Startup Cameroon - Afrikan Heroes

How Angel Investors Are Building Cameroon’s Startup Dreams: Bohikor Joins The List

July 26, 2023

In a momentous stride towards financial inclusion, Cameroon-based fintech startup Bohikor recently announced securing a substantial investment of $20,000 from the Mountain Angel Network. This landmark investment serves as a testament to the rising significance of angel investors in Cameroon’s startup ecosystem. As the country continues to foster a climate of innovation and entrepreneurship, angel investors have emerged as the driving force behind the success of early-stage startups, bridging the funding gap and providing invaluable support to these promising ventures.

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Bohikor’s Journey: Empowering Financial Inclusion

Founded in 2021, Bohikor is on a mission to revolutionize personal finance management and foster financial inclusion in Cameroon. The startup offers a comprehensive suite of financial management solutions, including budgeting, expense tracking, savings, early earned wage access, and personalized finance coaching. The team firmly believes that knowledge about one’s spending habits breeds financial accountability, and their platform empowers users to plan for a secure and prosperous financial future.

Angel Investor Support: Filling the Void

As the startup scene in Cameroon began to flourish, Bohikor faced a common challenge encountered by early-stage ventures worldwide: limited access to funding. The absence of established investment funds in the country could have been a roadblock for Bohikor’s ambitions, but enter angel investors. These passionate individuals, motivated by their love for entrepreneurship and the desire to make a meaningful impact, have stepped up to provide much-needed capital and guidance.

The Mountain Angel Network’s decision to invest in Bohikor represents a significant milestone for the startup and the entire Cameroon startup ecosystem. With this financial backing, Bohikor is poised to accelerate its growth and expand its operations, ultimately bringing its innovative solutions to a broader audience. The investment also highlights the growing interest among angel investors in supporting ventures with a profound social impact, such as promoting financial inclusion and empowering individuals to take control of their financial well-being.

Angel Investors: More Than Just Capital Providers

Beyond financial support, angel investors often play an instrumental role in the success of early-stage startups. Their involvement extends beyond writing a check; they bring a wealth of experience, industry knowledge, and a valuable network of contacts to the table. For Bohikor, this mentorship and guidance from seasoned angel investors will be invaluable in navigating the challenges of scaling operations, refining their product offerings, and reaching new markets.

Looking Beyond Bohikor: The Wider Impact

Bohikor’s success story is just one of many unfolding in Cameroon’s vibrant startup ecosystem. The fintech sector, in particular, has been at the forefront of innovation, driven by the transformative potential of digital financial solutions in a largely underserved population. Moreover, the rise of angel investors in Cameroon has bolstered the confidence of entrepreneurs, encouraging more individuals to pursue their startup dreams and contribute to the country’s economic growth.

The Koree and Nkwa Examples: A Tapestry of Success

Bohikor’s achievement is not an isolated incident. The fintech startup Koree recently secured €20,000 in seed funding from the Cameroon Angels Network (CAN). This support will empower Koree to extend its operations across Francophone Africa, revolutionizing retail payment and marketing in the region with inclusive solutions for customers and merchants alike.

Similarly, Nkwa, another promising fintech venture, received a seed funding of $15,000 from a group of local angel investors associated with CAN. Nkwa’s mobile savings app has already onboarded over 12,000 users, underscoring the pressing need for financial inclusion solutions in the region.

A Symphony of Innovation: The Future of Cameroon’s Startup Ecosystem

Cameroon’s startup ecosystem is evolving into a symphony of innovation, driven by the harmonious collaboration between angel investors, entrepreneurs, and supportive government initiatives. As the country continues to unlock its entrepreneurial potential, the role of angel investors will remain indispensable. Their belief in the vision of startups like Bohikor, Koree, and Nkwa not only fosters economic growth but also sparks a cycle of positive change and empowerment across the nation.

From 2021, Startups In Cameroon Will Benefit From Tax Exemptions For Up To 5 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 continent’s pioneers in this regard

Going On IPO In Cameroon Can Attract Companies 25% Corporate Tax Rate Instead Of 33% Going Forward

November 9, 2020

African startups are not notorious for going public, especially through Initial Public Offerings (IPO) on stock exchanges, but Cameroon wants to change that narrative. To that effect, the central African country is introducing a new provision under the proposed finance law of 2021. This week, November 12, parliament in Yaounde will tear through a government proposal, under the 2021 finance law, relating to the promotion of the stock market sector. By the terms of the proposed law, companies which gom ahead to list their ordinary shares on the Central African Securities Exchange (Bvmac) will benefit from the application of reduced rates of tax on companies as follows:

A reduced rate of corporation tax of 25%, instead of the existing 33% corporation tax rate; and a reduced rate of 1.5% of the deposit and the minimum collection of corporation tax.
Also, companies that issue securities on the Bvmac bond market benefit from the application of a reduced corporate tax rate of 25%.

*The best and worst performing African stock exchanges in 2019. Source: Securities Africa*

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In the same vein, companies which are deemed to make a public offering in accordance with the provisions of the Ohada Uniform Act relating to commercial companies and economic interest groups, and which agree to admit and exchange all or part of their equity and debt securities listed on the Bvmac, benefit from the application of a reduced corporate tax rate of 25%, from the date of admission of the securities.

As of July 31, 2020, Bvmac, based in Douala, the Cameroonian economic capital, posted a capitalization of CFAF 149.5 billion, for only four companies listed in the entire Cemac region (Cameroon, Central Africa, Gabon, Equatorial Guinea and Chad). These are the Cameroonian companies SEMC, Socapalm, Safacam and SIAT Gabon. Which means that a lot of companies are still reluctant to go public.

In terms of equities, the capitalization of Bvmac reached around 1% of Cameroon’s GDP, while those of the stock exchanges of Nigeria and West Africa, based in Côte d’Ivoire, already reached 10 respectively and 26% of the GDP of the countries concerned in 2018, according to the Absa Africa Financial Markets Index.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer