It has been nearly five years since the Senegalese parliament passed Law №2020/01 — the much-lauded “Startup Act” — promising a golden era for the nation’s tech entrepreneurs. For years, however, the law remained largely theoretical, a “ghost ship” of legislation with attractive promises but no mechanism to deliver them. At some point,
On Thursday in Dakar, the government signaled that the waiting period is over.
The Ministry of Communication, Telecommunications, and Digital Affairs (MCTDEN) officially launched the “Startup Ecosystem” program, a digital platform designed to be the operational backbone of the Startup Act. The “Startup Ecosystem” program represents the third major push to operationalise the Startup Act since President Macky Sall ratified it in 2021. The law itself was passed by the National Assembly in 2020 after prolonged deliberation. Under the banner of the new administration’s “New Deal for Technology,” the launch promises to mark a critical pivot from legislative intent to administrative reality.
“We are giving a face, an organization, and a compass to an entire ecosystem,” said Alioune Sall, the Minister of Communication, Telecommunications, and Digital Affairs, speaking at the launch ceremony.
The question for investors and founders, however, remains: Will this digital reboot finally unlock the growth that was promised in 2020?
The “Paper Tiger” Becomes Digital
For years, the primary criticism of African Startup Acts — from Tunisia to Nigeria — has been the gap between ratification and implementation. Senegal was no exception. While the law was ratified in 2021, the bureaucratic machinery required to actually give a startup its tax breaks was missing.
The new “Startup Ecosystem” platform aims to solve this by digitizing the CEAC Label (Commission d’Évaluation, d’Appui et de Coordination). This label is the golden ticket; without it, the law’s benefits are inaccessible.
The platform promises to be a “one-stop shop” for three critical functions:
- Accreditation: Streamlining the labeling process for companies under 8 years old.
- Transparency: Providing a clear, trackable pipeline for investors to see which startups are vetted.
- Management: Coordinating between incubators, the state, and financial partners.
“The State is no longer content with simply regulating,” said Abdoullah Cissé, a member of the drafting committee, characterizing the shift as a move toward a “strategic partnership” rather than bureaucratic oversight.
What’s on the Table?
For founders who successfully navigate the new platform and obtain the CEAC Label, the statutory benefits — codified years ago but now theoretically accessible — are significant.
1. Fiscal Breathing Room The headline benefit is a three-year tax exemption. According to the Ministry of Finance and Budget, this effectively ends the standard tax regime for labeled startups, replacing it with a preferential window designed to lower burn rates during the “valley of death” early growth phase.
2. A Slice of the Public Pie Perhaps the most aggressive provision is the access to public procurement (government contracts), a sector usually dominated by legacy incumbents.
- The 5% Edge: Labeled startups receive a 5% preference margin in public tenders.
- The 30% Mandate: Larger companies bidding for public contracts can receive a 5% preference margin if they subcontract at least 30% of the work to labeled startups.
3. Ownership Protections The law remains protectionist in its definition of a “Senegalese Startup.” To qualify, a company must be at least one-third (33%) owned by Senegalese nationals or residents. While this ensures local equity retention, it forces foreign venture builders to carefully structure their cap tables if they want the Act’s benefits.
Will It Work This Time?
The launch has been welcomed by international partners, including Jean-Marc Pisani, the EU Ambassador to Senegal, who sees it as a way to “consolidate cooperation.” However, skepticism in the local ecosystem is natural.
The delay in operationalization means Senegal has lost first-mover advantage. The success of this “restart” hinges not on the software launched on Thursday, but on the Eligibility and Allocation Commission (CEAC) behind it.
If the CEAC becomes a bottleneck of bureaucratic approval, the platform will be little more than a digital waiting room. If, however, it functions as the “compass” Minister Sall describes, it could finally unlock the capital and support Senegal’s founders have been waiting for.
The pattern is becoming familiar across Africa. Countries launch startup acts with considerable fanfare, only to struggle with execution. Senegal’s multiple restart attempts underscore this difficulty.
The 2021 ratification gave the law legal force, but practical implementation stalled.
Abdoullah Cissé, who served on the law’s drafting committee, positioned the legislation as transformative. “Innovation is no longer a peripheral luxury, but is becoming a pillar of sovereignty,” he said. The government, he added, was shifting from regulator to partner.
Yet the gap between stated ambition and delivered support remains the critical test. Entrepreneurs need functioning systems for certification, tangible tax relief, and actual access to procurement opportunities — not additional platforms promising coordination.
The Data: Who Qualifies?
To register on the new platform, startups must meet the following criteria:
- Age: Registered for less than 8 years.
- Model: Strong growth potential based on a disruptive economic model/technology.
- Origin: Created on Senegalese territory.
- Ownership: At least 1/3 owned by Senegalese nationals/residents OR 50% owned by Senegalese diaspora.
The bottom line
Whether Senegal’s third attempt succeeds will depend on mundane but essential factors: whether the online platform functions reliably, whether startups actually receive promised tax relief, whether procurement officials respect preference margins, and whether funding mechanisms deliver capital to registered companies.
The government has positioned this as part of its “New Deal for Technology,” connecting startup support to broader goals of digital sovereignty and territorial development under the “Digital Senegal 2025” strategy.
For now, the launch represents renewed political commitment. Converting that commitment into operational reality — and avoiding the fate of Africa’s other stalled startup acts — will require sustained administrative follow-through, adequate resourcing, and genuine institutional coordination.
Senegalese entrepreneurs have heard the promises before. They’re waiting to see if this restart delivers differently.