How To Launch A Startup In Dakar, Senegal

In the last couple of years, Dakar has proven to be one of West Africa’s most promising startup locations. Senegal’s capital is known for its colourful art and music scene and bustling markets, but it offers so much more.

In fact, with entrepreneurs getting more government support and digital infrastructure that is growing by the day, it’s got some serious potential. So if you are considering launching a startup in Africa, this may just be the location to do it in.

 

Why Is Dakar A Good Place For Startups?

 

There are a few pretty compelling reasons that make Dakar an ideal destination for new startups. From its location to a surge in digital adoption, here are a few of them.

Location: Situated on the westernmost tip of Africa, the city offers access to the Middle East, Europe and the rest of Africa. It also has port access and accessible flights, making it a great spot from a logistics perspective.

Tech support: There has been an increase in tech hubs and co-working spaces designed to support tech startups ranging from FinTech to AgriTech.

Government help: Senegal launched its Digital Senegal 2025 initiative to breathe new life into its digital economy and attract entrepreneurship. It includes incentives like tax benefits in an effort to attract new businesses.

Digital use: The city’s population is a tech-savvy one and mobile apps are in demand especially those focused on finance.

 

Industries That Have High-Growth Potential

 

If you are considering starting a business in Dakar, it’s definitely worth knowing which industries are doing well. It’s not to say that you couldn’t launch a startup in other sectors, but these ones are gaining significant traction.

AgriTech: Agriculture is the backbone of Senegal’s economy but a lot of gaps still exist in the industry. As a result, there is a major need for startups in precision farming and supply chain management.

Healthcare: Like most African countries, access to proper healthcare is limited so startups in telemedicine and digital health platforms are making waves.

Education: Dakar has a high youth unemployment rate so any initiatives offering access to learning and education are welcomed.

FinTech: There is great potential for online banking solutions and personal finance apps as the population is largely unbanked.

 

Accelerator And Incubator Programmes

 

It’s always recommended for founders to join an accelerator or incubator programme early on. These can open the door to a range of opportunities from networking and meeting the right people to support and guidance along the way. Here are some of Dakar’s top programmes.

Impact Hub Dakar: A co-working community that offers events and support and is also part of the global Impact Hub network.

Jokkolabs: Another co-working space that regularly hosts events for entrepreneurs in the digital space.

CTIC Dakar: An incubator which supports ICT and mobile startups through extensive training, networking and mentorship.

 

Funding Opportunities For Startups

 

On the whole, funding in West Africa is still a challenge. However, there are some options that Dakar-based startups could look into.

VCs and angel investors: It’s quite rare to come across Dakar-based investors specifically but your best bet would be to approach regional venture capital firms like Orange Ventures and Partech Africa.

International organisations: The African Development Bank often offers programmes where small-to-medium-size enterprises (SMEs) can access capital.

Competitions: Seedstars Dakar is another way for startups to gain exposure and meet new connections in addition to winning prize money.

 

 

Visa Requirements For Foreign Entrepreneurs

 

If you are a non-Senegalese resident then you will need a visa to be able to live in Dakar and run a business there. Let’s take a look at some of the available options.

Short-Term Visa: Residents of most countries, including the EU, can enter into Senegal visa-free for up to 90 days.

Long-Term Residency: A residence permit will be required for those wanting to legally live and work in Senegal. For approval, you will need proof of income and a registered business.

Work Permits: If you want to hire yourself to work for your own company then you may also need a work permit in addition to the residence card.

 

How To Start A Business In Dakar

 

If you’re an ambitious founder with your eye on Dakar, here is a simplified step-by-step guide on how you can legally start a business there.

 

Choose A Business Entity

 

In Dakar, most startups tend to choose a SARL for their business structure which is similar to a Limited Liability Company (LLC). Or, you could opt to register as a sole trader or SA (Public Limited Company).

 

Register The Business

 

The next step is to register your company with the Chamber of Commerce and if you are hiring employees, you also need to register for social security. To apply for your tax ID (also known as your NINEA), you can do it with the General Tax Directorate.

After the business is registered, you can open a business bank account to manage your company’s finances.

 

Apply For Permits

 

Depending on which industry you are in, you may need additional permits. These are usually required for healthcare, food, transport and education.

 

Should You Launch A Startup In Dakar?

 

Starting a new business in Dakar will certainly not be an easy undertaking given its limited infrastructure and access to funding. However, it offers a dynamic environment with markets that have loads of potential opportunities.

The city’s startup community is continuing to grow and as more local and international entrepreneurs call it home, it’s a place where you could build a truly impactful venture with the right mindset and some patience.

Good luck!