<h1>African Startup Acts: Catalysts for Innovation and Economic Growth</h1>Across the African continent, there is increased focus and interest in startups as an increasing number of countries recognize them as pivotal drivers of economic growth. Tunisia’s pioneering Startup Act, enacted in 2018, has set a precedent, inspiring nations such as Senegal, Nigeria, and Côte d'Ivoire to adopt similar frameworks.&nbsp;These initiatives, which include tax incentives, simplified administrative processes and financial support, are part of a broader effort to foster local innovation. Currently, countries like Kenya, Zambia, Ethiopia and Ghana are in the process of drafting their versions of a startup law, each striving to strike an optimal balance between harnessing and empowering local talent and attracting global investment.<img src="/uploads/startup_acts_1_5a2b351a11.png"> Source:&nbsp;<a href="https://www.renewcapital.com/">Renew Capital</a><h2>Common Themes</h2>Startup Acts across Africa typically focus on fostering innovation, reducing barriers to entrepreneurship and encouraging economic growth. A closer look at these policies reveals a few key focus areas, including:<ul><li>Streamlining Bureaucratic Processes: A core theme of startup acts is simplifying and accelerating the process of registering and operating businesses. This includes reducing administrative burdens, offering one-stop-shop services and easing the procedures for obtaining permits or licenses.</li><li>Enabling Innovative Corporate Structures: To attract international investors, many of these laws aim to accommodate corporate structures that facilitate the inflow of foreign capital. In some cases, it involves introducing relaxed rules for foreign participation and making the local steps of completing a "corporate flip” seamless. This opens startups to the prospects of (i) accessing foreign investors, (ii) expanding within the continent and (iii) securing clean exits to bigger institutional investors and global companies.</li><li>Incentives and Tax Benefits: Many startup acts offer tax breaks, exemptions or reductions for new businesses to ease their financial burden in the early stages. These benefits often target specific areas like corporate income tax, value-added tax (VAT) and social security contributions.</li><li>Access to Funding and Financial Support: Startups often struggle with securing capital, so some startup acts create mechanisms for funding, including grants, loans and venture capital initiatives. They may also establish government-backed investment funds or incentives to attract private investors.</li><li>Legal Frameworks for Innovation: These acts aim to create a legal environment that supports entrepreneurial risk-taking and innovation. This might include intellectual property protections, support for tech-based businesses or frameworks that promote research and development.</li><li>Facilitating Talent and Workforce Development: Many startup acts emphasize education and skills development to ensure a steady pipeline of talent. This includes fostering entrepreneurship education and supporting training programs for both founders and employees.</li><li>Global Market Integration: Several startup acts aim to connect local startups with international markets by promoting exports, easing cross-border trade and facilitating access to global investors and partners.</li><li>Regulatory Sandbox and Flexibility: Some nations, inspired by global trends, include provisions for regulatory sandboxes—controlled environments where startups can test innovative ideas without immediately facing heavy regulatory restrictions.</li></ul><h2>The African Startup Acts Journey So Far</h2>Let’s take a look at the steps taken by African countries.<ul><li>Algeria: Has not yet implemented a Startup Act, but the&nbsp;<a href="https://www.meritas.org/insight/article/Establishment-and-Promotion-of-Startups-in-Algeria">Algerian Startup Fund (ASF)</a>, launched in October 2020, provides funding for innovative businesses and expanded in 2022 to support startups across all 58 provinces.</li><li>Côte d'Ivoire&nbsp;<a href="https://www.intracen.org/news-and-events/news/the-startup-act-takes-shape-in-cote-divoire#:~:text=Against%20this%20backdrop%2C%20the%20Startup,favourable%20legislative%20and%20regulatory%20framework.">adopted a Startup Act</a> in November 2023.</li><li>Egypt doesn't have a singular, comprehensive startup act like some other African countries but the government has implemented several initiatives and policies aimed at supporting startups and fostering innovation within the ecosystem.</li><li>Ethiopia: The Ethiopian Startup Act, also known as the&nbsp;<a href="https://shega.co/news/ethiopia-to-enact-a-startup-act">Startup Businesses Proclamation</a> has been in draft format for several years and is yet to be officially enacted. Recent feedback dialogues that Renew Capital has participated in indicate formal adoption may come any day.</li><li>Ghana: The Ghanaian Innovation and Startup Bill project is a joint initiative by Ghana’s private sector and the government to enhance the startup ecosystem through co-created legislation. The bill has been drafted but is yet to be ratified.</li><li>Kenya: The National Assembly passed the Startup Bill and it is now awaiting presidential assent to become law. Some&nbsp;<a href="https://www.msn.com/en-us/news/politics/kenya-s-senate-passes-controversial-startup-bill-mandating-r-d-spending-local-ownership/ar-AA1xIrsW">news sources</a> indicate that the startup community is not fully bought into everything that’s in the current draft. One example is the 100% Kenyan ownership requirement, as Kenya’s tech ecosystem owes much of its success to a blend of local expertise and foreign partnerships and investments.</li><li>Morocco: While there have been several initiatives aiming to support startups in Morocco,&nbsp;<a href="https://weetracker.com/2022/05/31/deep-dive-morocco-startup-ecosystem/">there is no official startup act yet</a>. The government is working on it as part of the Morocco Digital 2030 plan.</li><li>Nigeria: The Nigerian Startup Act was&nbsp;<a href="https://kpmg.com/ng/en/home/insights/2022/10/nigerian-startup-act.html">officially signed into law</a> by President Muhammadu Buhari in October 2022.&nbsp;</li><li>Rwanda’s&nbsp;Startup Act was launched in 2021 with the aim of fostering innovation and entrepreneurship in the country. The law is at its final stages of completion.</li><li>Senegal: The Senegalese Startup Act was formalized in 2020 and ratified by President Macky Sall in 2021, paving the way for innovation and encouraging high-growth startups in the country.</li><li>South Africa: While South Africa doesn't have an official startup act yet, there's a strong movement pushing for its establishment, named&nbsp;<a href="https://www.startupact.co.za/">The South Africa Startup Act Movement</a>. This is being championed by a diverse set of founders, investors and policymakers who see the impact this will have in the ecosystem.&nbsp;&nbsp;</li><li>Tanzania: The Tanzanian Startup Policy is under development, aiming to address challenges faced by startups and foster innovation.&nbsp;&nbsp;</li><li>Tunisia: The Tunisian Startup Act, launched in April 2018, was designed to support and foster the&nbsp;<a href="https://startup.gov.tn/en/startup_act/discover">growth of the country's startup ecosystem</a>. In practice, challenges remain—startups struggle with foreign currency restrictions and slow regulatory processes. There’s quiet talk of a potential revamp of the act but nothing is official.</li><li>Uganda: Startup Act Uganda is a&nbsp;<a href="https://www.uncdf.org/article/8206/doing-more-together-the-coming-of-age-of-startup-uganda-as-an-ecosystem-builder">collaborative effort</a> between the Ugandan tech startup ecosystem, Private Sector Foundation Uganda (PSFU) and Mastercard Foundation. It is still under discussion and hasn't been drafted yet.</li><li>Zambia: A startup bill is under development by the government, focusing on creating a supportive environment for innovation and entrepreneurial ventures.&nbsp;</li></ul><h2>The Big Picture&nbsp;</h2>The proliferation of startup acts across Africa signifies a shift towards nurturing homegrown innovation and entrepreneurship. As nations like Kenya, Zambia, Ethiopia and Ghana work diligently to craft and implement their own startup legislations, we hope they will collectively contribute to a more conducive environment for startups to thrive.&nbsp;

Startup Acts across Africa typically focus on fostering innovation, reducing barriers to entrepreneurship and encouraging economic growth. 

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African Startup Acts: Catalysts for Innovation and Economic Growth

<h1>Renew Capital Legal Brief - February 2025</h1>The latest changes in Africa's regulatory environmentWith a growing presence in Africa’s startup ecosystems, the Renew Capital team stays on top of the legal landscapes shaping the venture capital and investment space and provides insights for investors, entrepreneurs, industry leaders and policymakers in Africa’s dynamic business environment.&nbsp;<h2><img src="/uploads/Newsletters_and_Legal_Brief_1_f6e6e92849.png"> Egypt</h2>New fiscal incentives for small and medium enterprises (SMEs):<ul><li>The President of Egypt has introduced a new fiscal framework for SMEs engaged in professional activities, with an annual turnover of up to $40K (20M Egyptian pounds), provided they meet certain requirements. This framework offers exemptions from stamp duties, company and land registration fees and capital gains taxes, along with reduced minimum corporate income tax rates for qualified SMEs.</li></ul>Why it matters: The new fiscal framework establishes a conducive environment for business operations, thereby encouraging increased commercial activities and promoting economic growth.<h2>Ethiopia</h2>Ethiopia prepares for foreign investments in its exchange market:<ul><li>The National Bank of Ethiopia, alongside the Ethiopian Capital Market Authority and Ethiopian Investment Holdings, is actively pursuing the opportunity to allow foreign investments in the exchange market. The foreign investments may, however, be capped at a quota of 30%.</li></ul>Why it matters: Allowing the entry of foreign investors will boost Ethiopia’s exchange market and provide more capital inflow within the country.<h2>Ghana</h2>Ease of doing business: Ghanaian companies are now categorized into small, medium and large enterprises -<ul><li>Small companies - Companies with revenue or assets up to $26K (400K GHS)&nbsp;</li><li>Medium companies - Companies with revenue or assets between $26K to $646K (400K GHS to 10M GHS)&nbsp;</li><li>Large companies - Companies with revenue or assets exceeding $646K (10M GHS)&nbsp;</li></ul>With this categorization, small companies are now exempt from mandatory external audit requirements, while medium and small companies no longer need to file full annual returns with the Office of the Registrar of Companies.&nbsp;Why it matters: This new classification system reflects a significant step toward reducing administrative burdens for these enterprises.Introduction of carbon registry:<ul><li>The Ghana Carbon Registry has been established under the Environmental Protection Act of 2025. This critical database will effectively catalog mitigation projects aimed at reducing carbon emissions and will regulate the buying and selling of carbon credits within the voluntary carbon market. The Carbon Market Committee will oversee the registry and approve mitigation projects in the registry.</li></ul>Why it matters: The establishment of the Carbon Registry signifies Ghana’s commitment to the Paris Agreement and ensures the implementation of proper regulatory standards in the Ghanaian carbon market.<h2>Kenya</h2>Regulatory framework for carbon trading:<ul><li>On February 11, the National Environment Management Authority (NEMA) issued draft Climate Change (Carbon Trading) Regulations for public review. The draft regulations outline the regulatory authorities for carbon trading activities and requirements for establishing an exchange for trading registered carbon credits. Any comments on the regulations may be submitted on or before March 5.</li></ul>Why it matters: The draft regulations show Kenya’s devotion to achieving low-carbon climate development.<h2>Morocco</h2>Finance Law 2025: With the signing of the Finance Bill into law in Morocco,&nbsp;the Finance Law for 2025 introduced the following changes:<ul><li>Revised tax incentive scheme for corporate group restructuring;</li><li>Revised withholding tax rates on income from shares and dividends;</li><li>Exemption threshold for income tax for individuals increased to $4K from $3K (40K MAD FROM 30K MAD);&nbsp;</li><li>Extension of value-added tax (VAT) exemption on fresh or frozen seasoned meat;&nbsp;</li><li>Suspension of import tariffs;&nbsp;</li><li>New taxation rules for joint ventures and economic interest groups; and&nbsp;</li><li>Temporary VAT exemption on importation of select live animals and agricultural products.</li></ul>Why it matters: Companies and other stakeholders must proactively review their tax policies and measures to align with the new fiscal regulations.<h2>Nigeria</h2>Launch of Foreign Exchange (FX) Code:<ul><li>On January 31,&nbsp;the Central Bank of Nigeria (CBN) launched the Nigeria Foreign Exchange Code. The code sets the basic standards for all participating institutions in the FX market while reinforcing ethical market practices and good governance measures.&nbsp;&nbsp;</li></ul>Why it matters: The launch of the FX code signifies the CBN’s commitment to improving the FX market and ensuring compliance by all stakeholders. It is also expected to improve FX liquidity and stop unethical FX trading practices.<h2>South Africa</h2>Upcoming changes in the labor industry:<ul><li>The South African National Economic Development and Labour Council recently issued a law reform report proposing several changes including increased statutory severance pay, exclusion of startups from council agreements’ requirements, limitation of remedies for unfair dismissals and statutory provisions for large-scale retrenchment processes.&nbsp;</li></ul>Why it matters: The proposals, if accepted, present more favorable conditions for both employees and employers in South Africa.<h2>Uganda&nbsp;</h2>Electricity market moves from a single-buyer model to a multiple-buyer model:<ul><li>The Electricity Regulatory Authority has directed that consumers with the stipulated electricity demand (mostly industrial and manufacturing companies) can now purchase electricity directly from authorized generation licensees. This directive deviates from Uganda’s previous model of a single buyer purchasing electricity on behalf of the general Ugandan populace.</li></ul>Why it matters: This change provides qualified consumers with a dependable alternative for their electricity needs.&nbsp;<h2>Zambia</h2>Changes in Property Taxes:<ul><li>Starting on January 1, 2025, the Property Transfer Tax in Zambia increased from 5% to 8%. Additionally, moneylenders and building societies can benefit from tax relief on foreclosed property transfers.</li></ul>Why it matters: These changes will result in increased costs for asset transfers in Zambia but will encourage foreclosures in the property market.

With a growing presence in Africa’s startup ecosystems, the Renew Capital team stays on top of the legal landscapes.

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Renew Capital Legal Brief - February 2025

<h1>Press Release: Dabchy Enables Individuals to Monetize Their Wardrobes and Promote Circular Fashion</h1>Renew Capital invests in Dabchy to expand its circular fashion platform across North Africa and the Middle East<a href="https://latest-api.renewcapital.com/uploads/FINAL_Dabchy_Press_Release_4272959b54.pdf">Download Full Press Release</a>TUNIS, Tunisia, February 19, 2025 – <a href="https://www.linkedin.com/company/dabchy/posts/?feedView=all">Dabchy</a>, a peer-to-peer fashion marketplace, is empowering individuals to monetize their wardrobes while promoting circular fashion. The platform enables users to buy and sell clothes within a community-like environment, combining e-commerce with sustainable fashion practices.<figure class="image"><img src="/uploads/Dabchy_Team_Photo_1_0b6a8df687.jpeg" alt="A team photo of Dabchy, an early-stage startup based in Tunisia, now part of Renew Capital's portfolio."></figure>Operating in Tunisia and Egypt, Dabchy is making fashion accessible, affordable and sustainable for everyone. The platform encourages the resale of clothing, which reduces waste and promotes a shift toward more sustainable consumer habits.&nbsp;“Dabchy was created to make fashion more accessible while encouraging sustainable practices,” said <a href="https://www.linkedin.com/in/ameni-mansouri-b56a5b147/">Ameni Mansouri</a>, co-founder and CEO of Dabchy. “Our platform gives individuals the opportunity to extend the life of their clothes, save money and join a community that values fashion and sustainability.”Dabchy stands at the intersection of technology and sustainability by providing an innovative solution for reducing fashion waste. By building a community around circular fashion, Dabchy empowers users to rethink their consumption habits while creating economic opportunities for individuals.“Dabchy is driving a much-needed change in the fashion industry by promoting circular fashion and empowering individuals to monetize their wardrobes,” said <a href="https://www.linkedin.com/in/karim-ben-fadhel-41169580/">Karim Ben Fadhel</a>, investment ecosystem development manager at Renew Capital. “Their community-focused platform makes sustainable fashion more accessible and affordable while contributing to a more conscious and connected future.”With Renew Capital’s investment, Dabchy plans to enhance its platform, grow its user base and expand into new markets.&nbsp;About Dabchy Dabchy is a&nbsp;peer-to-peer fashion marketplace that enables users to buy and sell clothes within a community-driven environment. Visit&nbsp;<a href="https://www.dabchy.com/">www.dabchy.com</a>&nbsp;for more information.

Renew Capital, an early stage venture capital firm in Africa invests in Dabchy.

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Press Release: Dabchy Enables Individuals to Monetize Their Wardrobes and Promote Circular Fashion

<h1>Renew Capital Legal Brief - January 2025</h1>The latest changes in Africa's regulatory environmentWith a growing presence in Africa’s startup ecosystems, the Renew Capital team stays on top of the legal landscapes shaping the venture capital and investment space and provides insights for investors, entrepreneurs, industry leaders and policymakers in Africa’s dynamic business environment.&nbsp;<figure class="image"><img src="/uploads/Legal_Brief_13b68836a9.png"></figure><h3 style="text-align:justify;">Egypt</h3>Business zones:&nbsp;The Egyptian government is set to enact a law to create business zones in Egypt. These business zones will offer modern infrastructure and tax incentives for foreign investors, companies and other interested parties.&nbsp;&nbsp;Why it matters: Establishing business zones will significantly promote foreign investment within Egypt.New rules for pharmaceutical warehouses:&nbsp;After a 6-month suspension, a new law has been enacted for licensing pharmaceutical warehouses. The Egyptian Drug Authority is to release detailed guidelines on the new requirements for pharmaceutical warehouse owners.&nbsp;&nbsp;Why it matters: Pharmaceutical warehouse owners are to adhere to the new law and the requirements to be subsequently published by the EDA.&nbsp;<h3 style="text-align:justify;">Ethiopia</h3>Ethiopia welcomes foreign banks: The Ethiopian Government has passed a proclamation allowing financially sound and well-established foreign banks to operate and provide core banking services in Ethiopia. Representative offices of foreign banks are also to register or re-register with the National Bank of Ethiopia.&nbsp;Why it matters: This legislation will increase healthy competition, encourage foreign investments and drive innovation within Ethiopia’s financial ecosystem.<h3 style="text-align:justify;">Kenya</h3>Startup Bill progresses:On January 22, Kenya’s National Assembly passed the long-awaited Startup Bill. Although the bill still awaits presidential assent, it is expected to provide tax breaks, grants, guidelines for incubation and accelerator programs and&nbsp;government&nbsp;procurement&nbsp;opportunities for startups in Kenya.&nbsp;Why it matters: The Startup Bill, when enacted, will hopefully create an enabling environment for startups to thrive, attract foreign investments and enable access to opportunities to accelerate growth.New tax regime: In December 2024, new tax requirements were introduced in Kenya and they include:&nbsp;<ul><li>Minimum top-up tax for local subsidiaries of multinationals&nbsp;&nbsp;</li><li>Significant economic presence tax on digital services</li><li>Reduced capital gains tax rate for investments certified by the Nairobi International Financial Centre Authority</li><li>Excise duties on fees charged by local digital credit providers&nbsp;</li><li>Excise duties on digital services provided by non-residents</li></ul>Why it matters: The new tax regulations will increase the tax obligations for businesses in Kenya, including both residents and non-residents. The changes may potentially increase the cost of doing business in Kenya.AI strategy: The Kenyan Ministry of Information, Communications and Digital Economy recently issued a draft National Artificial Intelligence (AI) Strategy for public review. The strategy document embodies Kenya’s deliberate efforts to create a robust governance framework for AI.&nbsp;Why it matters: With the global attention that AI is getting from international investors, the strategy shows Kenya’s commitment to developing a stable and well-governed environment for innovation by entrepreneurs using AI.&nbsp;<h3 style="text-align:justify;">Morocco</h3>Launch of Morocco Fintech Center: Launched on January 15, 2025 in Rabat, Morocco, the Morocco Fintech Center (MFC) is a joint development platform backed by prominent Moroccan institutions including the Central Bank of Morocco. The MFC aims to support the development of fintech startups in Morocco through incubation, regulatory guidance and training.&nbsp;Why it matters: The MFC is expected to boost the fintech sector, facilitate more innovations by entrepreneurs and attract foreign investments in Morocco.&nbsp;<h3 style="text-align:justify;">Nigeria</h3>Increased regulatory oversight for digital assets: The Securities and Exchange Commission (SEC) is set to expand its regulation to include more operators of digital assets. This includes foreign or non-resident sponsors of digital assets as well as operators who actively target Nigerian investors. Additionally, the SEC has introduced a new registration category called Digital Asset Intermediaries. Draft amendments to existing rules are under review and expected to take effect on June 30, 2025.Why it matters: These proposed changes indicate increased regulatory oversight in the Nigerian digital assets sector as it gains prominence with increasing trading volumes in Nigeria.<h3 style="text-align:justify;">Rwanda</h3>Rwanda battles financial crimes: The Rwandan parliament, on January 9, passed the law on the prevention and punishment of money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction to intensify its anti-financial crime efficacy. The legislation introduced penalties for non-compliance with anti-money laundering and counter-terrorism financing obligations.&nbsp;Why it matters: These changes will assist in tackling risks of terrorist financing and financial crime vulnerabilities in Rwanda.&nbsp;<h3 style="text-align:justify;">South Africa</h3>Corporate governance changes: Starting on 27 December 2024, the Companies Second Amendment Act became effective. The legislation introduced lighter requirements for intra-group financial assistance provisions, approvals of buy-backs and cooling-off periods for auditors.&nbsp;Why it matters: This change eases internal corporate governance procedures and policies of companies registered in South Africa. It appears that this is geared towards improving the ease of doing business index of South Africa.<h3 style="text-align:justify;">Tanzania</h3>Data processors and controllers’ registration: Tanzania's Personal Data Protection Commission (PDPC) has extended its deadline for registering all data controllers and processors in Tanzania to April 30, 2025.&nbsp;Why it matters: Data controllers and processors not registered before the deadline will attract a fine between TZS100,000 ($40) and TZS5,000,000 ($1,975).<h3 style="text-align:justify;">Zambia</h3>Zambia Startup Bill:The Zambian Parliament is considering a Startup Bill and has issued a draft for public review. The bill proposes the creation of a government office dedicated to the registration and administration of startups and the establishment of the National Innovation Fund to raise capital for developing technology-related talent and education in Zambia.&nbsp;Why it matters: The Startup Bill will boost the startup industry in Zambia, while also encouraging technological innovations and advancement across the country.Pan-AfricaRegulation of crypto activities: While Nigeria intensifies its legal framework on crypto activities, Kenya and Morocco prepare to join the league of African countries (Nigeria, Mauritius, Seychelles and South Africa) to establish legal frameworks for crypto activities.&nbsp;In Kenya, public reviews and consultations are underway for its draft National Policy on Virtual Assets and Virtual Asset Service Providers, and the draft Virtual Asset Service Providers Bill 2024.&nbsp;Equally, Morocco is working with the International Monetary Fund (IMF) and the World Bank to create a legal framework to regulate crypto activities in Morocco.&nbsp; A draft crypto bill for regulating cryptocurrencies was shared with the Central Bank of Morocco’s council in December 2024.Why it matters: These moves will advance financial stability in these African countries and attract more crypto activities from relevant stakeholders.&nbsp;Visit our blog to learn more about some of&nbsp;<a href="https://www.renewcapital.com/newsroom/the-momentum-of-african-startup-ecosystems-in-a-snapshot">Africa’s startup ecosystems</a> or contact us at&nbsp;<a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> if you need to get up to speed on any of these ecosystems!&nbsp;Stay tuned for more updates in our upcoming briefs!Disclaimer: The information included in his blog does not constitute legal advice. Consumers should consult their legal advisors. &nbsp;

The latest changes in Africa's regulatory environment

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Renew Capital Legal Brief - January 2025

<h1>Press Release: Sevi Set to Revolutionize African Retail Financing with ‘Stock Now, Pay Later’ Platform</h1>Renew Capital invests in Sevi to expand its AI-driven stock financing platform for wholesalers and retailers.<a href="https://latest-api.renewcapital.com/uploads/FINAL_Sevi_Press_Release_ce246f7c03.pdf">Download Full Press Release</a>NAIROBI, Kenya, January 21, 2025&nbsp;– Sevi, a fintech company regulated by the Central Bank of Kenya, is revolutionizing stock financing for wholesalers and retailers through its “stock now, pay later” platform. Sevi addresses the challenge of insufficient working capital by providing users with access to credit while ensuring suppliers are paid upfront.<figure class="image"><img src="/uploads/20241017_019_23673d83d8.jpg"></figure>With&nbsp;<a href="https://www.linkedin.com/company/sevi-finance/">Sevi</a>, suppliers like Coca-Cola, Anytime and Philmed receive direct payments for their products, and retailers can order stock on credit, enabling them to grow their businesses. The app utilizes AI and machine learning to enhance its credit evaluation process, offering a seamless, reliable solution for credit transactions between suppliers, retailers and credit funds.“Our mission is to empower wholesalers and retailers by providing them with the working capital they need to grow their shops,” said&nbsp;<a href="https://www.linkedin.com/in/walteraandewiel/">Walter aan de Wiel</a>, founder of Sevi. “With our app, retailers can access stock on credit, repay easily and focus on expanding their businesses, while suppliers benefit from upfront payments.”Operating on a one-week credit cycle, Sevi’s innovative approach reduces friction in the supply chain, enabling smoother transactions and increased efficiency for both retailers and suppliers.“Sevi is solving a critical working capital gap in the FMCG sector,” said&nbsp;<a href="https://www.linkedin.com/in/calvin-chitangala-42b77512b/">Calvin Chitangala</a>, investment and project manager at Renew Capital. “Their platform makes stock financing more accessible and efficient, empowering businesses to grow faster.”With Renew Capital’s investment, Sevi plans to enhance its platform’s capabilities, grow its network of suppliers and retailers and continue driving financial inclusion for wholesalers and retailers.Support to Renew Capital portfolio companies is provided in partnership with Global Affairs Canada.About SeviSevi provides a user-friendly smartphone app designed for sales agents and customers, enabling them to easily pay orders on Sevi’s credit platform. Visit&nbsp;<a href="https://www.sevi.io/">https://www.sevi.io/</a> for more information.

Renew Capital, an early stage venture capital firm in Africa invests in Sevi.

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Press Release: Sevi Set to Revolutionize African Retail Financing with ‘Stock Now, Pay Later’ Platform

<h1>Press Release: Power Financial Wellness Puts Financial Control Back in Workers’ Hands</h1>Renew Capital invests in Power Financial Wellness, a platform providing workers with the tools to manage their finances effectively.<a href="https://latest-api.renewcapital.com/uploads/FINAL_Power_Wellness_Financial_Press_Release_10c740a9c0.pdf" target="_blank" rel="noopener noreferrer">Download Full Press Release&nbsp;</a>NAIROBI, Kenya,&nbsp;December 26, 2024 – Power Financial Wellness is helping workers across Africa to better manage their money. The fintech company, with customers or subsidiaries in Kenya, Uganda, Tanzania, Zambia, Rwanda and India, offers an all-inclusive financial platform that helps workers in both formal and informal sectors to improve their financial health. The company works directly with employers and gig platforms to provide their workforce with access to financial tools that reduce financial-related stress and boost productivity. Power also provides its Platform as a Service to other regulated banks, lenders, SACCOS and HR platforms looking to digitize or embed financial services.<figure class="image"><img src="/uploads/Power_Financial_Wellness_4794de2d57.jpg"></figure>The fully digital platform provides workers with a range of services to improve financial health. These services include earned wage access, which enables workers to access a portion of their earnings before the end of the month to avoid predatory lending. The platform also offers savings and investment options, longer-term loans and insurance premium financing that supports workers enrolling in health, funeral and other essential insurances. All of these services are seamlessly integrated into workers’ income streams, which makes the financial management process simple and stress-free.“We believe in empowering individuals by giving them access to tools that enable them to pay, save, borrow and protect their financial health,” said&nbsp;<a href="https://www.linkedin.com/in/brian-corey-dempsey/">Brian Dempsey</a>, founder of Power Financial Wellness. “By linking these services directly to their earnings, we provide a frictionless way for individuals to manage their finances, reduce stress and take control of their financial future.”Power provides a financial wellness ecosystem where workers have the resources and guidance to improve their financial health and access the services they need in one place. Their solution is designed to not only support day-to-day financial needs but also provide long-term financial stability and growth opportunities for workers in both formal and informal sectors.“Power Financial Wellness is addressing a critical need in both the formal and informal economies,” said Esther Mwikali, senior investment manager at Renew Capital. “Their platform offers a comprehensive, easy-to-use solution that empowers workers to manage their finances, access savings and loans and protect their future. We are committed to continue backing growth-oriented founders across the continent.”Support to Renew Capital portfolio companies is provided in partnership with Global Affairs Canada.About Power Financial WellnessPower Financial Wellness empowers workers across Africa with tools to manage their finances, improve financial health and achieve long-term stability through an all-in-one platform. Visit&nbsp;<a href="https://yourpower.io/">https://yourpower.io/</a> for more information.&nbsp;

Renew Capital invests in Power Financial Wellness, a platform providing workers with the tools to manage their finances effectively.

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Press Release: Power Financial Wellness Puts Financial Control Back in Workers’ Hands

<h1>Renew Capital Legal Brief - December 2024</h1>The latest changes in Africa's regulatory environmentWith a growing presence in Africa’s startup ecosystems, the Renew Capital team stays on top of the legal landscapes shaping the venture capital and investment space and provides insights for investors, entrepreneurs, industry leaders and policymakers in Africa’s dynamic business environment.&nbsp;<figure class="image"><img src="/uploads/Legal_brief_40a46b1227.png"></figure><figure class="image"><img></figure><h3 style="text-align:justify;">Egypt</h3>Strengthening waste management:&nbsp;The UN Development Programme (UNDP) awarded a $6.3M grant to Egypt’s Ministry of Health to build a hazardous medical waste treatment facility in Suez.&nbsp;Why it matters: The facility aims to cut harmful emissions and improve the safety of hazardous waste disposal, addressing critical public health and environmental concerns.<h3 style="text-align:justify;">Ethiopia</h3>Banking now open to foreigners:Ethiopia's parliament passed legislation on December 17, 2024 which allows foreign banks to establish subsidiaries, open branches or representative offices and buy shares in local banks. It is understood that by the law, ownership of local banks by foreign strategic investors will be capped at 40% (<a href="https://www.reuters.com/business/finance/ethiopia-passes-law-open-banking-foreign-competition-2024-12-17/?utm_source=chatgpt.com">Reuters</a>).&nbsp;Why it matters:&nbsp;This aligns with IMF-backed reforms, including floating the birr and adopting interest rate-based monetary policies as Ethiopia seeks to attract higher levels of foreign investment.&nbsp;New securities guidelines: The Ethiopian Capital Markets Authority (ECMA) now requires issuers of equity or debt securities to register and undergo verification.&nbsp;Why it matters: This oversees Ethiopia’s nascent capital markets, promoting investor confidence.QR code standards for PSPs: Starting December 1, 2024, all payment service providers (PSPs) offering QR code payments must comply with the National Bank of Ethiopia's (NBE) interoperability standards.&nbsp;Why it matters: This initiative supports seamless, standardized digital payments, boosting financial inclusion and consumer convenience.Mandatory national IDs for bank accounts: Banks must now require National (Fayda) IDs from all customers. The rollout begins in Addis Ababa and will expand in phases.&nbsp;Why it matters: This initiative could strengthen financial security and compliance but may create short-term access challenges for customers without IDs.<h3 style="text-align:justify;">Ghana</h3>Higher risk standards for banks: The Bank of Ghana issued directives on climate-related financial risks and outsourcing risk exposure. Compliance is required by 2025.&nbsp;Why it matters: These measures push financial institutions to manage risks tied to climate change and third-party operations, improving stability in the sector.<h3 style="text-align:justify;">Kenya</h3>Expanded regulation by CBK: A proposed bill would require credit guarantee firms, asset financiers and "buy now, pay later" service providers to register with the Central Bank of Kenya (CBK). Existing firms will get a timeline to comply once the bill is passed.&nbsp;Why it matters: This will bring these emerging financial services under formal regulation, reducing consumer risks.Public procurement changes: Only local firms will be eligible for government contracts under KES1B (~$7.72M). Foreign firms must partner with local companies for larger contracts.&nbsp;Why it matters: The policy aims to boost local business participation in government projects, strengthening Kenya’s domestic economy.<h3 style="text-align:justify;">Mozambique</h3>Trade agreement with Malawi: Mozambique and Malawi agreed to exempt up to 47 products from customs duties for cross-border imports and exports.&nbsp;Why it matters: The deal simplifies trade between the two countries, potentially lowering costs for businesses and consumers.<h3 style="text-align:justify;">Nigeria</h3>SEC targets short-term debt: The Securities and Exchange Commission (SEC) plans to regulate debt instruments with maturities under nine months. Draft amendments to existing rules are under review.&nbsp;Why it matters: This move closes a regulatory gap, providing greater investor protection and market transparency.Proposed tax reforms: The Nigerian Senate is considering bills that could reshape the tax landscape. Proposals include:<ol><li>Exemptions for small businesses and minimum wage earners.</li><li>Reduced taxes for workers.</li><li>VAT exemptions on rent, public transport and renewable energy.</li></ol>Why it matters: If passed, these reforms could ease the tax burden on individuals and businesses, encouraging economic growth and sustainability.<h3 style="text-align:justify;">South Africa</h3>Small businesses gain relief: Starting January 1, 2025, businesses with fewer than 50 employees will no longer need to submit employment equity reports or implement equity plans.&nbsp;Why it matters: This change reduces compliance costs for small businesses, freeing resources for growth and operations.<h3 style="text-align:justify;">Tanzania</h3>Venture capital regulation: Tanzania's Capital Markets and Securities Authority (CMSA) is finalizing rules for licensing venture capital and private equity firms. Registration with the CMSA will be mandatory.&nbsp;Why it matters: These regulations aim to promote transparency and accountability, encouraging investment in Tanzania’s growing private sector.<h3 style="text-align:justify;">Zambia</h3>Carbon trading regulation: Zambia’s National Assembly is reviewing the Green Economy and Climate Change Bill. The proposed law would require carbon traders to get authorization before operating.&nbsp;Why it matters: This would formalize carbon trading, helping Zambia attract green investment and align with global sustainability goals.Visit our blog to learn more about some of&nbsp;<a href="https://www.renewcapital.com/newsroom/the-momentum-of-african-startup-ecosystems-in-a-snapshot">Africa’s startup ecosystems</a> or contact us at&nbsp;<a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> if you need to get up to speed on any of these ecosystems!&nbsp;Stay tuned for more updates in our upcoming briefs!Disclaimer: The information included in his blog does not constitute legal advice. Consumers should consult their legal advisors.

Ethiopia's parliament passed legislation on December 17, 2024 which allows foreign banks to establish subsidiaries, open branches or representative offices and buy shares in local banks.

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Renew Capital Legal Brief - December 2024

<h1>Press Release: Talaty Uses AI to Facilitate Fast, Affordable Loans to Morocco’s SMBs</h1>Renew Capital and Witamax invest in Talaty to expand AI-driven financing solutions across Morocco and Francophone Africa.<a href="https://latest-api.renewcapital.com/uploads/FINAL_Talaty_Press_Release_41bf4fdd33.pdf">Download Full Press Release</a>&nbsp;RABAT, Morocco, December 19, 2024&nbsp; – Talaty, a Moroccan fintech, is redefining financing for small and medium-sized businesses (SMBs) with its innovative AI-driven solutions. This advanced technology streamlines traditional financial processes, enhancing access and efficiency for healthy SMBs seeking working capital. By integrating cutting-edge AI, <a href="https://www.linkedin.com/company/talaty/">Talaty</a> sets a new benchmark in fintech, empowering financial institutions with the tools they need to thrive in a competitive marketplace.<figure class="image"><img src="/uploads/image_16_aa02420405.png" alt="The Talaty team in Rabat, Morocco, driving AI-powered financing innovation across Francophone Africa."></figure>"Securing financing is a significant hurdle for SMBs with many bankruptcies among these businesses stemming from payment defaults," stated&nbsp;<a href="https://www.linkedin.com/in/soulaimane-lahrech-85810850/">Soulaimane Lahrech</a>, CEO of Talaty. "Our AI-driven platform streamlines the process, enabling our partners to deliver timely and effective financial support to these businesses."“Talaty is providing a much-needed solution to Morocco’s financial institutions regarding SMB financing challenges,” said&nbsp;<a href="https://www.linkedin.com/in/nihal-grii-9278a8ab/">Nihal GRII</a>, investment ecosystem development manager at Renew Capital. “This initiative represents a genuine stride toward financial inclusion, as it equips institutions with the necessary tools to broaden the scope of SMBs they can serve, enhancing access to essential financial services for a larger segment of the business community.”With Witamax and Renew Capital’s investment, Talaty plans to grow its activities, scale its platform and expand its innovative AI-driven credit solutions into Francophone Africa, advancing financial inclusion for SMBs across the region.About TalatyTalaty is transforming access to financing for small and medium businesses (SMBs) through AI-powered instant financing solutions. Visit&nbsp;<a href="https://www.talatypay.com/">www.talatypay.com</a> for more information.

Renew Capital, an early stage investment firm in Africa and Witamax invest in Talaty to expand AI-driven financing solutions across Morocco and Francophone Africa.

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Press Release: Talaty Uses AI to Facilitate Fast, Affordable Loans to Morocco’s SMBs

<h1>Press Release: BulkBox - Solving Supply Chain Challenges for Africa’s SMEs</h1>Renew Capital invests in Bulkbox, a tech-enabled platform that provides Africa’s businesses with fast and reliable access to business supplies at competitive prices.<a href="https://latest-api.renewcapital.com/uploads/FINAL_Bulk_Box_Press_Release_4e3bfc5e52.pdf">Download Full Press Release</a>NAIROBI, Kenya, December 19, 2024&nbsp;– BulkBox is addressing critical supply chain challenges faced by small and medium-sized enterprises (SMEs) in Kenya using a convenient and easy-to-navigate online platform. The company provides SMEs with reliable access to a wide range of essential supplies at wholesale prices, empowering them to operate efficiently and profitably.The platform is simplifying procurement for businesses of all types, including restaurants, retailers and offices, providing them with the resources they need to thrive in a competitive marketplace.&nbsp;“BulkBox is helping small businesses get the supplies they need quickly and at fair prices,” said Ahmed Wurie, Co-founder and CEO of BulkBox. “We deliver products the same day and also provide manufacturers with local hubs to make last-mile deliveries easier and more affordable.”BulkBox addresses a key challenge in Kenya, where approximately 400,000 micro, small, and medium enterprises fail within their first year. BulkBox’s comprehensive platform ensures SMEs can access the products they need quickly and affordably while benefiting from tools that enhance operational efficiency.“BulkBox is solving a major challenge for SMEs in Kenya by improving access to affordable and reliable supplies,” said&nbsp;<a href="https://www.linkedin.com/in/lucas381/">Lucas Robinson</a>, consulting principal at Renew Capital. “Their B2B e-commerce platform, combined with capacity building support, equips businesses with the tools they need to grow and succeed.”With a strong value proposition of fast delivery, competitive pricing and capacity-building tools, BulkBox is well-positioned to help SMEs grow and succeed in Kenya’s competitive market.&nbsp;Support to Renew Capital portfolio companies is provided in partnership with Global Affairs Canada.About Bulkbox&nbsp;BulkBox is tackling supply chain challenges for small and medium-sized enterprises (SMEs) in Kenya through a convenient, user-friendly online platform that streamlines access to essential supplies.

Renew Capital, an early-stage venture capital firm in Africa invests in Bulkbox, a tech-enabled platform that provides Africa’s businesses with fast and reliable access to business supplies at competitive prices.

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Press Release: BulkBox - Solving Supply Chain Challenges for Africa’s SMEs

<h1>Press Release: Appload Simplifies Cargo Shipping with Its Online Marketplace</h1>Renew Capital invests in Appload, a solution that is connecting shippers and carriers to streamline logistics across Southern Africa<a href="https://latest-api.renewcapital.com/uploads/FINAL_Appload_Press_Release_009abaa15d.pdf">Download Full Press Release</a>MAPUTO, Mozambique, December 17, 2024&nbsp;– Businesses in Southern Africa are now finding it easier to move goods thanks to Appload, a digital marketplace that connects shippers and carriers. Using Appload, shippers can plan, book and monitor cargo shipments. Licensed carriers are also able to find reliable customers.&nbsp;<figure class="image"><img src="/uploads/Appload_Team_Photo_2c988e0f34.png" alt="Renew Capital, an early-stage venture capital firm in Africa, invests in Appload—photo of the Appload team in Maputo, Mozambique."></figure>The platform reduces the need for middlemen and offers secure booking, payments and third-party cargo insurance. <a href="https://www.linkedin.com/company/apploadafrica/">Appload</a> also tracks each trip, ensuring safe and timely deliveries. Users benefit from a customer review system that allows them to rate both the service providers and clients. To merge business quality and environmental sustainability, Appload allows shippers and transporters to be conscious of their carbon footprints and make responsible choices.&nbsp;“Appload is making shipping of cargo simple and more reliable,” said&nbsp;<a href="https://www.linkedin.com/in/claire-hassoun-45b003a2">Claire Hassoun</a>, founder and CEO of Appload. “Our platform allows businesses and transporters to connect directly. This reduces costs and makes the shipping process seamless. Renew Capital’s support will help us to scale our impact across Mozambique and beyond.”Appload caters to various industries, including agriculture, manufacturing and retail, helping businesses of all sizes move their goods more effectively. The platform's transparent system ensures that both shippers and carriers have access to trustworthy service providers.&nbsp;“Appload is driving a much-needed change in the region's logistics market,” said Licinio Chissano, investment and project manager at Renew Capital. “Appload is helping businesses save time and money by making the process of finding cargo transporters more efficient and transparent.”Renew Capital continues to invest in growth-oriented entrepreneurs who offer scalable solutions to key challenges across Africa.&nbsp;Support to Renew Capital portfolio companies is provided in partnership with Global Affairs Canada and Norad.&nbsp;<h3>Portuguese Version</h3>&nbsp;<h1>Communiqué de Presse: Appload simplica transporte de cargas através da sua plataforma online</h1>Conectando expedidores aos transportadores para optimizar a actividade logística na Africa AustralMaputo, Moçambique, (DATE) – O Transporte de mercadorias ficou agora facilitado para as empresas na África Austral, graças a Appload, uma plataforma digital que liga expedidores e transportadores. Através da Appload, os expedidores podem planejar, reservar e rastreiam a circulação de mercadorias. As operadoras licenciadas também podem conseguir encontrar clientes confiáveis.A plataforma reduz a necessidade de intermediários e oferece reservas, pagamentos e seguro de carga através de terceiros. O Appload também rastreia as viagens, o que garante entregas seguras e oportunas. Os usuários se beneficiam de um sistema de avaliação de clientes, que lhes permite avaliar tanto os prestadores de serviços quanto os clientes. Para combinar a qualidade do serviço e sustentabilidade ambiental, o Appload permite que expedidores e transportadores estejam conscientes das emissões de carbono nas suas viagens, através do “carbon footprint” para que possam fazer escolhas responsáveis.“A Appload está a tornar o transporte de carga mais simples e confiável”, disse Claire Hassoun, fundadora e CEO da Appload. “A nossa plataforma permite que empresas e transportadores se conectem diretamente. Isso reduz custos e optimiza o processo de envio. O investimento da Renew Capital irá ajudar-nos a expandir o nosso impacto em Moçambique e além-fronteiras”A Appload atende a uma ampla variedade de setores, incluindo agricultura, manufatura e retalho, onde ajuda empresas de todos os tamanhos a movimentarem seus produtos de maneira mais eficaz. O sistema transparente da plataforma garante que tanto os expedidores como os transportadores tenham acesso a prestadores de serviços confiáveis“A Appload está impulsior uma mudança crucial no mercado logístico da região”, disse Licínio Chissano, Gestor de investimentos e projetos da Renew Capital. “A Appload ajuda as empresas a economizarem tempo e dinheiro, tornando o processo de localização de transportadores de carga mais eficiente e transparente”A Renew Capital continua a investir em empreendedores orientados para o crescimento, que oferecem soluções escaláveis e ​​para resolver os principais desafios do continente africano.&nbsp;A Renew Capital apoio empresas no seu portfólio em parceria com o Global Affairs Canada.Isenção de responsabilidade: este comunicado de imprensa foi traduzido do inglês. Agradecemos a sua compreensão por eventuais erros ou imperfeições na tradução.

Renew Capital, an early-stage venture capital firm in Africa invests in Appload.