The Startup Act and the Technological New Deal in Senegal

Introduction

On Monday February 24, 2025, the Senegalese government introduced the new digital strategy, entitled “New Deal Technologique”.

This initiative places digital technology at the heart of Senegal's economic and social development, as well as its technological sovereignty. The strategy, part of the “Senegal 2050” National Transformation Agenda, aims to make the country a leader in Africa's digital economy.

To this end, technological innovation and entrepreneurship are seen as key drivers of competitiveness in Senegal's digital economy.

In 2020, Senegal took the initiative of introducing a legal framework for startups, known as the “Start-up Act”. This aims to structure the entrepreneurial ecosystem by offering start-ups a suitable legal, fiscal and financial framework.

Thus, the key issue we wish to explore in this brief note is how the Start-Up Act constitutes an essential lever for the Technological New Deal.

To provide an appropriate explanation, we will analyze the Start-Up Act as an incentive legal framework (I), before examining how the Start-Up Act fits into this dynamic and reinforces its ambitions (II).

I- The Startup Act: an incentive-based legal framework

A- Startup Act definition

The Startup Act is a law adopted in 2020 (law n°2020-01 of January 6, 2020, relating to the creation and promotion of the startup in Senegal, catalyzing the startup sector. Its purpose is to set up a specific incentive framework to promote the development and growth of startups in Senegal. It recognizes start-up status and grants administrative and tax advantages. It has multiple objectives:

Encourage entrepreneurship and innovation.

Facilitate access to financing for start-ups.

Reduce bureaucratic barriers to the creation and growth of innovative companies.

By establishing a clear legal framework, the Startup Act encourages the growth of a dynamic and competitive entrepreneurial fabric.

B- Benefits of the Startup Act

The Startup Act is based on several concrete measures designed to stimulate the development and growth of startups in the country, including:

Tax exemption: Young startups benefit from a tax exemption for the first three years of their existence.

Administrative facilities: The Startup Act simplifies administrative procedures linked to the creation and management of startups, enabling them to register with approved support structures, as stipulated in Article 7 of the Act. This allows entrepreneurs to concentrate more on developing their ideas and activities.

State support: a registered startup can receive state support for company incorporation, intellectual property protection, incubator support and more.

An official label for start-ups: This label is awarded to companies meeting specific criteria (innovation, growth potential, etc.), giving them access to exclusive benefits.

II- The Startup Act, pillar of the Technological New Deal

A- Synergy to boost Innovation

The Startup Act plays a key role in the success of the Technological New Deal by facilitating the growth of companies able to develop innovative solutions. Startups benefit from the Startup Act framework to create technologies that fit with the New Deal's objectives.

Examples:

Fintech solutions for digital banking.

Mobile applications for health and education services.

E-commerce platforms to stimulate the digital economy.

B- Competitiveness and international challenge

Through these initiatives, Senegal aims to become a technology hub in West Africa. Improving the business climate and supporting start-ups are helping to attract:

Foreign investment in the digital sector.

Partnerships with technology giants to accelerate innovation.

Local and international talent, by offering them attractive professional opportunities.

Conclusion

The Startup Act and the Technological New Deal are two complementary initiatives aimed at making Senegal a major actor in Africa's digital economy. While the Technological New Deal offers a strategic vision for modernizing the economy, the Start-Up Act creates a framework that promotes innovative entrepreneurship. The major challenge lies in the effective implementation of these policies to ensure an inclusive and sustainable digital transformation.