<h1>Mastering “The Flip”: A Guide for African Startups Seeking International Investment</h1>Ready to learn more about mastering the flip? Check out Renew Capital's <a href="https://share.hsforms.com/1Q1zPnuzWTa6M5_FBxrmqUgee4rj">investment readiness training</a> and our quick guide for&nbsp;<a href="http://apply.renewcapital.com/delaware-guide">establishing a Delaware corporation</a>.<figure class="image"><img src="/uploads/580_A0553_79d51b6101.jpg"></figure>My 10-year-old is into gymnastics. She practices “flips” against the wall while I’m trying to get her to eat dinner. How can something so impressive be annoying at the same time? That’s not the kind of flip I want to talk about, though there is likely to be plenty of stamina involved.In 2024,&nbsp;<a href="https://thebigdeal.substack.com/p/2024sum">African startups raised $2.2B</a>, according to Africa: The Big Deal but securing this funding often requires strategic decisions about where to incorporate. Approximately&nbsp;<a href="https://ng.usembassy.gov/u-s-consul-general-will-stevens-keynote-address-at-the-global-tech-africa-conference/">60% of African startups are registered in the United States</a> and for Nigerian startups, that number is 80%.This preference for offshore incorporation is largely driven by investor requirements, legal frameworks and access to global capital.&nbsp;“The flip” is a term commonly used by international investment firms that are focused on Africa. It refers to the process where African companies set up parent companies offshore, with the original African companies becoming&nbsp;<a href="https://www.investopedia.com/terms/w/whollyownedsubsidiary.asp">wholly owned subsidiaries</a>. It’s one of the first questions we ask companies who are seeking an investment from Renew Capital: “Do you have a holding company, and where is it registered?”This isn’t a trivial question. Many investment firms insist that African startups be domiciled outside their primary area of operations—often in Delaware (the U.S.), Mauritius, Europe, etc.&nbsp;Why? There are plenty of reasons: the predictability of legal systems thanks to well-established corporate governance laws, global intellectual property protections, access to robust dispute resolution mechanisms, and yes, sometimes it comes down to tax efficiency. It doesn’t stop there. For investors, there is also&nbsp;<a href="https://stripe.com/en-sg/resources/more/incorporating-in-delaware-explained">comfort in working within familiar legal systems</a>, reduced currency risks, easier exits, IPO potential, fewer foreign exchange controls and frankly, avoiding corruption. These factors make “the flip” not just a preference but, for many investors, a de facto requirement.<figure class="image"><img src="/uploads/580_A0787_9d89da464c.jpg"></figure>Yet, for something so common, there’s surprisingly little data on how easy or difficult it is to flip a company.&nbsp;Here’s the reality: Flipping is one of the most critical factors in attracting more startup funding to African countries, yet it’s often overlooked. Most policymakers I speak to do not have an idea of how long it takes to flip a company in their country.I get it. Many African governments don’t like that this has become a de facto investment requirement. But it has. Almost every Venture Capital and Private Equity firm in the world will insist on it. Does this overlook the long-term value of supporting local ecosystems? That’s certainly a discussion worth having. Some organizations are working to make African jurisdictions more investor-friendly by improving legal frameworks, transparency and market infrastructure. At Renew Capital, an early-stage investment firm in Africa, we count ourselves in that group. Building entrepreneurial ecosystems is a worthy effort but it takes years—and it will take even longer to convince the global market that these changes are going to stick. By 2030, sub-Saharan Africa will account for half of new labor force entrants, requiring up to 15 million new jobs annually (<a href="https://www.imf.org/en/Blogs/Articles/2024/11/12/the-clock-is-ticking-on-sub-saharan-africas-urgent-job-creation-challenge">IMF</a>). Fostering private sector firm growth today is a major requirement for the region.So in the meantime, the legal paths between many African countries and Delaware (and Mauritius, etc.) will continue to be well-trodden.At Renew Capital, we have been conducting research across several countries to determine how long this process takes.&nbsp;Step one is usually to register a new holding company (in the form of a corporation) in Delaware (as an example). It’s pretty fast and easy and takes about a week. It (of course) will cost you if you want a lawyer to help with the process. Mauritius is about the same—a lot more regulatory and compliance requirements, but tax advantages. No need to even visit!&nbsp;Once that’s done, founders need to ensure that the exchange of shares by the shareholders in the local operating company for shares in the offshore holding company is completed. This is finalized by filing share transfers in the relevant African countries of operation. In practice, our research suggests it can take anywhere between 14 days (e.g., Kenya and Morocco) and up to 18 months (e.g., Ethiopia) because this is generally a pre-condition to investment, this is probably the most significant barrier to increased investment in some countries.Is “the flip” right for every company? Definitely not. But, if you’re looking for&nbsp;<a href="https://www.redfernlegal.com/understanding-the-flip-up-moving-your-headquarters-hq-process/">venture capital investment from an international investor</a>, then you’ll almost certainly need to do it at some point.If you’re serious about scaling your startup and mastering every step of the flip,”&nbsp;<a href="https://share.hsforms.com/1Q1zPnuzWTa6M5_FBxrmqUgee4rj">sign up now</a> to get access to both Investment Readiness 101 (best for beginners) and Closing the Deal (for those actively pursuing an investment). The training covers all the important details from legal due diligence to how to get your valuation right. Also, check out the Renew Capital guide for&nbsp;<a href="http://apply.renewcapital.com/delaware-guide">establishing a Delaware corporation</a>.&nbsp; Note: While Renew Capital’s guide provides helpful insights into establishing a Delaware corporation, it is essential to remember that the information presented here is for general informational purposes only and should not be considered legal advice. We strongly recommend that you consult with your own legal counsel or a qualified professional to determine what jurisdiction and legal entity structure is right for your company.

Check out Renew Capital's investment readiness training and our quick guide for establishing a Delaware corporation.

Image: Renew Capital mentor talking with African startups and partners

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 Mastering “The Flip”: A Guide for African Startups Seeking International Investment

<h1>Press Release: No Money? No Problem — Tendo Brings Risk-Free Reselling to Everyday Entrepreneurs</h1>Renew Capital invests in Tendo to empower individuals to launch ecommerce businesses through social media with no upfront capital investment in inventory.<a href="https://latest-api.renewcapital.com/uploads/FINAL_Tendo_Press_Release_fba8ce2000.pdf">Download the full press release</a>ACCRA, Ghana, April 29, 2025 –&nbsp;With Tendo, anyone with a social media account can become an online reseller in just a few clicks. Through its innovative platform, <a href="https://tendo.app/">Tendo</a> connects wholesalers to independent resellers who can earn by adding profit margins to listed products and selling them through their social networks.<figure class="image"><img src="/uploads/Tendo_PR_Photo_0758f28b88.jpg"></figure>By cutting out the usual headaches like finding suppliers, managing stock or paying upfront for inventory, Tendo clears the roadblocks so anyone can start selling and earning in no time.Tendo gives resellers across Africa access to thousands of products at wholesale prices, allowing them to set their own profit margins and directly promote listings on social platforms, including Facebook and WhatsApp. When a customer places an order, Tendo handles the financial transaction and delivery and sends the reseller their profit.&nbsp;“Our mission is to create opportunities for individuals to build businesses with minimal risk,” said<a href="https://www.linkedin.com/in/felix-manford/">&nbsp;Felix Manford</a>, co-founder and CEO of Tendo. “By providing a seamless platform that takes care of inventory and delivery, we empower anyone to start earning online from home.”With thousands of products already listed and a growing network of resellers, Tendo is creating economic opportunities for everyday Africans while helping wholesalers expand their reach.“Tendo is transforming the way people approach entrepreneurship,” said Nicholas Clerk, investment ecosystem development manager at Renew Capital. “Their platform removes traditional barriers to entry, enabling individuals to earn income and build businesses using just their smartphones.”With Renew Capital’s investment, Tendo plans to expand its platform, onboard more resellers and empower individuals across Africa to earn and grow a business using the power of their smartphone.Support to Renew Capital portfolio companies is provided in partnership with Global Affairs Canada and Norad. &nbsp;

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

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Press Release: No Money? No Problem — Tendo Brings Risk-Free Reselling to Everyday Entrepreneurs

<h1>Renew Capital Legal Brief - March 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_b1a20116be.png"></figure><h2>Egypt</h2>Financial Regulatory Authority (FRA) reiterates licensing requirements for insurance companies:The FRA has announced updated licensing guidelines for insurance companies. Current and prospective insurers must now be joint stock companies, meet paid-up share capital requirements and have qualified board members. Moreover, offering both life and property insurance services by the same entity is prohibited, except for&nbsp;microinsurance companies or&nbsp;HMOs. Existing firms have five months to comply with these new standards.Why it matters: Licensed insurance companies should conduct internal reviews to ensure compliance with the licensing requirements or face the risk of penalties or license revocation.<h2>Ghana</h2>2025 Budget Statement and Economic Policy of the Government of Ghana:The Government of Ghana, through the Minister for Finance, has presented the Budget Statement and Economic Policy for the year 2025. Key tax proposals include the abolition of several taxes, such as the withholding tax on lottery winnings and the electronic transfer levy, as well as exempting individuals earning the minimum wage or less from income tax. The proposed VAT reforms aim to eliminate the COVID-19 levy, reduce the effective VAT rate and raise the registration threshold to exempt small businesses, with implementation set for 2025. Additionally, the budget outlines plans to restructure and consolidate existing levies, introduce road tolls and establish a new legal framework for non-tax revenue collection.Why it matters: This is important because the changes outlined in Ghana's 2025 Budget directly impact the country’s economic environment, businesses and individuals. This could stimulate economic growth, improve disposable income for workers and promote entrepreneurship.<h2>Kenya</h2>Potential increase in banking license fees:The Central Bank of Kenya (CBK) is taking decisive action to modernize the licensing fee methodology for banks by linking license fees directly to the gross annual revenue of each institution. This new approach is a significant shift from the current system, which bases fees on the number of bank branches. The CBK has released draft banking (fees) regulations for public comment and upon approval, these regulations will require every bank to contribute a percentage of its gross annual revenue. The licensing fee will be set at an initial rate of 0.6% with a gradual increase to 1% by 2027.Why it matters:&nbsp;Increasing license fees for banks will undoubtedly create a ripple effect that impacts both customers and third-party service providers, leading to higher fees for banking services.<h2>Morocco</h2>Morocco's National Agency for Telecommunications Regulation (NATR) issues new labeling rules:The NATR has directed that all telecommunication devices (including phones, laptops, smartwatches and routers) be labeled with their Specific Absorption Rate (SAR) values. The SAR values should be displayed on the products, user manuals, packaging, or electronic labels. This new rule will become enforceable on May 1, 2025 and any contraventions will result in fines for manufacturers.Why it&nbsp;matters: Proper labeling of telecommunication devices will enhance consumer protection and ensure greater transparency in the Moroccan telecommunications sector.&nbsp;&nbsp;<h2>Nigeria</h2>Nigeria's Senate passes Investment and Securities Bill:The Nigerian Senate has successfully passed the long-awaited bill, which is now pending assent from the country’s President. This landmark legislation is set to modernize and strengthen the statutory framework for Nigeria's capital markets. Among the significant changes is the official recognition of virtual assets as securities.Why it matters: The bill, once approved, will significantly strengthen investor protection, align with the latest developments in the capital markets and lead to more efficient legislation.<h2>Rwanda</h2>Rwanda issues virtual assets bill:On March 6, 2025, the Rwandan Capital Markets Authority (CMA) unveiled a bill for the regulation of virtual asset operations in Rwanda. The bill aims to foster innovation in the virtual asset sector while also preventing and mitigating associated risks. The CMA will be the primary regulatory and licensing authority but will consult and collaborate with the National Bank of Rwanda to safeguard the integrity of Rwanda’s financial system.Why it matters: Once passed, this bill will advance financial stability in Rwanda and boost investors’ confidence in virtual assets’ businesses and activities in Rwanda.&nbsp;<h2>South Africa</h2>The South African Reserve Bank (SARB) redefines bank activities&nbsp;The SARB intends to exempt a certain payment activity from the scope of the “business of the bank”. This activity is the pooling of funds into a store of value or payment account by a non-bank for conducting payment activities. Therefore, non-bank entities that carry out such activities can operate without a banking license, subject to meeting stipulated conditions. A draft notice, to this effect, has been issued by the SARB for public comment.Why it matters: The exemption will ease the regulatory burden of payment service providers and other stakeholders that store funds to facilitate their payment services.&nbsp;<h2>Uganda</h2>Bank of Uganda is set to regulate mortgage refinancing institutions:On March 12, the Ugandan Parliament was presented with a landmark bill to regulate the establishment of mortgage refinancing institutions for the first time. Once passed, this bill will empower the Bank of Uganda to issue licenses to mortgage refinanciers and establish a robust administrative framework for mortgage refinancing operations across the country.&nbsp;Why it matters: Establishing mortgage refinanciers will increase access to finance for primary mortgage financing institutions and facilitate affordable housing in Uganda in the long term.&nbsp;<h2>Zambia</h2>Zambia’s Data Protection Commission (DPC) gets set to enforce data protection legislation:The DPC is ready to mete out fines and prosecute entities operating in contravention of Zambia’s Data Protection Act of 2021. Data processors and controllers are therefore encouraged to complete the registration process and implement robust security measures. The DPC intends to commence the enforcement measures in March 2025.Why it matters: Organizations that handle personal data face the risk of fines or legal action if they fail to comply with data protection legislation.<h2>Cross-border</h2>Ghana and Rwanda collaborate on a license passport framework:Both countries have agreed to a mutual framework that allows regulated fintech companies from one country to operate in the other with minimal additional regulatory requirements.&nbsp;Why it matters: This initiative enables Ghanaian and Rwandan fintech companies to expand their services with minimal regulatory barriers, driving significant innovation and fostering economic growth in both countries. &nbsp;

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 - March 2025

<h1>Press Release: NjiaPay Simplifies Payments for African Merchants with a Single Integration Platform&nbsp;</h1>Renew Capital invests in NjiaPay to enhance payment efficiency and drive business growth across Africa.<a href="https://latest-api.renewcapital.com/uploads/FINAL_Njia_Pay_Press_Release_45835b21a4.pdf">Download the full press release</a>&nbsp;JOHANNESBURG, South Africa, March 25, 2025 – NjiaPay, a payment service provider (PSP), is changing the payment landscape for South African businesses. NjiaPay offers a single integration for merchants, eliminating the need to manage multiple integrations. With features like intelligent routing, built-in redundancy and centralized reconciliation and data management,&nbsp;<a href="https://www.linkedin.com/company/njiapay/">NjiaPay</a> ensures a seamless payment experience and enhanced payment success rates.<figure class="image"><img src="/uploads/Njia_Pay_Team_with_Logo_c46f598dc8.jpg" alt="NjiaPay founders, a payment service provider (PSP), is changing the payment landscape for South African businesses."></figure>NjiaPay’s intelligent routing leverages real-time PSP performance data and AI to select the highest-performing and most affordable payment provider and method for each transaction, driving higher conversion rates and minimizing disruptions. NjiaPay then simplifies month-end reconciliations by consolidating data into a single, comprehensive and actionable report providing a unified source of truth.“Our mission is to empower African businesses to thrive in the digital age by simplifying the complexities of payment processing,” said&nbsp;<a href="https://www.linkedin.com/in/jonatan-allback-8791361b/">Jonatan Allback</a>, co-founder and CEO of NjiaPay. “With NjiaPay, merchants can focus on growing their businesses while we handle the payment complexities.”NjiaPay’s merchant portal provides full control over payment data, offering insightful analytics and streamlining operations through a unified interface. By addressing key challenges in Africa’s payments landscape, NjiaPay enables businesses to optimize their financial performance and operational efficiency.“NjiaPay is tackling a major obstacle for lean teams that do not have or cannot afford dedicated payment teams to navigate payment complexity,” said&nbsp;<a href="https://www.linkedin.com/in/melbourne-nyamadzawo-b68431131/">Melbourne Nyamadzawo</a>, investment analyst at Renew Capital. “By unifying integrations and optimizing payment infrastructure, NjiaPay empowers merchants to navigate the digital economy with confidence. We are proud to support NjiaPay as they scale their platform across the continent.”With Renew Capital’s investment, NjiaPay plans to expand its platform, enhance its intelligent routing capabilities and grow its presence across Africa.About NjiaPayNjiaPay is a payment service provider platform transforming the payment landscape for African businesses. Visit&nbsp;<a href="http://www.njiapay.com">www.njiapay.com</a> for more information.

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

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Press Release: NjiaPay Simplifies Payments for African Merchants with a Single Integration Platform 

<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.

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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.