Policy & Regulations - Afrikan Heroes

What to Expect: Eight Features of the Upcoming Startup Silver License in Egypt

October 6, 2023

In the heart of Egypt’s startup ecosystem, a remarkable transformation is underway — a transformation driven by the introduction of the “Silver License” by Egypt’s Investment and Free Zones Authority. This development promises to redefine the startup landscape in the country.

The Silver License is a streamlined licensing initiative designed to simplify the establishment of startups and provide them with a host of benefits and incentives. It addresses the challenges faced by emerging companies, particularly in terms of bureaucracy and costs.

Key features of the Silver License include:

Streamlined Licensing Procedures: The Silver License aims to simplify and expedite the process of obtaining licenses for startup companies. This streamlined approach will significantly reduce the time and effort required to establish a business officially.

Incentives for Startups: Startups granted the Silver License will benefit from various incentives. These incentives include the removal of penalties that often burden emerging companies, making it more attractive for entrepreneurs to start their businesses in Egypt.

Enhanced Investment Climate: The Silver License is expected to have a positive impact on the investment climate in Egypt. By reducing bureaucracy and offering incentives, it is likely to encourage more investments in the country’s startup ecosystem, revitalizing the sector.

Focus on Strategic Activities: The Investment and Free Zones Authority will determine specific activities that startups should focus on, particularly those that contribute to covering the state’s needs and provide dollar liquidity. This strategic focus aims to align startups with the nation’s economic priorities.

Support for Manufacturing Companies: Manufacturing companies, in particular, are highlighted as potential beneficiaries of the Silver License. They may receive higher benefits or even a “golden license,” further incentivizing their operations.

Professional Support Teams: To ensure the success of the Silver License initiative, there is an emphasis on appointing professional teams capable of motivating startup companies and swiftly addressing any obstacles they encounter. This approach aims to provide comprehensive support to emerging businesses.

Reduced Tax and Insurance Rates: The story mentions a potential reduction in tax and insurance rates for workers. Lowering these costs can ease the financial burden on startups and make it more affordable for them to operate.

Encouraging Local Operations: The Silver License aims to encourage Egyptian founders of startup companies to establish and operate their businesses within the country, rather than opting to set up abroad before opening branches in Egypt.

Silver License Startup Egypt Silver License Startup Egypt

Senegal’s Data-Driven Startup Lengo AI Attracts Investors for African Retail Revolution

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

Navigating the New Crowdfunding Regulations in Morocco: Your Guide to Raising up to $480K

September 29, 2023

The crowdfunding landscape in Morocco is undergoing a transformation with the introduction of a comprehensive legal framework. Designed to facilitate fundraising for startups and small businesses, these regulations cover donation, loan, and investment-based crowdfunding activities. In this guide, we’ll break down the essential aspects of Morocco’s crowdfunding regulations, making it easier for you to navigate this exciting new opportunity.

Section 1: The Regulatory Landscape

Morocco’s regulatory authorities, BAM (Bank Al-Maghrib) and AMMC (Autorité Marocaine du Marché des Capitaux), have just issued a set of circulars to govern crowdfunding activities. These regulations aim to nurture crowdfunding as a financing avenue for small-scale projects, SMEs, and individual entrepreneurs.

1.1 Crowdfunding Categories and Authorized Caps

Donation: You can raise funds for your project through donations, with an authorized cap of up to MAD 450,000 (43,615.22 USD). This category is ideal for projects that rely on community support and goodwill.

Loan: If you prefer a lending model, you can raise up to MAD 3 million (290,768.11 USD) through loans from the public. This option suits businesses looking for debt-based financing without traditional banks.

Investment: For those seeking equity investment, crowdfunding allows you to raise up to MAD 5 million (484,613.52 USD) from individual investors. This can be a game-changer for startups seeking equity capital.

Section 2: The Approval Process

To start your crowdfunding journey in Morocco, you’ll need to apply for approval from BAM and AMMC. Here’s what you need:

2.1 Approval Application Dossier

Founder’s Identity and Company Details: Provide comprehensive information about yourself as the founder and details about your company, including its purpose and address.

Share Capital Information: Detail the composition and distribution of your company’s share capital among different shareholders, with identification for each.

Strategic Objectives and Market Research: Showcase your company’s strategic objectives and share insights from market research. This helps demonstrate your business’s viability.

Five-Year Business Plan: Present a five-year business plan outlining pricing policies and growth strategies, providing a clear roadmap for your project’s success.

Anti-Money Laundering and Counter-Terrorism Financing Measures: Implement systems to combat money laundering and terrorism financing while safeguarding your project’s integrity.

Data Protection Measures: Ensure the protection of personal data in line with regulatory requirements.

Project Selection and Monitoring Policies: Outline your company’s policies for selecting projects, monitoring their progress, and prioritizing contributor interests.

Section 3: Contracts and Agreements

Before commencing fundraising, several contracts and agreements need to be in place:

3.1 Service Agreement with Depositary Institution

Account Opening Agreement with Domiciliary Bank: Open an account for the Specialized Financing Company (SFC) with a domiciliary bank, adhering to specified clauses.

Financial Rights and Obligations: Define financial rights and obligations for all parties involved.

Professional Confidentiality: Ensure that the institution maintains professional confidentiality.

Fund Return Modalities: Establish clear modalities for returning funds to contributors, especially in cases where fundraising goals aren’t met.

Dispute Resolution Principles: Lay out principles for resolving disputes amicably.

3.2 Contracts with Project Holders

Loan, Donation, or Investment Category Contracts: Depending on your chosen crowdfunding category, create contracts with project holders that include project details, financing amounts, and contributor contributions.

Declaration of Acceptance: Include a declaration by all parties acknowledging the platform’s regulations and specific financing conditions.

Risk Disclosure: Clearly communicate the risks associated with non-guaranteed financing, emphasizing potential capital loss, project failure, and lack of liquidity.

Section 4: Information Disclosure

Transparency is key in crowdfunding:

4.1 Information for Project Contributors

Regular Updates: Provide regular updates on the project’s status, including the total contributions collected, remaining amounts needed, retractions, and key dates.

Post-Fundraising Information: After the fundraising period ends, share details about progress compared to forecasts, fund utilization, and projected activity for the next 12 months. Additionally, disclose revenue, expenses, and profitability achieved.

4.2 Mandatory Reports to BAM and AMMC

Annual Activity Report: Submit an annual activity report along with internal or external audit reports and financial statements.

Compliance Reports: Report on checks conducted and actions taken to ensure ethical compliance.

Technical Incident Reports: Notify authorities of any technical incidents related to your crowdfunding operations.

Any Other Relevant Information: Share any additional information related to your company’s organization and operation as per regulatory requirements.

Section 5: Looking Ahead

With the regulatory framework in place, the approval process is set to begin, particularly for donation-based platforms. Entrepreneurs who lack access to traditional banking or government support programs should explore crowdfunding as an option. However, the long-term success of crowdfunding in Morocco remains uncertain and will depend on various factors.

Morocco’s new crowdfunding regulations offer exciting prospects for startup founders and entrepreneurs. By understanding the legal framework, approval process, contracts, and information disclosure requirements, you can make informed decisions and harness the potential of crowdfunding to raise up to $480K for your projects. As the industry evolves, it’s essential to stay informed and adapt to the changing crowdfunding landscape in Morocco. Embrace this opportunity, and your startup could thrive in this innovative financing ecosystem.

Safaricom Launches Advanced Cloud Services for Businesses

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

Nigerian Fintech Startups Eager to Secure Microfinance License Can Now Apply Online — Here’s How

September 21, 2023

In a significant development, the Central Bank of Nigeria has launched an innovative online platform for the streamlined submission of Microfinance Bank (MFB) license applications. Termed the “CBN Licensing, Approval and Other Requests Portal,” this digital platform marks a pivotal shift from the traditional manual application process previously employed by prospective MFB license applicants when submitting their requests to the CBN.

The revelation of this transformational digital portal came through an official statement, endorsed by the Director of Corporate Communications, Isa AbdulMumin, and is readily accessible on the apex bank’s official website.

The online application system promises an array of advantages, including a simplified application procedure, time-saving efficiencies, improved communication channels, and robust security measures. By embracing digitalization, the Central Bank aims to enhance accessibility, reduce cumbersome paperwork, and expedite license approvals, ultimately benefiting both applicants and the broader economy.

Effective from September 25, 2023, prospective MFB license applicants are mandated to submit applications via both hardcopy and the online platform (CBN LARP) concurrently. Notably, the cover letter accompanying the hardcopy application must reference a valid application submission via the online portal to be deemed acceptable.

Starting September 25, 2023, aspiring MFB applicants are encouraged to visit www.larp.cbn.gov.ng to initiate the submission of their respective MFB license applications. The CBN LARP provides comprehensive support and guidance for users navigating the new platform, with a downloadable user guide available on the portal for further assistance.

However, it’s essential to note that the Central Bank will continue to accept manual applications for all other license categories until further notice.

Under the CBN’s revised regulations:

Fintech startups in Nigeria can obtain a singular Payment Solution Services License for ₦250 million. This comprehensive license permits startups to engage in agency banking (Super Agent License), own POS terminals (Payment Terminal Service License), or possess a payment processing portal (Payment Solutions Service License). Alternatively, if a fintech startup lacks the necessary funds (₦250 million) for the comprehensive license, they can opt for any of the three licenses (Super-Agent, PTSS, PSSs) individually.

Licensed mobile money fintech startups in Nigeria, which can hold customer funds, are treated as banks. Therefore, if a startup wishes to combine a mobile money banking license with other license types, it must establish a “non-operating” holding company. This holding company will manage these additional licenses, including a mobile money license, under a subsidiary framework.

Startups operating under a holding company structure can simultaneously acquire all license types, provided they maintain the minimum authorized capital requirements for each license and obtain a no-objection letter from the CBN’s Payments System Management Department, established in 2018.

It’s important to note that while the Regulatory Sandbox Category appears promising for startups without substantial funding, the CBN has yet to clarify the specific criteria for licensing fintech startups in this category.

Notably, fintech startups in Nigeria have predominantly favored microfinance licenses over other categories. However, the new categorization rules are particularly relevant to startups focusing on mobile money services, switching, card processing, and agency banking.

To know more about the procedure for the new license categories, download CBN’s latest application guidance here (.pdf)

microfinance finance license Nigeria microfinance finance license Nigeria

Central Bank of Nigeria Toughens Rules For Fintech Startups Looking For Licenses

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

Ambitious Leap into the Startup Arena: Unpacking the Proposed New Startup Act in Mauritania

September 14, 2023

In a landmark development, Mauritania unveiled its long-awaited Startup Act on Thursday, September 7, 2023, during a meeting of the Council of Ministers. This legislative initiative marks the realization of one of President Mohamed Ould Cheikh El Ghazouani’s key commitments, aiming to harness innovation as the driving force behind digital development, entrepreneurship, and corporate competitiveness.

The presentation of the Startup Act was delivered by the Minister of Digital Transformation, Innovation, and Administrative Modernization, Mohamed Abdellahi Ould Louly. This presentation provided the Council of Ministers with a comprehensive understanding of the law’s objectives, its developmental journey, and the anticipated impact it will have on Mauritania’s innovative entrepreneurial ecosystem.

Minister of Digital Transformation, Innovation Mohamed Abdellahi Ould Louly

The “Startup ACT Mauritania” bill is a legal framework meticulously designed to streamline the launch and growth of innovative startups and high-value-added SMEs in Mauritania. Furthermore, the development of the Startup ACT aligns with the government’s overarching goal of fostering an ecosystem conducive to the emergence of startups.

At its core, this legislation aims to nurture and champion startups in Mauritania that thrive on creativity, innovation, the utilization of cutting-edge technologies, the creation of significant value, and national and international competitiveness.

To achieve these objectives, the Startup ACT incorporates a set of structured measures, including a merit-based recognition system and incentives for various stakeholders within the digital entrepreneurship and innovation ecosystem, encompassing entrepreneurs, startups, support structures, and investors.

Similar initiatives have been successfully implemented in several African countries, including Senegal, Tunisia, Nigeria, Algeria, and the Democratic Republic of the Congo, resulting in significant economic development.

This legislation encompasses various provisions, such as the criteria for obtaining startup and support structure labels, customs and tax incentives, as well as other incentives designed to facilitate the establishment and growth of startups.

Moreover, the law includes mechanisms aimed at facilitating access to funding, markets, and investment opportunities for startups, propelling Mauritania into a dynamic era of entrepreneurial innovation.

Liquid Intelligent Technologies Improving Connectivity, Driving Intra-African Digital Trade

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

Two Years After Assenting to Startup Act, Senegal Establishes a Startup Commission

September 12, 2023

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.

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.

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

Senegal Assents To Implementation Of Startup Act, One Year After

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

Egypt Financial Regulatory Authority Initiates New Startup Valuation Methods: What’s at Stake?

August 26, 2023

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In a transformative stride toward fostering a dynamic startup ecosystem, the Financial Regulatory Authority (FRA) of Egypt, in charge of the country’s capital markets, has unfurled a comprehensive framework for evaluating startups. While the headlines spotlight the impact on fintech entrepreneurs, a deeper exploration is essential to grasp the profound implications these criteria have across the spectrum of emerging businesses in Egypt.

A New Dawn for Startup Ventures

Central to the FRA’s visionary decision is the recognition that startups — spanning sectors — operate within a unique realm. By classifying startups as enterprises with brief operational histories, actively in search of market niches, and often driven by technological innovation, the FRA has beckoned a realm of possibilities tailored not only to fintech trailblazers but to all aspiring entrepreneurs in Egypt.

1. Customized Valuation Pathways for Innovative Pioneers

The FRA’s criteria unravel a valuation revolution with broader implications. Startups, irrespective of their industry, are characterized by their novel solutions and disruptive approaches. Acknowledging this, the FRA introduces the “risk capital” method — a valuation paradigm finely attuned to the intricate phases startups traverse. By factoring in exit value, investment multiplier, retention ratio, and investment recommendations, this approach deviates from traditional valuation methods. It acknowledges the inherent unpredictability of growth trajectories across sectors.

Practical Impact: Visualize a medtech startup pioneering advanced diagnostic tools. In its early stages, revenue streams may be modest. With the “risk capital” approach, this startup can spotlight its innovative impact on healthcare, positioning itself for valuation based on the transformative potential it holds.

2. Elevating Investor Trust through Transparency

Startups often teeter on the edge of uncertainty in negotiations, a challenge aggravated by the absence of standardized valuation approaches. Addressing this critical concern, the FRA’s criteria introduce a clear and standardized valuation framework. This framework not only fosters investor confidence but becomes the bedrock for startups — whether in healthcare, e-commerce, or renewable energy — to engage in negotiations and funding discussions armed with a universally understood valuation methodology.

Practical Impact: Picture a renewable energy startup with pioneering solar solutions. In discussions with investors, the standardized valuation framework becomes the common language, enhancing mutual understanding and facilitating investment decisions.

3. Strategically Navigating Market Dynamics

The timing of market entry and exit is pivotal for startups, regardless of their field. The FRA’s criteria establish definitive benchmarks for these strategic decisions. By aligning with these markers, startups can synchronize their operations with market undulations, capitalizing on sector-specific trends — a principle resonating throughout industries from agribusiness to fashion.

Practical Impact: Imagine a fashion tech startup introducing sustainable apparel. The FRA’s criteria guide its entry, allowing it to tap into seasonal trends, optimize its offerings, and resonate with the demands of conscious consumers.

4. Governmental Acknowledgment and Nurturing Ecosystems

The criteria for startup evaluation extend beyond mere valuation methodologies; they encapsulate a profound governmental acknowledgment. The stamp of approval from the regulatory body extends a sense of recognition to all startups, from social impact initiatives to e-commerce disruptors. This recognition, backed by the FRA’s criteria, sets the stage for potential governmental support and incentives, galvanizing innovation across sectors.

Practical Impact: Envision a social impact startup working on alleviating water scarcity. The FRA’s criteria, coupled with governmental recognition, position this startup to access incentives and support, amplifying its mission for a water-secure future.

5. Pioneering International Engagement

The FRA’s criteria resonate beyond national borders. By harmonizing Egypt’s startup evaluation practices with international standards, startups can confidently engage with regional and global investors. This international alignment opens doors for startups — be it fashion, agriculture, or tech — to tap into a global network of investment opportunities.

Practical Impact: Visualize an agritech startup creating efficient irrigation solutions. With Egypt’s valuation methodologies aligned globally, this startup can captivate international investors who share a common understanding of its potential impact on the agriculture sector.

6. Fostering a Culture of Innovation

Innovation is a common thread weaving through all sectors. The FRA’s criteria not only symbolize regulatory changes but stand as a testament to Egypt’s commitment to nurturing innovation, irrespective of domain. From biotech breakthroughs to AI advancements, the criteria affirm the nation’s dedication to propelling innovation across the board.

Practical Impact: Picture an AI startup revolutionizing customer service. With the FRA’s criteria fostering a culture of innovation, this startup finds an environment that nurtures its growth and supports its transformative ambitions.

In the intricate tapestry of Egypt’s startup ecosystem, the FRA’s criteria emerge as a golden thread, weaving together a diverse array of industries. Beyond technicalities, these criteria crystallize into real-world opportunities for every entrepreneur. Egypt’s commitment to innovation is not confined — it’s an inclusive invitation to all sectors to seize the promise of transparency, strategic guidance, and governmental recognition.

Startup valuation Egypt Startup valuation Egypt Startup valuation Egypt

$64 Million to Land a Digital Bank License in Egypt under New Rules: Here’s a Checklist of Requirements

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

After A Major Crackdown in Morocco, Yango Finds Acceptance in Cameroon with a New License

August 25, 2023

In the wake of a recent crackdown on unlicensed ride-hailing services in Morocco, the international ride-hailing platform Yango has secured a new license to operate in Cameroon, marking a significant shift in its expansion strategy. The move comes after a series of intense negotiations and discussions between Yango and the Cameroonian government, culminating in an official authorization granted by the Minister of Transport, His Excellency Jean Ernest Masséna Ngallé Bibéhè, on August 16th.

This development follows Yango’s entanglement in a legal battle in the Casablanca-Settat region of Morocco, where the company faced allegations of operating without proper permits and approvals. The Moroccan authorities accused Yango of utilizing unlicensed vehicles and unprofessional drivers, leading to clashes with traditional taxi drivers and sparking concerns about road safety and regulatory compliance.

Why Nigeria’s Moniepoint is Going to Kenya and What It Means for the Fintech Space

In Cameroon, however, Yango’s story takes a different turn. The granting of the license signifies the Cameroonian government’s openness to working with international digital platforms while ensuring they adhere to local regulations. The decision was reached after extensive dialogues between Yango’s leadership and various Cameroonian officials, including Prime Minister Joseph Dion Ngute, Finance Minister Louis-Paul Motazé, Minister of Posts and Telecommunications Minette Libom Li Likeng, and Minister of Transport Jean Ernest Ngalle Bibehe Massena.

Yango’s participation in a three-day workshop organized by the Cameroonian Ministry of Posts and Telecommunications (MINPOSTEL) played a crucial role in shaping the regulatory framework. The workshop paved the way for a nuanced approach to regulating digital platforms, particularly those operating in the transportation sector. This tailored approach demonstrates a willingness to accommodate the evolving landscape of digital services while ensuring accountability.

Clovis Pilla, Yango’s Country Manager for Cameroon, expressed gratitude for the transparent and comprehensive decision-making process. Pilla highlighted the positive implications of the license for both Yango and its Cameroonian partners. He noted that the authorization enables local transportation companies to digitize their operations, generate employment opportunities, and provide innovative, secure, and affordable transportation solutions to the Cameroonian population.

Yango’s entry into the Cameroonian market is poised to have far-reaching implications. The license not only validates Yango’s commitment to regulatory compliance but also serves as an exemplar for other digital platforms seeking to establish a presence in African markets. By fostering an environment of cooperation and dialogue, Cameroon sets a precedent for facilitating technological innovation while safeguarding national interests.

As Yango embarks on this new chapter in Cameroon, its acceptance and adherence to local regulations stand as a testament to the potential for harmonious collaboration between international digital platforms and national governments. This milestone marks not only a victory for Yango but also a promising step toward the responsible growth of the ride-hailing industry in the African continent.

Yango Cameroun Yango Cameroun

Morocco’s Ride-Hailing Graveyard Welcomes Its Newest Newcomer: Yango

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

Mobile Money Service M-PESA Now Live in Ethiopia

August 17, 2023

Marta Hailemariam, head of payment settlement at NBE

A groundbreaking moment has arrived in Ethiopia’s financial landscape as M-PESA, the revolutionary mobile financial service by Safaricom, has officially launched. This achievement comes just three months after securing the esteemed Payment Instrument Issuer License from the National Bank of Ethiopia (NBE) in May 2023.

The journey to this pivotal juncture has been marked by careful planning and a meticulous three-month pilot phase. Through extensive technical preparations and strategic collaborations with key banks, M-PESA has emerged as a transformative force in the Ethiopian financial sector. The process also included a strategic recruitment drive, comprehensive training, and onboarding of a dedicated network of M-PESA agents, laying the groundwork for a seamless customer experience.

Radiating enthusiasm, Stanley Njoroge, the Interim CEO of Safaricom Ethiopia, heralded the dawn of this new era. “We are excited to go live with M-Pesa in Ethiopia and start providing Mobile Financial Services to our customers,” Njoroge exclaimed. He emphasized the far-reaching impact of M-PESA as a catalyst for financial inclusion, ensuring a “safe and secure platform for transactions” for a staggering 51 million customers spanning across seven African nations.

Njoroge’s sentiment was mirrored in his commitment to expanding M-PESA’s offerings, aiming to enhance the quality of life for its users. “We will continue to broaden the services our customers receive from the M-PESA platform that will improve the quality of life for our customers,” he affirmed, highlighting the platform’s evolving role as a transformative companion to daily life.

A testament to Safaricom Ethiopia’s dedication, the expansion efforts of the past ten months have borne fruit. The company has extended its reach to encompass 147 new towns, connecting with over four million customers throughout Ethiopia.

The accessibility of M-PESA to all Safaricom Ethiopia customers is a pivotal aspect of this transformative journey. By dialing *733# on their Safaricom line, both Android and iOS users gain instant access to M-PESA’s array of services. While the Android app, available on the Play Store, supports five languages, the iOS version is set to launch in the coming weeks.

M-PESA’s functionality is as extensive as it is impactful. Beyond its role in peer-to-peer transactions, M-PESA facilitates cross-border remittances, streamlines merchant payments, enables airtime purchases, and offers seamless fund transfers between personal bank accounts and M-PESA, as well as the reverse.

Paul Kavavu, Interim General Manager of Safaricom M-PESA Mobile Financial Services Plc, echoed the triumphs of M-PESA across Africa. He termed it “Africa’s most successful mobile money service,” a cornerstone of financial empowerment for both the banked and the unbanked. The remarkable success in Kenya, where over 90% of adults enjoy mobile banking access, serves as a testament to M-PESA’s transformative potential.

Kavavu expressed optimism about extending this narrative of transformation to Ethiopia, envisaging a future where M-PESA becomes a beacon of empowerment. “We look forward to replicating this success in Ethiopia and are excited to go live with the services. In the coming months, we will continue to add more functions and work with all Ethiopians to jointly realize the transformative power of M-PESA,” Kavavu proclaimed, encapsulating the shared vision of Safaricom Ethiopia and M-PESA as agents of positive change.

Cathay AfricInvest Innovation Fund Closes New Fund At $112.8M. Here’s How The Fund Will Invest

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

Securing a Government Contract in Algeria as a Startup Just Became Easier. Here’s Why

August 11, 2023

In Algeria, the process of obtaining a government contract as a startup has been significantly streamlined and facilitated by a recent legislative update. This change is outlined in the new Act, which serves to establish the general regulations for public procurement. Let’s delve into the key aspects of this Act and the reasons why startups now have an improved chance of securing government contracts.

Definition and Scope of Public Contracts (Article 2, Article 9)

The Act defines public contracts as written agreements between a public purchaser, termed the “contracting service,” and one or more economic operators referred to as “co-contracting partners.” These contracts aim to fulfill the needs of the contracting service in various areas such as works, supplies, services, and studies. The Act emphasizes that these contracts are subject to specific conditions set forth by the law and existing regulations.

Access and Fairness (Article 5)

One of the cornerstones of the Act is the principles of freedom of access to public procurement, equal treatment of candidates, and transparency of procedures. This implies that startups, as well as established companies, have an equal chance to participate in the bidding process and secure government contracts. The Act ensures a level playing field, preventing any discrimination based on size or origin.

Specific Cases for Direct Negotiation (Article 41)

The Act outlines instances where direct negotiation can be used, which is a significant benefit for startups. These cases include scenarios where a particular operation can only be undertaken by a single economic operator due to factors like monopolistic situations, technical considerations, or urgent needs. For instance, if a startup has a unique technological solution that is crucial to address an imminent danger to public order, the contracting service can engage in direct negotiation with the startup to swiftly implement the solution.

Promoting National Production and Priority Projects (Article 41)

Startups involved in national production efforts or priority projects of national importance may benefit from direct negotiation. This signifies that the government is actively promoting startups contributing to the local economy or projects with strategic significance, thereby providing a favorable environment for startups to flourish. For example, a startup specializing in renewable energy solutions might be directly engaged to support a national initiative aimed at reducing carbon emissions.

Emergency Situations and Urgent Needs (Article 41)

In cases of emergencies such as imminent danger to investments, public order, or health crises, the contracting service can expedite the award of contracts through direct negotiation. This flexibility accommodates urgent requirements, enabling startups to contribute their innovative solutions promptly. For instance, if a startup has developed a technology that can address a sudden health crisis, the government can directly negotiate with the startup to ensure swift deployment of the solution.

Encouraging Startup Initiatives (Article 41)

Startups engaged in labeled initiatives, such as those aligned with the promotion of startups and digital innovation, are incentivized by the Act. This implies that the government acknowledges the potential of startups to drive innovation and economic growth, thereby facilitating their engagement in government projects. As an illustration, if a startup is working on an innovative digital solution that aligns with national innovation goals, the government can promote this startup’s participation through direct negotiation.

Collaboration and Coordination (Article 35)

Startups can collaborate with each other or established companies to collectively bid for government contracts. Grouping of orders or the use of central purchasing bodies can enhance startups’ chances of successfully bidding for contracts, pooling their resources and expertise. For instance, a consortium of startups specializing in different aspects of a project, combined with an established company’s expertise, can present a comprehensive solution to the government’s needs.

Specificity and Flexibility (Article 41)

The Act recognizes the uniqueness of startups and their specialized offerings. This understanding allows startups to engage in projects that require specific technical skills or artistic considerations, potentially paving the way for innovative solutions to be implemented in public projects. For example, if a startup has a patented technology that aligns with a government project’s technical requirements, the startup can be engaged directly to contribute its expertise.

Accountability and Training (Article 8)

The Act mandates that civil servants and public agents involved in procurement undergo training and continuous development. This guarantees that startups interacting with government entities are dealing with well-trained professionals who understand their needs and can provide necessary guidance. This training ensures that startups receive informed assistance during the procurement process, enhancing their chances of successful engagement.

Emphasis on Public Interest and Sustainability (Article 7)

Public contracts awarded to startups should serve the general interest and align with environmental considerations and sustainable development objectives. This demonstrates a commitment to utilizing startups’ innovative capabilities to address societal and environmental challenges. As an example, if a startup has a solution that can contribute to water conservation or waste reduction, the government can directly negotiate with the startup to integrate the solution into public projects.

In conclusion, the recent amendments to Algeria’s public procurement laws have significantly improved the landscape for startups aiming to secure government contracts. The Act’s provisions emphasize fairness, flexibility, and the integration of startups’ innovative solutions in various sectors, fostering an environment where startups can play a pivotal role in contributing to the nation’s progress.

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Download the new law at: https://afrikanheroes.gumroad.com/l/Algeriaprocurementlaw

Key Reasons Why Investors Backed Nigerian Mobility Fintech Moove in $76M New Funding

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

Egypt’s Premier Fintech Fawry Secures License to Finance Businesses

August 8, 2023

Fawry, the pioneering force in Egypt’s e-payment landscape, has announced a significant advancement in its strategic vision as its subsidiary, Fawry Microfinance, attains preliminary approval from the the country’s Financial Regulatory Authority (FRA) to introduce Small and Medium Enterprise (SME) financing to its extensive portfolio. The green light for this new initiative comes as a pivotal stride in Fawry’s overarching growth strategy, which encompasses broadening its service spectrum and forging new avenues for revenue diversification.

Fawry’s trailblazing journey has continuously carved out landmarks in the digital financial sector, and this latest feat underscores its commitment to fortify its presence as a leading digital finance facilitator in Egypt. As the economy evolves and digital transformation permeates every facet of business, Fawry Microfinance’s forthcoming SME financing offering is poised to synergize with its sibling subsidiaries, constituting an integrated ecosystem of financial services that cater both to individual and enterprise needs.

Eng. Ashraf Sabry, Chief Executive Officer of Fawry, remarked, “The attainment of regulatory approval by Fawry Microfinance stands as a testament to the relentless dedication exhibited by the entire team. This milestone represents a new era for Fawry, one that has been diligently crafted over several months. Upon its official launch, this novel addition to our service repertoire will empower us to tap into untapped segments, underscoring Fawry’s pivotal role in advancing financial inclusivity across Egypt. We anticipate that this green signal, coupled with the forthcoming expansion of Fawry Microfinance’s suite of services, will not only bolster the company’s financial performance but will also foster a symbiotic environment that caters to both businesses and individuals.”

*Eng. Ashraf Sabry is the Chief Executive Officer of Fawry. Credits: Fawry*

In a remarkable achievement unveiled in 2022, Fawry Microfinance’s cumulative loan issuance eclipsed EGP 1 billion ($63.6 million) since its inception. Established in 2018 with a core objective to proffer accessible and affordable financial solutions to Egypt’s burgeoning small businesses and entrepreneurs, Fawry Microfinance has harnessed the prowess of a comprehensive digital infrastructure to dispense loans and streamline repayments. The laudable endeavors of Fawry Microfinance stand as a vital contribution towards the nation’s drive for financial inclusion and the digitization of financial services.

CEO Eng. Ashraf Sabry reiterated the paramount importance of financial inclusion, stating, “The value of affordable financial services is becoming increasingly evident with each passing day. By granting access to such services, small- and medium-sized businesses, which constitute the backbone of Egypt’s labor force, can expand, invest, and foster inclusive economic progress. Fawry Microfinance takes pride in its track record of creating tangible opportunities for entrepreneurs and families, enabling them to invest in their futures and aligning with the government’s endeavor to achieve sustainable growth by extending marginalized groups’ reach to financial services.”

Amidst the echoes of the COVID-19 pandemic’s influence on global economies, Fawry Microfinance’s portfolio burgeoned remarkably in 2021. The year concluded with an outstanding portfolio of EGP 437 million, exhibiting a commendable growth of 67 percent over the EGP 267 million recorded at the end of 2020. Impressively, the subsidiary achieved a collection rate of 98.5 percent by the end of 2021, reaffirming its operational efficiency and resilience.

With an impressive client base, nearly 40% of whom are under 30 years old, Fawry Microfinance substantiates Fawry’s unwavering dedication to sustainability and the overarching goal of fostering financial inclusivity. This commitment extends beyond urban centers, as Fawry Microfinance’s services span across 25 out of Egypt’s 27 governorates, encompassing a significant portion of rural and economically underserved communities.

The landscape is further illuminated by the revelation that a substantial portion of Fawry Microfinance’s clientele, nearly 60%, constitutes prior Fawry customers introduced to the Company’s merchant network through Fawry POS equipment. This network enabler allows the subsidiary to offer a range of services, spanning omnichannel acceptance to the establishment of e-commerce platforms, underpinning a holistic approach to financial service delivery.

Founded in 2008, Fawry has emerged as Egypt’s foremost e-payment platform, catering to both banked and unbanked populations. At its core, Fawry facilitates electronic bill payments, mobile top-ups, and a plethora of services, serving millions across Egypt. In tandem, Fawry’s peer-to-peer model empowers corporates and SMEs to embrace electronic payments through diverse channels, including websites, mobile devices, and POS systems. With an extensive network spanning 36 member banks, a dynamic mobile platform, and an expansive agent network exceeding 250,000, Fawry orchestrates approximately 3 million daily transactions, benefiting an estimated 35 million users each month.

Fawry license Fawry license Fawry license

Orange Telecom Engages Egypt‘s Fintech Firm Fawry To Expand Its Cash Wallet

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