Innovation in Francophone Sub-Saharan Africa: Progress, but Not at the Same Pace
In Francophone Sub-Saharan Africa, innovation is advancing, but not at the same pace everywhere. According to the EY 2025 Observatory, 59% of entrepreneurs believe that taxation remains the main obstacle to the creation and growth of startups. This figure speaks volumes about the challenges the region still needs to overcome.
The Legal Framework: A Springboard or an Obstacle Course?
It all starts with the legal framework. From one country to another, the ecosystem surrounding startups can resemble a springboard or an obstacle course. In the most advanced countries - Senegal, Djibouti, Benin, and Burkina Faso - reforms are multiplying to support innovation. For example, in Djibouti, the creation of the Djibouti International Free Trade Zone, financed with over $370 million, illustrates the willingness to attract investors and talent with a flexible fiscal and regulatory environment.
A Nuanced Dynamic
Elsewhere, the dynamic is more nuanced. In countries like Côte d'Ivoire, Gabon, or Togo, the legal framework is progressing but sometimes remains difficult to apply. Startups must navigate more structured rules, but they are still too rigid to innovate quickly.
Countries in Transition
Then there are countries in transition - Madagascar, Cameroon, Burundi, Mauritania, and Chad - where reforms are advancing, but slowly, hindered by a heavy bureaucracy. Finally, in the most fragile environments - Niger, DRC, CAR, Congo, and Comoros - administrative slowness and governance challenges make the ecosystem very unpredictable for startups.
Three Major Obstacles to Innovation
The study clearly identifies the brakes that slow down the commercialization of innovative solutions:
- 59%: Unfavorable Taxation - Young companies are often taxed like large ones. In the DRC or Cameroon, corporate tax exceeds 30%, a significant burden for start-ups.
- 57%: Administrative Complexity and Low Digitalization - Creating a company can take over 20 days, compared to an average of 5 days worldwide. As a result, launching a business is costly, investors are hesitant, and entrepreneurs waste precious time.
- 42%: Significant Territorial Inequalities - In several countries, more than 70% of aid and programs are concentrated in the capitals. Entrepreneurs in rural areas are the forgotten ones of innovation.
Senegal: A Model with its Startup Act
Among the success stories, Senegal stands out as a pioneer. Its Startup Act, adopted in 2019, has transformed the ecosystem in depth. Some key points:
- Tax exemptions and charges for 3 years for labeled startups
- Simplified customs regime for importing equipment
- Structured institutional support
- Over 400 startups funded for more than 60 billion FCFA
- $36 million raised in 2024 by Senegalese startups
As a result, Senegal is ranked 8th in Africa in terms of fundraising volume, and its ecosystem is gaining international visibility.
