Policy & Regulations - Afrikan Heroes

A New Law Is Coming To Enable Startups Deliver Digital Banks, More Fintech Offers In Algeria. Here’s What You Need To Know

February 7, 2023

Yacine El Mahdi Oualid, Algeria’s Minister of Knowledge Economy, Start-ups, and Microenterprises, stated Monday in Algiers that a bill relating to currency and credit would establish new activities allowing the creation of competitiveness among Algerian startups, particularly in terms of modernising payment methods.

Mr. Oualid emphasised “the importance” of this legal text for the country’s economy during an appearance before the Finance and Budget Committee of the National People’s Assembly (APN), which was presided over by Lakhdar Salmi, the commission’s president, during a discussion on the currency and credit bill. Basma Azouar, the minister responsible for relations with the legislature, was also present. For startups, the proposed law “institutes new operations in the financial business, particularly in terms of modernization of methods of payment”.

This piece of legislation, which accompanies the transformations that have occurred in the banking ecosystem, particularly with regard to the authorization of investment banks, digital banks, payment service providers, and independent intermediaries, as well as the change in office opening hours, “will allow the creation of a new competitive ecosystem for Algerian startups,” the minister stated, adding that the market value of payment services and independent intermediaries has increased.

This bill will also allow for the development of payment methods in Algeria as well as the spread of electronic payment culture, which will encourage startups and technology companies to contribute to this dynamic, according to Mr. Oualid, who notes that the majority of startups in Africa, carriers with a market value of more than one (1) billion USD, are active in the field of fintech.

Read also Algeria Venture Launches A New $80M Innovation Fund With A Focus On Startups

Particularly, for the first time, electronic payment facilitators (payment service providers) that would advance currency transactions in the North African country are included in the proposed law. On the other side, the law will also make it possible for digital banks to be established, allowing them to play significant roles in the Algerian economic scene.

The measure comes “to make up for the shortfalls documented last year, particularly in terms of methods of payment”, specified the Minister, in the sense that “e-payment, being formerly the prerogative of banking establishments, has become current practise among start-ups in large countries”.

Mr. Oualid added that the Algerian digital dinar, whose creation and administration are overseen by the Bank of Algeria in accordance with the law, “is a good measure that is in tune with the developments made,” indicating that all nations are moving in this direction and are “threatened by cryptocurrencies.”

The draught law on currency and credit was presented last Thursday by the Minister of Finance, Brahim Djamel Kassali, before the APN’s Finance and Budget Committee. It aims to increase the governance and transparency of the banking system, with the Bank of Algeria as its leader, by giving the Council of Money and Credit (CMC) more authority.

The Minister of Finance at the time stated that this text of law, which repeals Ordinance No03–11 of August 26, 2003 relating to money and credit, as amended and supplemented, is a part of “the reforms initiated by the public authorities and the restructuring of the monetary system and finance in Algeria, in order to adapt to the latest developments and better meet the requirements of the expected economic reform.”

law fintech Algeria law fintech Algeria

Nigeria’s SunFi Raises $2.3M Seed Funding To Grow Its Operations

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

Here Are New Rules Crypto Dealers In South Africa Must Know About Advertising Crypto Going Forward

January 25, 2023

A new provision for dealing with crypto products has been added to the Code of Advertising Practice by the Advertising Regulatory Board (ARB).

The new regulations, which were developed after consultation and agreement with the cryptocurrency industry, are aimed at preventing customers from being duped by dishonest advertisements.

“This is a wonderful example of an industry that sees the harm that could be done in its name, and steps up to self-regulate the issues without being forced to do so by government,” says Gail Schimmel, CEO of the ARB. “This has been an exciting project and we know that it will result in better protection for vulnerable consumers.”

“Rules around ethical advertising are non-negotiable for us as an industry,” says Marius Reitz, GM for Africa at Luno, who has spearheaded the project. “We don’t want rogue advertisers making claims that mislead vulnerable consumers about the reality of crypto investment. It is important to us that consumers enter this exciting market with their eyes open and their expectations realistic.”

The new clause is Section III Clause 17, and the complete text (rephrased for clarity) is as follows:

17.1 Advertisements must openly and unequivocally declare that purchasing cryptocurrency assets has the risk of capital loss because their value is erratic and subject to both ups and downs. The language used should have, or should convey, the same meaning as the example below: Investing in cryptocurrencies carries the risk of losing money.

17.2 Advertisements must comply with Clauses 2 and 4.2.1 of Section II In particular:

17.2.1. The overall message of the advertisement must not contradict the warning statements set out in Clause 17.1 above.

17.2.2. An advertisement for a certain crypto asset service or product must clearly describe the applicable product or service to the intended target audience.

17.2.3 Advertisements must give a balanced message about the returns, features, benefits and risks associated with the product or service.

17.2.4 Rates of return, estimates, and forecasts must be backed up by sufficient documentation that meets with Section II’s Clause 4.1 standards. Any rate of return, estimate, or forecast must be disclosed, together with any key assumptions that were used in its calculation.

17.2.5 Past performance data must explicitly state that past results are not necessarily indicative of future results. Any historical period or past performance shouldn’t be presented in a way that makes the marketed good or service look good.

17.3. Advertisements from companies selling crypto assets but not authorised credit providers shouldn’t promote buying crypto assets on credit. This does not prevent marketing from mentioning the payment options that crypto asset service providers offer.

17.4.The standards in Appendix K must be followed when influencers or ambassadors are used to market a crypto asset product or service. The ambassador or influencer may only offer factual information, in particular. Influencers and ambassadors are not permitted to make advantages or return promises or to give advice on buying, selling, or investing in crypto assets.

Crypto Advertising Code South Africa Crypto Advertising Code South Africa

Nigerian Delegation In Tunisia To Discover Its Startup Ecosystem, Ahead Of Startup Act Implementation

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, Ivory Coast Government Adopts Startup Law, Establishing Startup Labels

January 22, 2023

In August 2021, startup ecosystem players in Ivory Coast gathered in Yamoussoukro to develop a local law fostering startups in the West African country. Two years later, the bill has been approved by the Ivorian Council of Ministers, the country’s top executive decision-making body.

The bill, among other things, establishes the terms of financing and support for digital startups under Ivorian law. Its special goal is to support the development and sustainability of these vulnerable enterprises’ creative activity until they reach maturity, in order to maximise their contribution to the transformation of the national economy and the quality of life of the people.

Through that purpose, the law establishes an incentive system, including tax and customs benefits, as well as many other administrative assistance and facilitation measures, for the benefit of national startups, from the formation phase to the development phase.

It also calls for the formation of a Committee, a specific organisation charged with registering and labelling existing digital startups on across the country in order to properly support them.

In early 2021, the Ivorian Minister of Youth Promotion and Youth Employment, Mamadou Touré, launched, in Abidjan, a college of technological and innovative companies called “Côte d’Ivoire Innovation 20 (# Ci20)” aimed, in particular, at uniting all startups in the West African country. The organization comprises 15 young entrepreneurs, including 11 winners of the National Award of Excellence and more than 85 national and international awards.

startup law Ivory Coast

A New Startup Bill In Cote D’Ivoire Is Nearing Completion

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

Here’s What You Need To Know About The New Launch Of A National E-Learning Platform “My school at home” In Ivory Coast, The First In Africa

January 19, 2023

Mariatou Koné, the Ivorian Minister of National Education and Literacy, officially launched “My school at home,” a digital portal intended for distance education, in Abidjan.

The new platform, accessible at www.ecole-ci.online, intends to assist schooled and unschooled students in their everyday study. The debut of the new platform has multiple implications.

Marc Vincent, Unicef’s representative in Côte d’Ivoire

“The first is that Côte d’Ivoire has long been active in remote education efforts, and the government plans to continue developing this digital and innovative educational offering. Second, the Ivorian government openly distributes lectures, exercises, films, and even textbooks to students, parents, and teachers, by consulting the platform on a frequent basis. It is primarily instructive and serves as an interactive discourse tool,” Mariatou Koné stated.

Côte d’Ivoire, in reality, has been working for several years to digitise its education system. Following the country’s politico-military crisis in 2004, which resulted in school closures, the Ivorian administration considered dematerializing education. Several projects in this area have sprouted up across the country. The Covid-19 pandemic in 2020 increased the activity begun earlier by education authorities.

One of the ideas created from Covid-19 is the “My school at home” portal. It is a compilation of all national educational resources. It contains over 4,000 lesson sheets, 5,000 exercises, primary school manuals, 624 instructional capsules of no more than 15 minutes in length summarising whole lessons, 2,000 interactive exercises (Quiz), and at least 150 practical work sheets.

According to Marc Vincent, Unicef’s representative in Côte d’Ivoire, this platform will help over 6 million children in preschool, primary school, and general secondary school. “This is the first project of its kind on the African continent. Côte d’Ivoire now positions itself as Africa’s technological leader,” he went on to say.

home school Ivory Coast home school Ivory Coast

Tunisian Gaming Startup Galactech Acquired

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

Tunisian Authorities Prohibit Newly-Funded Algerian Mobility Startup Yassir From Operations

January 18, 2023

Mohammed Aziz JAOUHARI TISSAFI, General Manager of Yassir.

The Tunisian Ministry of Transport and the Ministry of Technologies issued a warning to the “Yassir Tunisia” application on Monday, January 16, 2023.

According to the two ministries, the company “Yassir Tunisia” promotes individuals to join the application to carry out irregular public transportation of people outside of the legal and regulatory frameworks in place. They believe that “Yassir Tunisia” is in significant violation of the law because this mode of transportation is subject to licence and also violates the concept of fair competition.

The ministries state that steps would be put in place “to deal with this issue, in order to protect the public service,” in collaboration with the appropriate authorities.

It will be recalled that individual cabs launched a strike on the same Monday “after the lack of responsiveness from the government and the authorities associated with the requests of experts in the field over e-transport applications”.

The Tunisian Union of Individual Taxis considers these applications to be illegal, and communication has been filed to the Central Bank and the public prosecutor to alert them to the many violations, including money laundering.

The strike was called off in the early evening following a meeting with an adviser to the Ministry of Communication Technologies who agreed to regulate e-transport applications in collaboration with the ministries of Justice and Transportation.

The Tunisian Union of Individual Taxis has decided to submit a complaint against an application’s owner.

For its part, “Yassir Tunisia” issued a press release in response to recent attacks that occurred close to the company’s headquarters and were carried out by members of one of the professional associations of taxi drivers. The company announced that all of these acts, which pose a serious risk to the company’s employees, have been reported to be used in legal proceedings.

The business wished to emphasise that “the only parties authorised to request clarifications and explanations about the company’s activity or to potentially resolve any dispute that may arise between the startup and other professional or private structures are the official structures of the Tunisian State.”

“In light of the aforementioned, as well as the gravity of the repeated threats made against the rules and institutions of the Tunisian State, Yassir reiterates its demand that the government ensure the security of its personnel and their freedom to work.

Additionally, it reiterates its desire to communicate with all relevant governmental parties while maintaining compliance with the law and customer interests, the business said.

Algerian Startup Yassir Raises $150M For Its Super App

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

Key New Things Startups And Investors Going To Algeria In 2023 Should Note

The Finance Law of 2023 in Algeria has introduced the following tax changes in respect of startups.

Research and Development (R&D) Expenses:

Costs incurred as part of corporate research and development may be deducted from income or profit (IRG/IBS) up to a maximum of 30% and up to a maximum of 200 million dinars.

With the help of these incentives, businesses of all sizes and types are urged to invest in R&D to increase their competitiveness and produce more competitive and creative goods and services.

Open Innovation

Deduction of up to 30% of revenue or profit (IRG/IBS) and a maximum of KD 200 million for costs associated with open innovation initiatives completed in conjunction with organisations that have acquired the “Startup” or “Business Incubator” label.

By allocating R&D expenses from large firms to startups and business incubators, this approach seeks to incentivize investment in incubators and startups within the context of open innovation.

Investing in startups:

30% of the exemptions received through the Algerian Agency for the Promotion of Investment are reinvested, on average, in incubator or startup capital.

This policy intends to encourage the private sector to contribute more to startup funding.

Self-Employment:

The maximum annual turnover is established at five million Algerian dinars, and the single tax rate is fixed at 5% for operations carried out under the self-employment legal system.

Algeria startups 2023 Algeria startups 2023

Nigerian Waste Recycling Management App Pakam Raises $635k In Pre-seed 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

Togo Adopts A Startup Law, Creating Labels For Startups

January 16, 2023

The Togo government is in the process of approving a measure to support technological and digital innovation. The executive, gathered in the Council of Ministers, passed “the preliminary draught law relating to the development of the innovation or startup ecosystem in Togo” yesterday, Wednesday, January 11, 2022. It had been considered at first reading a few weeks prior (Wednesday, December 21, 2022).

Towards a “Tech” Label

The text’s specific goal is to “boost Togo’s innovation ecosystem by establishing a labelling mechanism for startups and corporations” in the field of technology. This labelling will be done in accordance with “objective standards,” according to Victoire Tomegah-Dogbe’s government in a news release. These criteria will be based on “creativity, innovation, the development of high added value, as well as growth potential,” according to the executive.

Thus, the text, if approved by the National Assembly, will strive to establish an environment favourable to the “modernization of the Togolese economy”, in particular through the development of digital activities in the public and private sectors. , “for the benefit of citizens and enterprises”.

Tax and customs incentives

In particular, the law would establish an incentive tax and customs structure to encourage the adoption and growth of digital technologies. There will also be “measures beneficial to the establishment of tech startups under Togolese law,” the specifics of which are unknown at this time.

Furthermore, while Togo has few leaders in the field of tech and digital technology for the time being, the country can count several players, particularly in the financial technology sector (fintech), such as Semoa, which already offers mobile-banking and digital ticketing solutions in Togo and internationally, or DizzitUp, a recent finalist in the Ecobank Fintech Challenge.

Startup law Togo Startup law Togo

Startup Labels In Tunisia Increases To 801, With Tunis Topping The List Of Most Startups With Labels

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

Kenyan Tech Firms Kick Off Implementation Of 16% Digital Services Tax

January 5, 2023

International tech companies have informed Kenyan clients of the normal Value Added Tax (VAT) of 16% that will be applied to any given online service.

These include Netflix movie streaming and Spotify music streaming, as the taxman focuses on Kenya’s burgeoning digital industry.

E-books and videoconferencing are among the additional online services that will reportedly begin to be subject to VAT.

The new developments occur after the 2022 Value Added Tax (Digital Marketplace Supply) (Amendment) Regulations are introduced.

The company that offers QuickBooks, Intuit UK Limited, recently informed its clients that all of its services will now be subject to a 16% VAT.

According to QuickBooks, any online subscriptions beginning on or after January 31, 2023, will be subject to a 16% VAT.

The sales tax was implemented by Zoom Video Communications, a company that controls a platform for virtual meetings, in September 2022.

A 15% withholding tax will also start to be paid by foreign traders who profit from derivative contracts with local counterparties.

The Kenya Revenue Authority stated in November 2022 that it is interested in the digital economy as it implements initiatives to increase revenue and fulfil its financial year responsibilities.

This is happening as Kenya and the rest of Africa strive to embrace a “Digital Economy Blueprint,” a framework to increase their capacity to outpace economic growth.

The paper is supported by five pillars: infrastructure, innovation-driven entrepreneurship, digital skills and values, digital governance, and digital business.

President William Ruto has set a goal for the KRA of Sh2.14 trillion for the fiscal year that ends in June 2024, but he expects them to increase collection over time to between Sh4 trillion and Sh5 trillion.

“We are raising only Sh2.1 trillion in revenue which is 14 per cent of GDP. We need to raise 25 per cent of our GDP like other middle-income countries. That is between Sh4 trillion and Sh5 trillion,” Ruto said.

Kenyan tech tax

Ethiopian Audiobook and Podcast Startup Teraki Raises 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

The First Crowdfunding License In Nigeria Goes To Procrowdy

December 30, 2022

African-tech-startup-funding-rises-51-to-195M-in-2017

Procrowdy, a Nigerian proptech startup, has received a crowdfunding intermediary (CFI) license from the Securities and Exchange Commission (SEC).

Williams Omoruyi, Propcrowdy’s Head of Product Design, confirmed the news in a press release.

Procrowdy is the first platform in Nigeria to receive the licence as a result of this development.

The firm promotes itself as an inclusionary crowdfunding investing platform that allows those earning minimum wage to gain access to and climb the African real estate investment ladder.

Propcrowdy will be able to use the licence to assist investors in tapping into the lucrative real estate market.

“At Propcrowdy, we are solving the twin problem of social impact and inclusiveness for those at the bottom of the pyramid and creating wealth and economic development for small and medium-sized real estate developers,” Omoruyi explained.

Procrowdy crowdfunding license

What Does Nigeria’s New Crowdfunding Regulation Mean For Startups, In Simple Terms?

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

Why Egypt’s Public Postal Service Egypt Post Wants To Launch ECOM Africa, An Ecommerce Platform In 2023

December 27, 2022

In 2023, Egypt Post, the country’s public postal service provider, will introduce an online shopping platform. The ecommerce platform, known as ECOM Africa, intends to boost trade between Egypt and other African nations.

The new platform “would help and benefit large international e-commerce and online advertising companies, such as Amazon and Alibaba,” according to Egypt Post Chairman Sherif Farouk in an interview.

Egypt has been attempting to strengthen its postal trade with other African nations for a number of years. Egypt Post has created new initiatives to encourage trade between Egypt and the other States of the continent, on the one hand, and Egypt, on the other. The Egyptian Post and the Universal Postal Union (UPU) inked an agreement to this effect in 2020 to implement the Ecom@Africa initiative, which aims to advance and promote e-commerce among African Posts.

The deal intends to help Egypt, in addition to reaping the benefits of its physical location, overcome obstacles to e-commerce in Africa and transform the nation into an e-commerce hub for the continent. These goals are consistent with those of the nation because Egypt intends to grow its exports to other African nations from the present level of 5 billion dollars to 10 billion by 2025.

Companies in the country will be able to simply sell their goods in other countries on the continent thanks to the upcoming platform. Sherif Farouk continued, “Egypt Post’s fleet will play a crucial role in getting these products to customers in other African nations.

ECOM Africa ECOM Africa

South African Crypto Startup Centbee Raises $1M To Facilitate More Cross Border Remittances

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