From December 2 to 12, 2024, the Beninese Ministry of Digitalization launched a call for applications for Beninese MSMEs wishing to obtain the "startup label." The results were recently announced.

Beninese authorities on Friday announced the 15 micro, small, and medium-sized enterprises (MSMEs) awarded the "start-up label" for the next three years. These companies were selected from a pool of 95 applicants operating in sectors including health, tourism, and technology.

"After verifying the eligibility and completeness of the applications by the permanent secretariat of the technical labeling committee, twenty (20) applications were shortlisted and subjected to an evaluation process conducted by the committee [...]. At the end of the evaluation process, fifteen (15) micro, small, and medium-sized enterprises were granted the start-up label for the next three (03) years," stated the Beninese Ministry of Digitalization.

This selection follows a call for applications that ran from December 2 to 12, 2024, for Beninese MSMEs seeking the "startup label." The awarding of this label is part of the implementation of Decree No. 2023-095 dated March 22, 2023. Authorities intend to provide specific support to these labeled companies to encourage their growth in a favorable environment.

Under Benin's current general tax code, these labeled companies "benefit from a corporate tax exemption and exemption from employer salary contributions for the first two (2) years of activity, as well as a 50% reduction on the same taxes for the third year." The aim is to stimulate innovation, create jobs, and encourage investment in Beninese start-ups.

According to Briter Bridge's "Africa 2023 Investment Report Crisis or Adjustment," African start-ups attracted over $22 billion between 2013 and 2023. In 2024, they secured $3.2 billion, according to Partech Africa data. In the medium term, the "start-up label" initiative could foster the development of a competitive pool of start-ups at the regional and continental levels, while enhancing Benin's attractiveness as an innovation hub in West Africa. Senegal, Rwanda, and Tunisia have previously implemented similar measures to bolster their start-up ecosystems.

Adoni Conrad Quenum