I have had to spend some time thinking about the steep path most technology startups in Nigeria are faced with.
Base don this conjecture I believe the government has a role to play in at least one aspect. One way I think would be of immense help would come in form of well structured tax-breaks for new technology startups.
A tax break for technology and software companies for the first three years of operation could be structured so that only those companied that meet a set of requirements would be allowed to participate.
We can include the conditions below, even as I must say that this in not an exhaustive set of requirements.
Companies that would benefit from a tax-break:
- Must have a staff strength of not more than 4 employees.
- Must be in the business of technology innovation or software development.
- Must be willing and capable of providing verifiable information about progress and business activities.
- Must provide bank account statements as evidence in cases where business has not commenced.
See this report by the Omidyar Network on accelerating entrepreneurship in Africa results from a detailed survey.