In a significant development for Senegal’s burgeoning startup ecosystem, the country has established the Evaluation, Support, and Coordination Commission for Startups (CEAC) in accordance with the Startup Act. This commission is tasked with overseeing and coordinating the labeling process for Senegalese startups, as well as formulating and executing a national strategy to promote startup innovation.
Comprising 18 members representing diverse stakeholders, including government officials, startup associations, and independent experts, the CEAC aims to bolster the startup landscape in Senegal. Its core objectives encompass fostering creativity, innovation, the adoption of cutting-edge technologies, value creation, and competitiveness, both domestically and on the international stage.
This milestone traces back to 2021 when President Macky Sall ratified the Senegalese Startup Act, solidifying its legal foundation. The Startup Act had been promulgated the previous year, following extensive deliberations within the Senegalese National Assembly.
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The Senegalese Startup Act primarily seeks to drive innovation within the country’s economy, aligning with the broader “Digital Senegal 2025” strategy. Key provisions of the Act define eligible startups and establish a dedicated National Commission for Startups, known as the CEAC.
To qualify for Startup Act benefits, a startup must be a disruptive private or public company, legally registered for no more than eight years, and possess substantial growth potential built upon a disruptive economic model. Furthermore, it must have at least one-third ownership by Senegalese nationals, residents, or legal entities operating within Senegal. The law also extends its reach to startups founded by Senegalese living abroad, provided they own at least 50% of the startup.
The CEAC is mandated to create an online platform facilitating startup registration and labeling procedures. It can also seek support from public and private sectors to aid in startup promotion and development. Additionally, the Commission has the authority to define technical standards, labeling procedures, and criteria for startups.
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Under the new law, registered startups stand to benefit from various incentives, including customs and tax advantages. Notably, the Senegalese government has approved a three-year tax exemption for startups and newly established companies, aligning with their commitment to foster a conducive environment for startup growth.
Registered startups can also access public procurement opportunities, receive funding, and gain access to specialized training and mentorship programs through the CEAC. Furthermore, they may receive support for registration costs, domain name reservation, intellectual property protection, and other vital aspects during their growth journey.
The Startup Act opens doors for labeled startups to secure both public and private funding, ensuring their financial stability. Public sector support encompasses loans, financing, and capital participation from investment companies. The Act also outlines preferential access to public procurement contracts, providing labeled startups with a competitive edge.
Importantly, the Act defines penalties for non-compliant startups, with labels subject to withdrawal if eligibility criteria are not met. Procedures for label withdrawal are established in accordance with the Commission’s technical standards.
Senegal’s Startup Act and the establishment of the CEAC mark a pivotal moment in the country’s commitment to nurturing its startup ecosystem, fostering innovation, and positioning itself as a dynamic player in the global startup landscape.
Startup Commission Senegal Startup Commission Senegal
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the con