Newsroom > Blog
Browse more
The latest changes in Africa's regulatory environment
With 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.
Egypt
Strengthening waste management: The UN Development Programme (UNDP) awarded a $6.3M grant to Egypt’s Ministry of Health to build a hazardous medical waste treatment facility in Suez.
Why it matters: The facility aims to cut harmful emissions and improve the safety of hazardous waste disposal, addressing critical public health and environmental concerns.
Ethiopia
Banking now open to foreigners:
Ethiopia's parliament passed legislation on December 17, 2024 which allows foreign banks to establish subsidiaries, open branches or representative offices and buy shares in local banks. It is understood that by the law, ownership of local banks by foreign strategic investors will be capped at 40% (Reuters).
Why it matters: This aligns with IMF-backed reforms, including floating the birr and adopting interest rate-based monetary policies as Ethiopia seeks to attract higher levels of foreign investment.
New securities guidelines:
The Ethiopian Capital Markets Authority (ECMA) now requires issuers of equity or debt securities to register and undergo verification.
The Ethiopian Capital Markets Authority (ECMA) now requires issuers of equity or debt securities to register and undergo verification.
Why it matters: This oversees Ethiopia’s nascent capital markets, promoting investor confidence.
QR code standards for PSPs:
Starting December 1, 2024, all payment service providers (PSPs) offering QR code payments must comply with the National Bank of Ethiopia's (NBE) interoperability standards.
Starting December 1, 2024, all payment service providers (PSPs) offering QR code payments must comply with the National Bank of Ethiopia's (NBE) interoperability standards.
Why it matters: This initiative supports seamless, standardized digital payments, boosting financial inclusion and consumer convenience.
Mandatory national IDs for bank accounts:
Banks must now require National (Fayda) IDs from all customers. The rollout begins in Addis Ababa and will expand in phases.
Banks must now require National (Fayda) IDs from all customers. The rollout begins in Addis Ababa and will expand in phases.
Why it matters: This initiative could strengthen financial security and compliance but may create short-term access challenges for customers without IDs.
Ghana
Higher risk standards for banks:
The Bank of Ghana issued directives on climate-related financial risks and outsourcing risk exposure. Compliance is required by 2025.
The Bank of Ghana issued directives on climate-related financial risks and outsourcing risk exposure. Compliance is required by 2025.
Why it matters: These measures push financial institutions to manage risks tied to climate change and third-party operations, improving stability in the sector.
Kenya
Expanded regulation by CBK:
A proposed bill would require credit guarantee firms, asset financiers and "buy now, pay later" service providers to register with the Central Bank of Kenya (CBK). Existing firms will get a timeline to comply once the bill is passed.
A proposed bill would require credit guarantee firms, asset financiers and "buy now, pay later" service providers to register with the Central Bank of Kenya (CBK). Existing firms will get a timeline to comply once the bill is passed.
Why it matters: This will bring these emerging financial services under formal regulation, reducing consumer risks.
Public procurement changes:
Only local firms will be eligible for government contracts under KES1B (~$7.72M). Foreign firms must partner with local companies for larger contracts.
Only local firms will be eligible for government contracts under KES1B (~$7.72M). Foreign firms must partner with local companies for larger contracts.
Why it matters: The policy aims to boost local business participation in government projects, strengthening Kenya’s domestic economy.
Mozambique
Trade agreement with Malawi:
Mozambique and Malawi agreed to exempt up to 47 products from customs duties for cross-border imports and exports.
Mozambique and Malawi agreed to exempt up to 47 products from customs duties for cross-border imports and exports.
Why it matters: The deal simplifies trade between the two countries, potentially lowering costs for businesses and consumers.
Nigeria
SEC targets short-term debt:
The Securities and Exchange Commission (SEC) plans to regulate debt instruments with maturities under nine months. Draft amendments to existing rules are under review.
The Securities and Exchange Commission (SEC) plans to regulate debt instruments with maturities under nine months. Draft amendments to existing rules are under review.
Why it matters: This move closes a regulatory gap, providing greater investor protection and market transparency.
Proposed tax reforms:
The Nigerian Senate is considering bills that could reshape the tax landscape. Proposals include:
The Nigerian Senate is considering bills that could reshape the tax landscape. Proposals include:
- Exemptions for small businesses and minimum wage earners.
- Reduced taxes for workers.
- VAT exemptions on rent, public transport and renewable energy.
Why it matters: If passed, these reforms could ease the tax burden on individuals and businesses, encouraging economic growth and sustainability.
South Africa
Small businesses gain relief:
Starting January 1, 2025, businesses with fewer than 50 employees will no longer need to submit employment equity reports or implement equity plans.
Starting January 1, 2025, businesses with fewer than 50 employees will no longer need to submit employment equity reports or implement equity plans.
Why it matters: This change reduces compliance costs for small businesses, freeing resources for growth and operations.
Tanzania
Venture capital regulation:
Tanzania's Capital Markets and Securities Authority (CMSA) is finalizing rules for licensing venture capital and private equity firms. Registration with the CMSA will be mandatory.
Tanzania's Capital Markets and Securities Authority (CMSA) is finalizing rules for licensing venture capital and private equity firms. Registration with the CMSA will be mandatory.
Why it matters: These regulations aim to promote transparency and accountability, encouraging investment in Tanzania’s growing private sector.
Zambia
Carbon trading regulation:
Zambia’s National Assembly is reviewing the Green Economy and Climate Change Bill. The proposed law would require carbon traders to get authorization before operating.
Zambia’s National Assembly is reviewing the Green Economy and Climate Change Bill. The proposed law would require carbon traders to get authorization before operating.
Why it matters: This would formalize carbon trading, helping Zambia attract green investment and align with global sustainability goals.
Visit our blog to learn more about some of Africa’s startup ecosystems or contact us at renew@renewcapital.com if you need to get up to speed on any of these ecosystems!
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.
