On March 12, 2025, Ivory Coast’s government announced the creation of a Digital Startup Labeling Committee, a move framed as a significant step in ensuring digital trust and fostering a secure ecosystem for tech startups. The decree, adopted by the Council of Ministers, outlines the responsibilities, organization, and operational framework of this committee, all in alignment with the country’s Startup Act, officially enacted in November 2023. But if past experiences in Africa’s Startup Act nations are any indication, startup founders may want to temper their enthusiasm.

The Digital Startup Label aims to provide a structured framework for young companies, offering benefits such as tax incentives, access to public procurement, financial support, and regulatory sandboxes. Yet, this well-intentioned initiative raises an old question: Does a government-issued label truly translate into meaningful support for startups?

A Familiar Roadmap with Few Success Stories

Côte d’Ivoire is not the first African country to introduce a Startup Act and a corresponding labeling system. Tunisia, the pioneer of such legislation in 2018, initially seemed to set a promising precedent. The Anava Fund of Funds was established to invest in labeled startups, an arrangement that should have fueled the growth of the country’s tech ecosystem. However, reality intruded. Like any institutional investor, the fund’s managers faced a fundamental obligation: maximizing returns for their limited partners. Investing in labeled startups for the sake of their labels? That was never part of the mandate. Consequently, the startups that benefited most were those that were already investment-worthy, label or not. The label, in practical terms, was just an additional certificate for their files.

Meanwhile, in Nigeria and Senegal — two countries that enthusiastically passed Startup Acts — the tangible impact remains elusive. The policy announcements were met with much fanfare, but years later, little has materialized in terms of real, structural benefits for startups. The struggle between ambitious government rhetoric and the harsh realities of implementation continues.

Côte d’Ivoire’s Labeling System: A Closer Look

The Ivorian labeling system is structured similarly to its predecessors. A startup seeking the “Label Startup Numérique” must meet a range of criteria, including legal registration, majority Ivorian ownership, demonstrable innovation, growth potential, and socioeconomic impact. For those in early development stages, there’s even a “pre-label” option, valid for one year and renewable once, allowing startups to access limited support while maturing.

The benefits for labeled startups include tax exemptions, preferential treatment in public procurement, access to financial assistance, and regulatory flexibility through sandboxes. However, these perks come with obligations. Startups must comply with regulations, submit regular progress reports, and maintain transparency. Non-compliance could lead to sanctions, including label revocation and financial penalties.

Will This Move the Needle?

The fundamental issue with startup labeling remains: Is the label itself a game-changer, or just another bureaucratic hurdle? The real test will be whether Côte d’Ivoire’s policy can translate into tangible advantages for startups. If investors and procurement officers view labeled startups as inherently more credible, the program could gain traction. But if it turns out, as seen elsewhere, that the most successful startups would have thrived regardless, then the label risks becoming yet another ceremonial distinction — useful for government press releases but inconsequential for business growth.

For now, Côte d’Ivoire’s tech ecosystem watches and waits, hopeful yet skeptical. If history is any guide, founders would do well to continue focusing on the fundamentals: building great products, attracting customers, and securing funding — label or no label.