Next Wave: How East Africa’s regulatory environment is suffocating startups
- Kenyan startups secured over $1 billion in venture funding in 2024.
- Regulatory challenges led to the collapse of Kenyan logistics startup Sendy in 2023.
- E-commerce giant Jumia shut down in Tanzania in 2022 due to tax compliance issues.
The regulatory environment in East Africa poses significant barriers to the growth of tech startups, undermining the region's potential as a leading innovation hub. Policymakers must prioritize creating a more predictable and supportive framework to encourage investment and foster entrepreneurship. Without substantial reforms, the region risks losing its competitive edge to more business-friendly environments.
