(Ecofin Agency) - Approved five years after the startup law was passed, the implementation decree lays out a clear regulatory framework for these innovative businesses. It introduces a set of incentives designed to fuel their growth and fast-track their expansion.

Senegal’s Council of Ministers, led by President Bassirou Diomaye Faye, approved on January 29 a decree implementing the startup law enacted on January 6, 2020.

This new regulation provides a clear legal framework for innovative young companies, creating a business-friendly environment to support their growth. It sets the criteria for obtaining startup status, streamlines the registration process, and introduces a range of incentives, including access to funding, tax exemptions, institutional support, training programs, and partial coverage of social security contributions.

While some have criticized the delay in adopting these regulations, there is broad agreement that this is a concrete step toward strengthening Senegal’s startup ecosystem and making it more competitive.

In 2024, Senegalese tech companies raised $36 million in equity funding, ranking the country eighth in Africa, according to Partech Africa. It is a promising start but still far behind the continent’s top four—Nigeria, South Africa, Egypt, and Kenya.

With this new regulatory framework, Senegal is sending a strong message to entrepreneurs looking for opportunities and support.