The Congolese government has since 2019 stepped up initiatives to develop the digital economy in the country. Beyond connectivity infrastructure, it has also made the innovation industry – a major job generator- a priority.
The government of the Republic of Congo is working on a specific legal framework for startups. The related bill was approved by the Council of Ministers last March 2. The document was then submitted to Parliament for review by Léon Juste Ibombo (pictured), the Minister of Posts, Telecommunications, and the Digital Economy.
If it is validated, it will foster the implementation of various administrative, financial, fiscal, and measures that will promote the development of tech entrepreneurship in the country. Leon Juste Ibombo explained that the government decided to develop this tool due to "the absence of a specific legal framework for the digital industry, the lack of adequate funding, and the difficulties of access to public procurement as well as the absence of a strategy to promote innovation.” The law provides for a “startup” quality label that will only be issued to young companies that have met certain conditions.
Startups are increasingly gaining ground in Africa. Between 2015 and 2021, the amount they managed to raise increased from $277 million to $5.2 billion. Fintech, e-logistics, e-commerce, e-health, have gained value with Covid-19. As digital transformation has accelerated on the continent, the Congolese government wants to enable local innovators to also benefit from the growing business opportunities.
In its report "2021 Africa Tech Venture Capital", Partech reveals that Congolese startups captured $1 million from investment funds and other VCs in 2021. Senegal, which has been enjoying a startup law since December 28, 2019, saw the volume of funds raised by its startups reach $353 million in 2021. It was $6.50 million in 2016 according to Partech.
The new framework in Congo will facilitate the emergence of more tech innovators and entrepreneurs who will promote a dynamic local industry.
Muriel Edjo
