The Tunis Stock Exchange has finalized plans to create a digital trading exchange intended to finance labeled startups.
This project, which will be carried out with the support of the German International Cooperation Agency (GIZ), is part of the Startup Act, which constitutes a legal framework dedicated to Startups and supported by the Tunisian Government, affirms the Managing Director of Securities Exchange (BVMT), Bilel Sahnoun.
“Through this project, the BVMT seeks to contribute to the development of Startups’ activities and their integration into the country’s economic fabric by providing them with solutions to the financing problem in order to help them consolidate their predisposition to create added value. and increase their employment capacity, ”Sahnoun said.
Here Is What You Need To Know
- In a statement to the Tunisian Press Agency, Sahnoun explained that this project, the reflection of which was initiated in early 2020, will use new Blockchain technology.
- He also explained that the digital stock market will be carried out in four sequential steps. It is about the execution of the action plan of this project which began with the realization of an operational benchmark, the second stage will relate to workshops with the actors, the operators and the interveners concerned by this project and the ‘’ identification of the needs necessary for the success of the latter (project).
“The overall cost of the project and the related details will be finalized and calibrated during this stage,” he explained.
- The third step concerns the launch of the terms of reference of the project, while the fourth will relate to the deployment of the Digital Exchange project and its implementation.
- The objective sought is to guarantee the success of this project, which should constitute a benchmark by targeting a population of innovative issuers, underlines Sahnoun, adding that “the digital stock market is intended for informed investors who seek profitability in the diversification of risks. using innovative technology ”.
- According to the official, the Tunis Stock Exchange also wants to bring innovation and consolidate its role in the Tunisian financial system and in the economy of the country in general.
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- For Sahnoun, the startup’s stock market listing can also be the best medium for advertising and communication at the local and even international level.
“The scholarship reflects the success of the startup’s Business Model and support for carrying out the second or third fundraising necessary to support its development,” said the manager.
- It is also a question of maximizing the value of the sale of some or all of the stakes of the initial investors in the startup in a transparent and regulated market, he added.
- According to the annual report of the Startup Act in Tunisia 2019- / 2020, the labeled startups, whose number has reached 248, generated a cumulative turnover, in 2019, of 66 million dinars, of which 72% is made on the Tunisian market. All of the 248 labeled startups employ 2,829 people (April 2020), including founders, with an average of 11 people per startup.
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