Everything You Need to Know about the SA Startup Act Movement

South Africa has a strict regulatory framework designed to protect the interests of South Africans and local businesses. While many of the existing regulations focus on small to medium sized enterprises (SMEs), the country’s rapidly growing tech ecosystem highlights the need for startup-specific policy support.

One organisation leading the charge for a dedicated South African startup act is the SA Startup Act Movement. This collective represents the local entrepreneurship ecosystem, including investors, incubators, accelerators, and founders.

The SA Startup Act Movement seeks to establish a policy environment that facilitates the growth of startups and ensures they are not held back by outdated or unsuitable regulations.

In this article, we explore the work of the SA Startup Act Movement and its mission to foster a less constrained and more enabling environment for South African startups.

Policy Reforms Advocated by the SA Startup Act Movement

Founded in 2019, The SA Startup Act Movement has advocated for various policy reforms in South Africa. The reforms aim to address various challenges such as funding, talent acquisition, and regulatory hurdles - ultimately boosting the growth and competitiveness of the startup ecosystem.

Some of the key areas of reform advocated by the committee include adjusting intellectual property (IP) legislation related to transferring IP offshore; easing exchange control restrictions on establishing global company HQs; and easier access to work visas.

These reforms are directly related to the multitude of challenges faced by our local startups, including limited access to funding, particularly early-stage funding, infrastructure limitations like power outages and poor internet connectivity, and a skills shortage, especially in IT.

Engagements and Collaborations with Government and Stakeholders

The SA Startup Act Movement has actively engaged with various stakeholders, government departments and private organisations to drive reform. The committee has worked closely with the following organisations:

· Entrepreneurship catalyst SiMODiSA was selected by the committee to be the secretariat of the movement.

· Desktop research and focus group activities were funded by The World Bank. The outcome of this partnership was a Draft Position Paper released in September 2021.

· In 2021, the committee met with President Cyril Ramaphosa to discuss the progress of the movement, to understand the startup ecosystem and its challenges.

· In 2024, the UK-SA Tech Hub awarded the SA Startup Act Movement a third round of funding to cement its long-term commitment to the movement.

What’s Next for the SA Startup Act Movement?

As SA continues to foster a more inclusive and innovative entrepreneurial sector, the SA Startup Act Movement is poised to play a significant and critical role in shaping policy and the future of the local tech landscape.

Currently the organisation is working on the following:

· Transformation Fund Dialogue: The SA Startup Act Movement in partnership with the private and public sector hosted various online sessions to address key matters in the startup landscape.

· SA Startup Policy Roadshow – Ekasi Edition: The roadshow was designed to inform attendees on the progress of the movement, access insights to unlock funding and meet the stakeholders shaping the startup ecosystem.

Beyond these events, the committee continues its efforts to ensure a policy environment that supports the growth of local tech startups. The SA Startup Act Movement represents a significant step toward creating a thriving, innovation-driven economy.

With continued collaboration between government, the private sector, and civil society, South Africa is on the right path to becoming a more enabling environment for startups to scale globally.