investment funds and other venture capital firms.
Senegal, which has had a startup law in place since December 28, 2019, saw the amount of money raised by its startups reach $353 million in 2021. According to Partech, it was $6.50 million in 2016.
Congo will be able to further enrich itself with tech innovators and entrepreneurs capable of supporting it in its digital transformation with local solutions fitted to its reality, thanks to an ecosystem that encourages the establishment of startups. A thriving local industry that will spur the development of jobs for the country’s youth and increase its riches.
Congo Startup Act Congo Startup Act
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