Implemented since 2018, the Startup Act has played a key role in promoting innovation in Tunisia. By offering attractive tax incentives to startups and investors, it has encouraged the creation of new businesses and stimulated entrepreneurship across the country. Moreover, the established financing and financial support mechanisms have enabled startups to thrive in key sectors such as technology, financial services, and renewable energy.
Additionally, the Startup Act has contributed to strengthening the entrepreneurial ecosystem by facilitating market access for startups, streamlining administrative procedures, and promoting collaboration between the public and private sectors. Initiatives aimed at enhancing entrepreneurial skills and encouraging open innovation have also had a positive impact on the startup community in Tunisia.
"Spectacular" progress
By offering attractive tax incentives to startups and investors, it has encouraged the creation of new businesses and stimulated entrepreneurship across the country@GSMA
Since then, while updates have been made, with legislation continuing to evolve according to needs, as it enters its fifth year, the Startup Act has shown a mixed track record: with notable successes recorded, it still faces several challenges. As highlighted by Smart Capital, the management company responsible for implementing Startup Tunisia, which "aims to make Tunisia a startup country at the crossroads of the Mediterranean, the MENA region, and Africa." While Smart Capital acknowledges the "spectacular" progress brought about by the Startup Act in the Tunisian tech ecosystem, it also adds nuance: "Startup Act 1.0 was important and necessary to create a new dynamic, but not sufficient to ensure its sustainability."
The sluggishness of administrative processes, the lack of early-stage funding for startups, and deficiencies in training and support remain major obstacles to the growth of the entrepreneurial ecosystem. Additionally, the need to strengthen intellectual property protection and promote female entrepreneurship remains a priority to ensure the sustainability and inclusivity of economic growth.
Startup Act 2.0 in the works
However, these challenges also present opportunities for improvement. By investing in entrepreneurial education, developing mentoring and coaching programs, and strengthening ties between universities, businesses, and government agencies, Tunisia can create an even more conducive environment for innovation and startup success. These are challenges to which the Startup Act 2.0 must provide answers. The enactment of the new law is expected in 2024.
In the meantime, the Tunisian Startup Act has inspired others: taken as a reference by the African Union, it has inspired similar initiatives in Algeria, Senegal, and Rwanda.
