African startups are increasingly vital to the continent's technological development, driving innovation, creating jobs, and attracting investment. Their growth requires a supportive environment to maximize their impact and strengthen their contribution to the digital economy.

Senegal's legal framework for startups is entering a new phase. On Wednesday, January 29, the government adopted the implementing decree for Law No. 2020-01 of January 6, 2020, governing startup creation and promotion. This long-awaited decree, years in the making, establishes a clear regulatory framework and introduces incentives for young, innovative companies.

The law aims to stimulate startup creation and growth in Senegal, focusing on creativity, innovation, new technologies, and national and international competitiveness. To qualify, companies must be based in Senegal, with at least one-third of their capital owned by Senegalese citizens, whether residing in the country or abroad. Existing businesses meeting the criteria can also benefit from startup status, which offers advantages such as streamlined administrative processes, preferential customs regimes, training and capacity-building programs, specific tax incentives, and access to financing.

This decree aligns with Senegal’s broader digital transformation strategy. In February, the country will launch the "New Technological Deal," an ambitious program designed to reshape the economy around four key pillars, including innovation and tech entrepreneurship. As part of this initiative, Senegal signed a memorandum of understanding with Google to provide artificial intelligence solutions and digital tools to accelerate the growth of local startups and SMEs.

The law's enactment is a major step forward for Senegal. By fostering a supportive environment for startups, it paves the way for increased entrepreneurial activity, greater competitiveness in global markets, and accelerated digital transformation. This structured legal framework is also expected to attract more investors and boost the tech sector, positioning Senegal as a leading innovation hub in West Africa.

By Samira Njoya,

Editing by Sèna D. B. de Sodji