A startup bill provides a framework that encourages and catalyzes a culture of innovative thinking and entrepreneurship with a number of benefits:
Caters to the registration of startups
Provides a mechanism for collaboration between startups and private sector, financial institutions, investors, and research organizations
Enables regulation thereby helping startups navigate existing government obstacles
Establishes a startup fund to help them raise funding thereby opening up and encouraging local and international investment
Opens up the possibility for innovation funds for startups such as credit guarantee schemes
Facilitate intellectual property rights
Encourages local entrepreneurship as they require atleast a third ownership of equities to local citizens and minimum local number of employees
Encourages localized startup ecosystems that offer locally-relevant solutions
A set amount reserved to go to community work and research
Opens up a taxation-free time period for a set time limit to encourage faster growth
With startup funding across the African continent having already surpassed over $1 billion annually with increasing interest in the continent’s young companies, this holds great promise for young African entrepreneurs.
Blockchain and crypto projects are no doubt going to benefit from such an environment too. A clearer regulatory path and opportunities to collaborate with financial institutions, for example, would no doubt spur growth in the industry.
No doubt, there is great value to be gained for blockchain and crypto startups across Africa with the approval of these startup bills.