Policy & Regulations - Afrikan Heroes

Central African Central Bank Wants to Regulate Fintech, Initiates Forum

January 30, 2024

In a significant move towards fostering financial technology (fintech) innovation and regulation, the Central African Central Bank (Banque des États de l’Afrique centrale or Beac) inaugurated the first-ever fintech forum in Douala on January 29, 2024. The forum aims to regulate fintech activities within the Economic and Monetary Community of Central Africa (CEMAC), encompassing Cameroon, Congo, Gabon, Chad, Central African Republic (RCA), and Equatorial Guinea.

Jean-Clary Otoumou, the Director-General of Operations at Beac, emphasized the need for collaboration between Beac, the Financial Markets Commission (Cosumaf), the Banking Commission (Cobac), and fintech companies. Otoumou stated, “We do not know each other well. However, we all play crucial roles in payments within the region for our populations, and our ambition is to regulate.”

Highlighting the urgency of regulating digital financial services, Otoumou underscored the industry’s rapid growth and the security risks associated with transactions in the sub-region.

To address these concerns, the central bank has developed a regional financial inclusion strategy set to be implemented this year. The strategy focuses on providing access to reliable and secure data for all stakeholders in the financial inclusion sector, promoting and facilitating innovation, and ensuring interoperability.

According to Beac’s 2022 report on payment services in the CEMAC region, over 96% of transactions (2.3 billion operations) were conducted through Mobile Money, with only 2% (48.3 million operations) utilizing traditional bank transfers and cards. The report also indicated that instant electronic currency transfers were used in 21% of transactions, totaling 23,332 billion CFA francs.

Given the substantial transaction volumes, the necessity of regulation becomes evident. However, César Zinga, founder of Mapossa, a fintech specializing in automated personal finance, expressed concerns about the practical implementation of the regulation. Zinga suggested the need for a regulatory body specifically overseeing payment institutions.

Until January 31, the central bank and fintech promoters aim to collaborate and expedite financial inclusion efforts, currently estimated at 32% in the sub-region. Jean-Clary Otoumou stated, “Our strategic objective is for 75% of the 60 million inhabitants of the CEMAC to have a bank account and an electronic instrument by 2030.” The dialogue between regulatory authorities and fintech innovators is crucial for shaping a robust and effective regulatory framework in the evolving digital financial landscape of Central Africa.

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 continent’s pioneers in this regard.

How To File Your Data Protection Compliance Audit Returns in Nigeria

January 27, 2024

In accordance with the Nigeria Data Protection Act (NDP Act) 2023, the filing of Data Protection Compliance Audit Returns (CAR) is a mandatory obligation for both data controllers and data processors, as stipulated in the Nigeria Data Protection Regulation (NDPR) 2019. This comprehensive guide aims to provide a step-by-step approach for filing these returns, promoting transparency, and ensuring accountability in the processing of personal data.

1. Reliance on NDPR for Filing of CAR

Data Controllers and Data Processors are advised to rely on Articles 4.1(5) and (7) of the NDPR to submit CAR to the Nigeria Data Protection Commission (the Commission). It is crucial to note that the NDPR remains applicable, subject to any overriding provisions of the NDP Act or regulatory instruments issued pursuant to it.

2. The Role of Data Protection Compliance Organizations (DPCOs)

a) DPCOs are instrumental in facilitating the filing of CAR with the Commission, minimizing financial constraints for Data Controllers and Data Processors. b) DPCOs may, under certain circumstances, engage in CAR work as a Corporate Social Responsibility (CSR), particularly for start-ups, non-profit organizations, and low-revenue entities, emphasizing the promotion of voluntary compliance. c) CAR serves as an opportunity for practical training of designated Data Protection Officers (DPOs) and staff members, with evidence of training earning CPD credits. d) DPCOs are responsible for disseminating this Guidance Notice to their clients or prospective clients.

3. CAR Focus Areas

a) The audit report should emphasize the following: i. Awareness ii. Capacity Building iii. Privacy Policy iv. Compliance Directives to Employees, Contractors, Agents, etc. v. Availability of Data Protection Officers vi. Categories of Personal Data being processed vii. Technical Measures for ensuring Confidentiality, Integrity, and Availability of Personal Data viii. Grievances Redress Mechanism ix. List of agents or contractors engaged for data processing and their compliance with the NDP Act.

b) For the year 2022, agents or contractors should provide details of their Technical and Organizational Measures (TOM) for data protection in the Digital TOM form provided by the Commission.

4. Compliance Memorandum

a) Data controllers or processors may outline a time-bound intention to regularize data processing activities in line with the NDP Act in a Memorandum. b) The Memorandum, signed by the designated DPO, should be submitted to the Commission as part of the CAR, with a time-bound intention not later than March 31, 2024.

5. Free Induction Training for Designated DPOs

a) Designated DPOs are required to participate in an induction training organized by the Commission in January 2024. b) The training will focus on data subjects’ rights and compliance obligations of data controllers and processors under the NDP Act and its General Application and Implementation Directive (GAID).

6. Default Fee

The deadline for filing under the NDP Act and the NDPR is March. The applicable date for the 2022 CAR under this Guidance is March 15, 2023. A default fee, amounting to 50% of the filing fee, applies if a data controller fails to file on or before the deadline.

Effect of Non-Compliance

Failure to comply with this Guidance Notice may lead to enforcement orders or sanctions under the NDP Act, including penalties or remedial fees, depending on the severity of the violation.

For detailed liabilities and enforcement procedures, refer to Sections 48 and 32 of the Nigeria Data Protection Act.

Rating Compliance Metrics in the National Data Protection Programme (NaDPAP) Whitelist

S/N	METRICS	NDP ACT SECTIONS	POINT
1	Verifiable Evidence of Conformity with Data Protection Principles and Lawful Basis. (Privacy Policies and Notices, Consent forms, Visitors Book, audio visual evidence of compliant data processing, etc may be used)	24 & 25	15
2	Accountability and Prompt Responsiveness to Regulatory Processes. (Timely filing of CAR, Resolution of Complaints, Registration and Data Subjects Access Request are focal areas)	24, 6(d), 24(3) & 61(2) (g)	15
3	Sensitization of Data Subjects on Data Subjects Rights	27 & 34-38	10
4	Appointment of A Verifiably Competent DPO	32	5
5	Engagement of a DPCO	33	5
6	Filing of Compliance Audit Returns	6(d) & 61(2)(g)	10
7	Data Privacy Impact Assessment	28	10
8	Accessible and Functional Internal Remediation Mechanism	40(8)	10
9	Globally Acceptable Information Security Certifications. Privacy by design is pivotal.	24(2) & 39	10
10	Continuous Awareness / Capacity Building Programme for Staff, Contractors, Licensees, etc (This in furtherance of the overall objectives of the Act	1	10
TOTAL			100

Clarification on NaDPAP Whitelist: A Tool for Accountability

The NaDPAP Whitelist serves as a vital instrument for accountability, distinguishing itself from an immunity list or a shield against data subject complaints.

Not an Immunity List or Shield: The Whitelist should not be misconstrued as conferring immunity or acting as a shield against data subject complaints.
Functional Data Repository: It functions as a comprehensive repository of data controllers and processors, providing a clear overview of entities involved in data processing activities.
Rebuttable Presumption of Commitment: Inclusion in the Whitelist creates a rebuttable presumption. It is understood that a data controller or processor on the list is committed to implementing robust technical and organizational measures to safeguard the rights of data subjects.

All enquires about filing data audit returns in Nigeria should be forwarded to info@progressionlawfirm.com.

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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 continent’s pioneers in this regard.

Tunisia Awards 14 New Startup Labels in December 2023, Total Reaches 988

January 17, 2024

In a ceremony held yesterday, Tunisia’s Ministry of Communication Technologies celebrated the issuance of 14 new labels to startups, marking a significant stride in the country’s commitment to fostering innovation and entrepreneurship. The event, overseen by the Minister of Communication Technologies, Nizar Ben Neji, also highlighted the accomplishments of two notable entrepreneurs, Rym Ben Dhief Akremi and Rym Bedoui Ayari.

According to an official statement released during the ceremony, these 14 labels were part of the December 2023 session, bringing the total number of labels granted in 2023 to 34. The same source revealed that an additional 20 labels had been awarded in the preceding months of October and November. The overall tally for labels awarded to Tunisian startups now stands at an impressive 988.

Among the distinguished recipients is Rym Ben Dhief Akremi, the former CEO of Topnet, who, after accumulating 27 years of professional experience, has ventured into entrepreneurship with the RSE Time project, securing the coveted startup Act label. Another notable awardee is Rym Bedoui Ayari, the CEO of WeFranchiz.

This recent achievement builds upon the foundation laid by Tunisia’s startup support project, initiated in 2018 with the implementation of the startup law. The legal framework, established through government decree no. 840 of 2018 on October 11, outlined the conditions, procedures, and deadlines for the awarding and withdrawal of startup labels. It also delineated the benefits associated with the startup designation and established the organization, prerogatives, and operational methods of the startup label award commission.

The Ministry of Communication Technologies had previously reported in 2022 that the cumulative number of labels granted reached 773 since the inception of the support project for startups and innovative SMEs. The startup law, enacted in April 2018, has played a pivotal role in providing a conducive legal environment for the management of innovative projects, enabling numerous young entrepreneurs to bring their innovative ideas to fruition.

With this latest round of label allocations, Tunisia continues to showcase its dedication to nurturing a thriving startup ecosystem, providing crucial support to those driving innovation and economic growth in the country. The success stories of Rym Ben Dhief Akremi and Rym Bedoui Ayari stand as testimony to the tangible impact of these initiatives on the entrepreneurial landscape of Tunisia.

label startups Tunisia label startups Tunisia

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 continent’s pioneers in this regard.

Fintech Startups in Tunisia Now Need Approval from Central Bank of Tunisia to Partner with Local Banks

January 16, 2024

The Central Bank of Tunisia (BCT) has issued a note, addressed to banks, the National Post Office, and payment institutions regarding the exercise of the payment facilitator activity. Additionally, the Bank urges financial institutions to take specific measures. They are required to submit, two months before the operationalization of any partnership project with a payment facilitator, a request accompanied by contractual documents and a project description.

In reality, the guiding principles to be respected include governance, financial stability, management of the “Acquirer/payment facilitator” and “payment facilitator/sub-merchant” relationships, risk management, data protection, compliance with anti-terrorism financing and money laundering, reporting to sub-merchants, guarantee mechanisms, security, economic model, claims management, and quarterly reporting to the BCT.

It is essential that the payment facilitator activity does not compromise areas within the banking monopoly. The BCT also recommends that the payment facilitator avoids any ambiguity about the nature of its activity, particularly through advertising campaigns. At the same time, it actively encourages the development of digital payments through partnerships with local Fintechs, aiming to promote financial inclusion for small traders and artisans through innovative and economically accessible technological solutions.

Fintech partner banks Tunisia Fintech partner banks Tunisia

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 continent’s pioneers in this regard.

Central Bank of Nigeria Lifts Ban on Crypto Transactions Through Banks

December 22, 2023

In a significant policy shift, the Central Bank of Nigeria (CBN) has announced the lifting of the ban on cryptocurrency transactions carried out through banks. The decision was communicated through a circular titled “GUIDELINES ON OPERATIONS OF BANK ACCOUNTS FOR VIRTUAL ASSETS SERVICE PROVIDERS (VASPs),” issued to all banks and financial institutions.

The CBN had initially imposed a ban in February 2021, citing concerns about money laundering, terrorism financing, and the lack of regulatory frameworks for virtual assets. However, recognizing the global trend towards regulating virtual asset service providers (VASPs), including cryptocurrencies, the CBN has revisited its stance.

The circular outlines that the Financial Action Task Force (FATF) emphasized the need for VASPs regulation to prevent the misuse of virtual assets for illicit activities. Moreover, recent legislative developments, such as Section 30 of the Money Laundering (Prevention and Prohibition) Act, 2022, and rules issued by the Securities and Exchange Commission (SEC) in May 2022, have acknowledged and provided a regulatory framework for VASPs in Nigeria.

The new guidelines supersede previous circulars from 2017 and 2021, but it reiterates that banks and financial institutions remain prohibited from holding, trading, or transacting in virtual currencies on their own account. Financial institutions are now mandated to comply immediately with the provisions of the new guidelines.

Crypto bank Nigeria — *Yemi Cardoso is Nigeria’s new Central Bank Governor.*

This announcement marks a departure from the CBN’s earlier stance when, in 2021, it issued directives instructing all commercial banks and financial institutions to close down bank accounts associated with cryptocurrencies. The ban was a response to perceived risks and vulnerabilities associated with cryptocurrency transactions, as expressed in a letter signed by Bello Hassan, Director of Banking Supervision, and Musa I. Jimoh, Director of Payment Systems Management Department.

In a related development in 2020, Nigeria’s Securities and Exchange Commission (SEC) declared that all virtual crypto assets issued in Nigeria are securities, unless proven otherwise. The SEC mandated the registration of individuals or entities providing blockchain-related and virtual digital asset services, broadening the scope to include advising on cryptocurrencies and rendering custodian or nominee services.

The regulations also specified a three-month window for Digital Assets Token Offerings (DATOs), Initial Coin Offerings (ICOs), and Security Token ICOs to submit necessary documents for registration. Additionally, the SEC outlined the process of registration and possible exemptions for offerings through crowdfunding portals or other exempt methods.

Crypto bank Nigeria Crypto bank Nigeria

What Does The New Crypto Regulation In Nigeria Mean For Crypto Traders?

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 continent’s pioneers in this regard.

Delaware Flip Dealt A Heavy Blow Under New Company Rules in Nigeria

December 7, 2023

In a significant development, Nigeria’s Corporate Affairs Commission has imposed stringent regulations, making it considerably challenging for companies incorporated in foreign countries to establish subsidiaries in Nigeria. The new rules dictate that any application for the incorporation of a company with foreign participation must comply with a minimum paid-up capital requirement of N100,000,000 (approximately $126,355.23 USD), as outlined in the Revised Handbook on Expatriate Quota Administration (2022).

According to the commission, existing companies with foreign participation that fall short of the N100,000,000 paid-up capital requirement are given a six-month grace period to align with this new directive. Failure to comply within this timeframe may result in the initiation of compulsory winding-up proceedings under Section 571 (e) of the Companies and Allied Matters Act 2020.

A significant casualty of these stringent measures is the widely adopted strategy of cross-border incorporation flipping by Nigerian startups. This maneuver, often employed to meet investor requirements and facilitate seamless operations, involves the creation of a new foreign holding company. This holding company then acquires all shares in the existing Nigerian entity, establishing a legal link between the two.

For instance, the Delaware flip, a commonly used approach, involves creating a new US holding company, typically in Delaware, to hold all shares in an existing Nigerian company. The Delaware entity then becomes the majority shareholder in the Nigerian company, establishing a legal link between the two entities.

Charles Rapulu Udoh, a tech startup lawyer based in Lagos, expressed concern about the implications for Nigerian startups. “This is going to hit Nigerian startups the most,” he remarked. “It used to be a minimum authorized capital of N10 million, but the new rules have increased this to N100,000,000 paid-up capital. This will significantly impact the cost of registering new startups with foreign participation, translating to thousands of dollars in incorporation costs. We are anticipating more than a 10% increase in the cost of registration. Again, this is a case of paid-up capital (as against authorized capital), meaning there should be evidence of liquidity of approximately $127,000 in Nigeria in favor of the Nigerian entity.”

This development comes at a time when Nigeria recently passed a Startup Act aimed at enhancing the ease of doing business for startups. The new regulations, however, appear to run counter to the spirit of this legislation, posing challenges for entrepreneurs and potentially hindering the growth of the startup ecosystem in the country.

Delaware flip Nigeria Delaware flip Nigeria

Nigeria’s Patricia Relocates To Estonia. Here’s What It Means To Headquarter An African Startup Abroad

Ivory Coast Set to Overtake Africa’s Leading Startup Nations with Approved Startup Act

November 21, 2023

The stage is set for startups in Ivory Coast to embark on a new phase. They are joining their counterparts in Tunisia, Senegal, Algeria, Congo, and Nigeria, who have recently secured legislation specific to their needs, more commonly referred to as the Startup Act. After years of campaigning, deliberation, and consultation, the country’s Senate’s Commission on Research, Science, Technology, and the Environment has unanimously decided, greenlighting the Startup Bill aimed at propelling the growth of digital startups. This landmark move, sealed on Tuesday, November 14, underscores the government’s dedication to nurturing the development and resilience of these innovative enterprises.

Ibrahim Khalil Konaté, the Minister of Digital Transition and Digitalization

Presenting the proposal to the upper echelons of the Ivorian parliament, a government envoy elucidated the bill’s overarching goal: to shepherd digital startups from their vulnerable inception to full maturity. The ultimate aspiration is to amplify their impact on reshaping the national economy and elevating the overall quality of life for citizens.

What Does the Bill Say?

Central to the legislation is a commitment to fostering innovation and providing vital support for digital startups in their nascent or burgeoning stages. This entails crafting a bespoke legal framework for the registration and accreditation of Ivorian digital startups. The bill also delineates a roadmap for supporting and aiding accredited startups, empowering them to play a pivotal role in the national economic landscape.

Ibrahim Khalil Konaté, the Minister of Digital Transition and Digitalization, struck an optimistic note regarding the proposed legal framework. He underscored the distinctive economic model of digital startups, still in its formative phase, and the associated challenges in defining market components and ensuring immediate profitability. Konaté highlighted the inherent uncertainties and risks faced by these ventures as they navigate uncharted territories.

What Difference Would it Make in Ivory Coast?

Although the West African country has not been receiving adequate attention from investors targeting the African startup ecosystem — the country received a meager $33 million (12th in Africa) in 2022 — all that seems set to change. This is so because of the current effects of similar legislations in Algeria, Tunisia, Senegal. Thanks to the positive image promoted by the legislations, these countries have witnessed significant improvements in funding accruing to startups — $150 million, $117 million, and $105 million respectively — , ranking just behind the continent’s top five: Nigeria, South Africa, Egypt, Kenya, and Ghana.

With a population of 27.48 million and the highest per capita income in West Africa ($2,486) — beating Nigeria, Ghana, and Senegal — the country seems set to make memorable marks on the continent’s startup ecosystem.

For the parliamentary group Rhdp, this legislative milestone, grounded in a consultative and inclusive approach, heralds the creation of a tailored incentive framework for the establishment and promotion of digital startups in Ivory Coast.

“Beyond these advantages, this bill will establish a specific support and governance framework for Ivorian digital startups, with the primary objective of accelerating socio-economic growth,” a spokesperson Rhdp says, noting that this will finally afford these startups the tailored support they need., lauding this innovative approach.

While this forward-looking initiative holds promising prospects, the Rhdp parliamentary group stresses the importance of heeding relevant and effective recommendations to stimulate innovation, economic growth, and competitiveness.

The final step for the bill to come into full effect is for the country’s president to grant his final approval.

Startup Act Ivory Coast Startup Act Ivory Coast

After a Major Exit in 2021, Investors Plot a Comeback in Morocco’s Cash Plus

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 continent’s pioneers in this regard

Startup Scene in Algeria Set to Soar with New Crowdfunding Rules: Here’s What It Says

October 31, 2023

Algeria recently unveiled a comprehensive set of regulations for crowdfunding, marking a significant milestone in the country’s burgeoning startup ecosystem. These new regulations are poised to enable startups to raise substantial capital, with some key provisions and requirements for both commercial companies and participatory investment advisors.

Headquarters in Algeria: Commercial companies looking to utilize crowdfunding must maintain their headquarters in Algeria.
Director Criteria: They should ensure that all their directors meet the integrity and qualification criteria specified by the commission for directors of IOBs (commercial companies).
Activity Manager: Appoint an activity manager with a higher education degree in economic or financial fields, who has successfully completed specialized training provided by an accredited organization in collaboration with the commission.
IT Resources: Possess the necessary material and IT resources.
Operational Procedures: Establish operational procedures that ensure traceability of transactions, identification, and management of conflicts of interest, and the detection of money laundering and terrorist financing activities.
Internal Control System: Implement an internal control and compliance system tailored to their business volume.

Participatory Investment Advisors:

Shariah Conformity: Advisors seeking to establish a platform exclusively dedicated to Islamic participatory financing must obtain a Shariah conformity certificate from the national Shariah authority for Islamic finance.
Advisory Services Authorization: IOBs interested in obtaining the status of Crowdfunding Investment Platform (CIP) must first receive authorization to engage in advisory services for transferable securities placement and placement of transferable securities and financial products.
Qualified Individual: IOBs and SGFIs intending to engage in CIP activities must designate a qualified individual responsible for the activity who meets the criteria specified in the regulations.
Insurance Requirement: CIPs are required to maintain professional liability insurance covering all risks associated with their activities.
Application Process: Approval applications for CIP status must be submitted to the commission, accompanied by specified documents. The commission reviews these applications within one month, with additional information requests pausing the timeline.
Non-Transferable Approval: CIP approval is non-transferable and issued to specific individuals.

Suspension and Withdrawal of Approval:

The commission can suspend or withdraw approval under certain circumstances, including non-compliance with approval conditions or actions that may harm participant interests.

CIP Requirements:

CIPs must adhere to specific rules, including proposing projects with a total amount not exceeding 20 million Dinar (USD147,000) for a twelve-month period, conducting suitability tests on participants, offering multiple projects that meet common investment criteria, and publishing relevant information about projects.

Crowdfunding Projects:

Participatory investment projects are exempt from submitting an information notice to the commission. Instead, the CIP must publish an information document on the platform for each project, including project details and specific requirements set by the commission.

Due Diligence:

CIPs must establish a due diligence system to select viable participatory investment projects. Participant files must be maintained for a minimum of five years, with the protection and confidentiality of personal data being paramount.

Subscription and Fundraising:

CIPs are responsible for providing investment advice and collecting subscription forms for projects. They must establish dedicated current accounts for each project.

Reimbursement and Remuneration:

CIPs must reimburse participants if a project or project stage is not fully subscribed within the prescribed timeframe. Remuneration is based on various factors, including services provided to project leaders and subscriptions for securities.

Control and Reporting:

The CIP is subject to control by the commission, which may conduct investigations and request financial statements and other information for monitoring activities.

These regulations aim to create a conducive environment for crowdfunding in Algeria, empowering startups to access much-needed capital while ensuring the integrity and security of the crowdfunding process. Published in the Official Journal of Algeria, these regulations mark a significant step forward for the country’s entrepreneurial ecosystem.

Cavex Gains $6M Funding Boost from E3 Capital for Carbon Initiatives in Africa

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 continent’s pioneers in this regard

Inside Egypt: The Foreign Currency Debit Card Payments Ban and How Startups are Coping

October 13, 2023

Mr Tarek Amer, governor Central Bank of Egypt

In a surprising turn of events, several Egyptian banks have sent notifications to their customers, announcing the cessation of direct debit card transactions in foreign currencies. This unexpected decision has raised concerns among a diverse array of businesses, from established corporations to emerging startups, that operate within the country. The primary motivation behind this move is to combat the illegal smuggling of foreign currencies out of Egypt. However, this measure has inadvertently posed significant challenges for companies that rely on international transactions.

Numerous businesses in Egypt, especially those in the technology sector, now find themselves grappling with a complex situation. They have forged partnerships with international tech giants that necessitate payments in foreign currencies. Until recently, these transactions were effortlessly facilitated through direct debit cards. In light of this recent policy change, these businesses are urgently searching for alternative methods to conduct their financial operations.

The decision by the Central Bank of Egypt to suspend direct debit card transactions in foreign currencies can be primarily attributed to the nation’s dwindling reserves of hard currency. The central bank’s objective is to safeguard these reserves for critical import operations and reduce losses incurred due to illicit currency activities. There is speculation among experts that exceptions could potentially be made for companies that can convincingly demonstrate the legitimacy of their business activities and maintain dollar accounts.

Prominent Egyptian industry experts, whose insights were sought regarding these developments, have emphasized the profound implications of this decision, particularly for startups and technology companies that rely extensively on foreign technology services. These businesses predominantly engage in foreign currency transactions and contribute significantly to Egypt’s hard currency income. In the wake of this decision, some of these companies are considering the establishment of offshore dollar accounts or even contemplating moving their operations overseas, actions that could potentially influence Egypt’s economy.

The companies most severely affected by this decision encompass startups, online retailers, software development firms, and e-marketing companies. These enterprises heavily depend on foreign currency to carry out their trade and marketing activities. Should this policy persist, some of these businesses might even contemplate withdrawing from the Egyptian market. While a few startups are currently exploring temporary solutions, such as using foreign accounts held by relatives or acquaintances, these stopgaps are by no means sustainable in the long term.

Wael Nofal, the CEO of BlinkUp, a company specializing in phone applications, is among those who received these notifications and expressed his astonishment at the sudden disruption. BlinkUp relies on collaborations with international tech giants like Microsoft, Amazon, and Google to deliver advanced services to the public. This partnership requires payments in foreign currencies, traditionally processed through direct debit cards. Nofal is now compelled to explore alternative avenues, including involving an overseas investor to manage commercial transactions until the company can potentially establish itself outside of Egypt.

Egypt’s recent decision to halt direct debit card transactions in foreign currencies has cast a cloud of uncertainty and challenges over both established companies and burgeoning startups. While the move’s intention is to safeguard the nation’s foreign currency reserves, it inadvertently poses a threat to the survival of businesses reliant on international transactions. The hope now lies in policymakers reevaluating this decision and working towards solutions that ensure the continued growth of these companies, as well as the prosperity of the Egyptian economy.

Card ban Egypt Card ban Egypt

South African Startup Cue Raises $500K to Scale Its AI-Driven Customer Service Solutions

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

Ethiopia Opens Doors to Non-Banks and Investment Platforms in Mobile Money Sector in Latest Reforms

October 12, 2023

In a notable stride toward modernizing its financial landscape, the National Bank of Ethiopia (NBE) has unveiled a series of revised directives that are set to foster both security and innovation within the mobile money service sector. These reforms signal a pivotal moment in the nation’s ongoing pursuit of a dynamic and resilient financial ecosystem. The newly unveiled Payment Instrument Issuer Directive, introduced recently, stands as a testament to Ethiopia’s commitment to nurturing a competitive and innovative environment. By aligning these developments with the broader mission of the National Bank, this report delves into the intricacies of these regulatory changes, providing a comprehensive understanding of the transformation that is underway in Ethiopia’s mobile money landscape.

Transaction Limits and Exemptions:

The NBE has raised the daily electronic account balance limit from Birr 30,000 to Birr 75,000 ($540 to $1300). This change offers greater flexibility for users, allowing them to store more money in their mobile money accounts.

Notably, certain transaction types, such as utility payments, tax payments, airline ticket purchases, fuel payments, and bulk payments, are exempt from these limits. This facilitates essential financial transactions without constraints.

Inclusion of Non-Banks:

One of the most groundbreaking changes is the inclusion of non-bank entities in the mobile money sector. This marks a shift away from traditional banking dominance and introduces competition, innovation, and diversity in service providers.

Investment in Securities:

Mobile money platforms are now authorized to facilitate users’ investments in government and private securities electronically. They can also handle payments related to these investments, including principal, interest, dividends, and returns. This expansion opens doors for fintech entrepreneurs to offer investment-related services.

Future Investment Features:

The directive hints at the potential for mobile money platforms to offer more advanced investment features in the future. This could mean the ability for users to invest in assets like bonds or stocks via their mobile money accounts.

Financial Inclusion and Economic Growth:

The overarching goal of these changes is to create a stable financial system that ensures every citizen has access to a diverse range of financial services. This not only fosters economic growth but also improves living standards for Ethiopians.

Detailed Requirements for Foreign Providers:

The revised directive includes specific and detailed requirements for foreign mobile money service providers who intend to enter the Ethiopian market. This ensures that foreign providers comply with local regulations and standards.

Securities Exchange Preparation:

Ethiopia is gearing up to establish its first-ever securities exchange, with several state-owned enterprises designated as founding members. For fintech entrepreneurs, this development presents potential collaboration opportunities and a growing ecosystem for financial services.

Ethiopia mobile money platforms Ethiopia mobile money platforms

South Africa’s TymeBank Reaches 8 Million Customer Milestone in Just Four Years

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