Are you aware of common legal issues start-ups face in Africa?
Tech in Africa has a promising future, no doubt about that. With a current population of around 1.2 billion people projected to reach 1.7 billion by 2030. Africa has the world’s largest free trade area with the youngest population in the world.
70% of the sub-Saharan population are under the age of 30. Africa’s population is young and growing; the median age for the continent is 18, which is 14 years younger than any other in the world. Africa’s population is set to double to two billion by 2050.
That said, let’s take a closer look at the Tech ecosystem in Africa.
The Tech Ecosystem In Africa
The Tech ecosystem in Africa raised $5.2 billion in 2021 and is predicted to raise $7 billion in 2022. As of January 2022, Nigeria had more than 109 million internet users, the highest in Africa, with only 22% of access to internet connection achieved in Africa in 2022. It is obvious that the tech ecosystem in Africa has barely scratched the surface.
With so much potential, the African start-up market is fraught with one legal challenge which usually spirals into different sub-issues. In this series, we look at how government policies affect start-ups in the African tech ecosystem.
Legal Issues Start-Ups Face – Government Policies
From business structure to taxation, compliance, challenges with product launch, and business engagement with consumers, African start-ups find themselves in a web of legal issues which all boils down to sometimes, inconsistent policies from the government and industry regulators.
Though countries like Nigeria with the recent start-up Bill, Kenya, and other African countries have been attempting to create an enabling environment for the African start-up ecosystem, the truth is that more work needs to be done. These issues will be considered in details.
References
Dasha kroshkina, this is why global companies should enter the African market, https://www.entrepreneur.com/article/404166
Statista, Africa: number of internet users in selected countries 2022, https://www.statista.com/statistics/505883/number-of-internet-users-in-african-countries/
Partech report, 2021 africa tech venture capital, https://partechpartners.com/2021-africa-tech-venture-capital-report/
Techcabal, Africa is on track to hit $7b, or more, in startupfunding this year, https://techcabal.com/2022/02/25/african-startups-may-hit-7b-in-funding/
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