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