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TECHNOLOGY | LOBBYING
Transforming legal systems for Africa’s tech start-ups Dr Nicolas Kyriakides, partner at Harris Kyriakides, Adjunct Faculty at the University of Nicosia, founder of Zenox Public Affairs, explains how African tech start-ups can utilise lobbying to ensure regulatory frameworks are fit for purpose for the evolving market.
The power of lobbying
Image Credit: Zenox Public Affairs
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nnovation is booming in Africa. A report from Boston Consulting Group recently revealed that between 2015 and 2020, growth of African tech start-ups receiving financial backing was nearly six times faster than the global average. However, many of these start-ups then fail to progress and secure further funding. Why is this? A number of factors have been blamed, and complex and inconsistent regulations across African countries have been cited as a major factor behind why these new businesses fail to find their feet and maintain consistent growth. In its report, Boston Consulting Group called on “African governments to improve the regulatory environment so that countries can better cultivate hospitable investment ecosystems for start-ups and venture capitalists.” But democracy moves slowly and change, when it comes, might be already out of date. Especially when looking at the tech sector and how rapidly everything moves. At the other end of the spectrum, regulation is sometimes used to stifle innovation and slow change. Take Nigeria as an example – one of Africa’s success stories, three out of the four unicorns in Africa (tech start-ups with a valuation of more than US$1bn) hail from Nigeria. However, ridehailing start-ups were banned in Lagos last year and the Nigerian Central Bank banned cryptocurrency in February. Understandably, these measures can stunt growth and leave businesses feeling frustrated and as if their hands are tied. However, there are steps businesses can take to positively influence conversations around laws and regulatory frameworks, helping to ensure they are fit for purpose for their business and the wider, evolving market.
Dr Nicolas Kyriakides.
behind certain lobbying activities can certainly be questionable, lobbying does play an important role in democracy. Lobbyists can help educate policymakers and provide information to help inform debate and change. Lobbying often enables government officials to have access to a greater wealth of knowledge and prioritise and organise this information. Lobbying can also have a particularly important role when it comes to improving a legal system and how it works in practice for businesses, as it ensures the lines of communication between state and citizens are open, and the government decision-making
For businesses across Africa, lobbying can play a vital role in creating a more open, businessfriendly legal system which is fit for purpose. However, throughout history, the process of lobbying policymakers has been open to abuse and at times, controversial. Across Africa, lobbying is still in its infancy and there isn’t much by way of legislation or regulatory frameworks governing these activities. However, whilst the motivators and ethics
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AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | SEPTEMBER 2021
Lobbying can play a vital role in creating a more open, business-friendly legal system.”
process is properly accessible. Arguably, there are lessons African countries can learn from Cyprus. In recent years important steps have been taken to ensure the political system is transparent and open and lobbying is done properly. New bills on transparency in the public decision-making process and related issues as well as introducing a bill against corruption and a bill for the protection of whistle-blowers are currently making their way through parliament. However, it is not just about legislation. Other initiatives have also helped to ensure Cyprus is viewed as a more open and transparent nation. For example, the establishment of the free to use Nomoplatform, allows users to track the policymaking process. Professionals can also be brought in to assist with the lobbying process, and having an agency support not just with the lobbying activities, but also communication more generally, can be very helpful. For instance, Cyprus’ first lobbying start-up, Zenox Public Affairs was established in 2020 to help close the communication gap between businesses and the government and to help boost access to justice at all levels. Zenox has been working closely with Bolt, Lime and other companies in its efforts to modernise the transportation industry including micromobility, ride-sharing, ride-hailing etc. Changes to the law can move at a snail’s pace and lobbying can help speed up the process to bolster business. The new Cyprus Forum, for which Zenox is a communications partner, is an annual non-profit conference that looks to create change through discussions and subsequent direct action. With a panel of speakers addressing different topics, such forums give a voice to professionals, foster collaborative thinking and help lead to solutions. A Nigeria Forum is due to take place in the second half of 2022 with the same aims. Although Cyprus is not perfect, the country has certainly managed to start on the path to tackle its issues around transparency and transform itself into a business destination for innovative companies. This roadmap could be helpful for any other African countries starting on a similar journey. ■
www.africanreview.com
