• Angola’s parliament unanimously approved a startup law to address legal gaps and support innovation.
• Authorities set a $3.5 million annual revenue cap to define startups, including pre-revenue ventures.
• Limited access to early-stage funding remains the main constraint, with only 2% of startups accessing venture capital.

Angola has adopted a legal framework to facilitate the emergence of startups and support the development of its national digital ecosystem. The National Assembly approved the startup bill unanimously on Thursday, March 19.

This move reflects broader efforts to accelerate digital transformation across Africa, where technology companies continue to emerge but face persistent structural barriers.

According to Industry and Commerce Minister Rui Miguêns de Oliveira, the initiative aims to fill an existing legal gap, strengthen legal certainty, and stimulate technological innovation. The framework clearly distinguishes startups from micro, small, and medium-sized enterprises by focusing on high-growth, technology-driven activities with global ambitions.

Rui Miguêns de Oliveira stated that the law sets a maximum annual turnover threshold of $3.5 million, without a minimum requirement. This provision allows authorities to recognize early-stage and pre-revenue ventures within the startup category.

Growing Support for Startups

Parliament approved the measure about four months after the Council of Ministers endorsed it. The National Institute for Support to Micro, Small and Medium Enterprises (INAPEM) led the regulatory framework’s development in partnership with the International Finance Corporation (IFC).

This initiative forms part of broader government efforts to strengthen Angola’s digital ecosystem.

In October 2025, Angola partnered with the African Development Bank (AfDB) to launch a $125 million project to boost youth entrepreneurship and job creation. The program aims to support the growth of more than 10,000 micro, small, and medium enterprises and startups.

Earlier, in March 2025, INAPEM signed a memorandum of understanding with the National Institute for the Promotion of the Information Society (INFOSI). The agreement covers startup identification and selection for the DIGITAL.AO incubation program. It also provides physical incubation spaces, training and capacity-building workshops, mentorship and advisory services, and facilitated access to investor and partner networks.

The International Finance Corporation launched a support program for Angolan startups in 2021. The World Bank Group’s private-sector arm signed an agreement with the Acelera Angola incubator-accelerator. It committed to provide financing, technical assistance, and material support to local technology and innovative companies.

Between Ambition and Constraints

Authorities have aligned these efforts with the broader national digital transformation strategy, which leverages information and communication technologies to drive socio-economic development. Rui Miguêns de Oliveira said Luanda views startups as a lever to boost economic activity, create skilled jobs, and formalize economic sectors.

In a “Startup Ecosystem Assessment of Angola” published in 2023, the IFC said that stronger support for startups and the promotion of innovation and entrepreneurship could help Angola diversify an economy that still depends heavily on oil. The report added that such efforts could expand job creation, particularly for young people and women.

However, Angola’s technology ecosystem remains at an early stage and faces significant challenges. A 2024 United Nations Development Programme (UNDP) assessment found that the country captures only a marginal share of funding and deal activity in Southern Africa. Most startups remain unfunded, and Angola lags behind comparable markets such as Botswana, Malawi, Namibia, and Zambia.

Out of more than 200 identified startups, only 2% have accessed venture capital. The report identified limited funding at all stages as the main constraint, particularly at the early stage, where transactions remain scarce despite their critical role in fostering innovation and attracting investment.

Angola has very few angel investors or seed funds, and it lacks a structured network to support them. Transactions below $250,000 remain limited, while grants and support mechanisms remain insufficient to generate strong momentum in the ecosystem.

This article was initially published in French by Isaac K. Kassouwi

Adapted in English by Ange J.A de Berry Quenum