Adopted in 2020, but made fully operational from 2025 thanks to the progressive implementation of its implementing texts and its execution mechanisms, the Startup Act marks an expected step in the structuring of the entrepreneurial ecosystem in Senegal.

Presented as a legal and fiscal framework designed to support innovative startups, it aims to remove several obstacles identified over the past decade by incubators, investors, and founders. Targeted tax incentives, easier access to financing, and official recognition of startup status are among the central pillars of the scheme.

The legislation introduces, in particular, an accreditation scheme allowing innovative companies to access temporary tax advantages, partial exemptions on certain taxes, and a simplified administrative environment. The stated objective is to reduce costs during the first years of operation, a period when cash flow remains fragile and investment needs are high.

In a context where traditional bank financing remains poorly suited to high-growth but deferred profitability models, this measure aims to improve the survival rate of startups.

Access to financing is precisely one of the pillars of the reform. The Startup Act provides for the implementation of financial support mechanisms, including facilitation and networking opportunities with investors, as well as partnerships with private sector actors. While the law establishes the principle of investment support, the operational details, such as the existence of dedicated funds or public guarantees, depend on the instruments implemented as the reform unfolds. This approach reflects a well-documented reality.

In West Africa, venture capital fundraising remains concentrated in a few major hubs, and Senegal, while dynamic, lags behind markets like Nigeria and Kenya. Authorities hope to create a more attractive environment for investment funds while also facilitating the emergence of local investors.

The law also aims to strengthen the legal credibility of startups by granting them a recognized status, which can reassure partners and investors. While access to public procurement or certain international programs is not explicitly provided for in the legislation, formalizing this status could indirectly facilitate these opportunities. It is part of a broader strategy to position Senegal as a Francophone digital hub, consistent with ongoing technological infrastructure projects and stated ambitions for the digital economy.

However, the success of the Startup Act will depend less on its announcement than on its effective implementation. The speed of approval procedures, the clarity of eligibility criteria, and coordination between government agencies will be crucial. Experience in other African countries that have adopted similar frameworks shows that the impact hinges on regulatory stability and the confidence of economic actors.

This initiative comes at a pivotal moment, as Senegal's entrepreneurial landscape matures, driven by sectors such as fintech, agritech, and digital services. While the Startup Act won't instantly transform the business environment, it sends a strong political and institutional signal. If its implementation is accompanied by a continuous improvement in the business climate and genuine access to capital, it could help firmly establish innovation as a driver of economic diversification.