KUBATANA MAGAZINE | OCTOBER 2022
AFR I LABS
AFRICAN STARTUPS ATTRACTED $4.9 BILLION IN FUNDING IN 2021, A RISE OF 250% OVER THE $1.3 BILLION RECEIVED IN 2020. —BRITER BRIDGES’ INVESTMENT STUDY
ecosystem: To support the growth of fintech across Africa, we must balance policies protecting fintech consumers with innovation- friendly policies such as harmonised regulations on data protection or cyber security. • Committing to AfCFTA and digital trade: Removing trade barriers, promoting fair competition and consumer protection at the national level, and addressing cross-border anti- competitive practices will spur the adoption of innovation from the African startup ecosystem. If implemented, these policy proposals will give African ventures a higher chance to prosper and inspire African leaders to leverage entrepreneurship and innovation as tools for social and economic development. AfriLabs recently launched an innovation policy pathways document to advise African governments and other stakeholders on the best approach to creating an enabling environment for innovation.
bolster advocacy efforts with policy proposals touching on needs that stakeholder should address to build the ideal business climate for entrepreneurs, startups, innovators, and hubs. The following six important proposals are notable: • Promoting digital skills for inclusion and employment: A push in digital skills education increases the user base and market for digital solutions in Africa. It increases the potential for young people to find work in the global digital labour market. • Encouraging entrepreneurship and startups through legislation: Creating a supportive framework that simplifies starting a business, accessing startup funding, and incentivising research commercialisation would support the expansion of entrepreneurship. • Creating an enabling environment to attract investment: To close technology gaps in
INFLUENCING NATIONAL AND PAN- AFRICAN POLICIES TO CREATE AN ENABLING ENVIRONMENT FOR ENTREPRENEURS AND INNOVATORS ACROSS AFRICA PICTURED: Panel session on policy at the 2021 AfriLabs Annual Gathering
Learn more about our innovation advisory document
Africa, our policymakers should develop-friendly regulations to encourage and diversify funding sources for start-ups. • Adopting pro-innovation tax policies: Designing digital tax policy must be collaborative and evidence-based to
BY SERGE NTAMACK, Policy Advisor, AfriLabs, and BRIAN DZIDEFO, Policy Associate, AfriLabs
The number of new startups tackling social issues increased during the past decades throughout Africa. Briter Bridges’ investment study reveals that African startups attracted $4.9 billion in funding in 2021, a rise of 250% over the $1.3 billion received in 2020. Concurrently, policymakers have strengthened the business climate to sustain entrepreneurial activities and startup financing. Countries, including Nigeria and Ghana, are looking into “Start-up Acts,” a framework of incentives to encourage private sector
investments and entrepreneurship. At the pan-African level, the AfCFTA aims to lower tariffs among members and cover policy areas, including trade facilitation and digital trade. However, more must be done to address the regulatory constraints entrepreneurs and innovators face in Africa. AfriLabs has been contributing to policy conversations and providing a forum among all participants in the African ecosystem. But we must
generate revenue for local development and prevent reversing progress in digital adoption.
• Enabling an inclusive digital financial
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