Experts assess ways of boosting start-up ecosystem.

Discussions during the session of the Operational Working Group was placed under the theme: “Building momentum and growth for startups in Cameroon”.

Speaking during the event, the Economic Policy Analyst at the Nkafu Policy Institute, Dr Adeline Nembot, said it was aimed at gathering contributions that will help promote a thriving and prosperous entrepreneurial ecosystem for startups in Cameroon.

“This session is a follow-up of the activity that we have already been doing. We have been organizing events regarding the Startup Act. We are trying to build momentum for the growth of startups in Cameroon,” Dr Nembot said. 

The Economic Policy Analyst further explained that: “We are progressing in our report and now we are midway. We already have some recommendations towards our policymakers”. 

“We have launched a survey on startups and we already have a certain number of startups that have answered some questions. We are going to study these responses and come out with an analysis of startups based on the responses,” he added.

Cameroonian entrepreneurs are operating under a difficult environment and often require significant financial support to kick start or scale their businesses. 

Although a variety of funding opportunities exist, navigating the fundraising landscape is crushing for startups. 

According to data from the National Institute of Statistics, only 15% of Cameroonian startups in 2021 had access to formal funding options, while the majority relied on personal savings or informal funding sources. 

Despite efforts taken by government to exempt some companies from taxes for the first five years of their existence, in accordance to 2021 Finance Law, they still face many challenges that deter growth of startups.

Need for legal framework

One of the members of the Operational Working Group, Makoudem Tene, told The Guardian Post, that it is important for Cameroon to get connected and acquainted with the technological trend in order to be able to improve the living conditions of the population.

“There is still a lot that has to be done in terms of the legal framework, particularly something which is tailored to startups. There are some laws which are there but that which is precisely tailored to startups is not available,” Makoudem, also a research officer at the Ministry of Scientific Research and Innovation, MINRESI added. 

He also lauded the efforts of the Nkafu Policy Institute in trying to formulate a startup act and sensitizing the different stakeholders including the startup holders and infrastructure providers.

“All of them need to be aware of the importance of developing startups and the role they also play. It is also their responsibility to do everything possible to make sure that the startup sector takes off in our country,” he added.

At the end of the session, several recommendations were drawn up including a regulatory framework for startups, a financial system adapted to startups, the need for quality and affordable infrastructure amongst others. 

It is worth noting that the Nkafu Policy Institute, a think tank of the Denis and Lenora Foretia Foundation, focuses on using independent analysis to inform public debate. 

It has as mission to advance public policies that help all Africans prosper in free, fair, and democratic economies. 

This story was first published in The Guardian Post issue No:3143 of Wednesday June 19, 2024