Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.


Senegal's Fintech Startup Sudpay Is Playing the Taxman

Article Image
When it comes to fintech startups, one normally expects to hear about innovative solutions that enable payments and money transfers. Senegal's Sudpay is doing more than that: It recently teamed up with the local tax authorities to use its platform, called Townpay, to track and collect taxes from "micro, small and medium enterprises (MSMEs)."

Apparently the local businesses are no fan of the tax authorities. According to estimates quoted by Sudpay, tax evasion rates could be as high as 40%. "Our digital platform makes it possible to identify all taxpayers, as well as the type of taxes they have to pay. Our solution allows municipalities to geolocate the activities of the taxpayer. The solution also works in offline mode for the municipalities that are in rural environments," according to Samba Sow, CEO and co-founder of Sudpay.

But the startup isn't just appealing to the tax authorities. In order to have on board as many companies as possible, Sudpay also offers benefits to the MSMEs, for example access to micro financing.

Sudpay will get a 2% commission on the tax amount collected. The product is still in trial mode, but Sudpay claims it has already recovered more than 40% of the tax payments that would otherwise have lost since it began the service.

Sudpay's other products include a mobile payments app for public transport and parking (TTS-Trans), event ticketing (TTS-Event), and merchant-to-merchant bill settlement (TTS-Market). It also re-sells other financial products, such as pension insurance.

Now operating in eight Western African nations (all Francophile), Sudpay aims to expand to 16: It also plans to export its Townpay platform to Côte d'Ivoire and Guinea.

Sudpay's business has impressed the GSMA's Ecosystem Accelerator Innovation Fund, which awarded it equity-free funding earlier this year. No specific amount has been announced, though grants rnge between £100,000 and £250,000 (US$131,000 and $329,000).

Sudpay has also made it to the world final of Seedstars, the global Startup Competition in Emerging Markets, and will pitch to win up an investment of up to $1 million next year in Switzerland.

— Wei Shi, Site Editor, Connecting Africa

Innovation hub


Hot startup of the month: Pan-African fintech KamaPay

This month's hot startup is pan-African fintech KamaPay, which helps individuals and businesses make cross-border payments on the continent.


Afretec awards $3.3M in grants to African research teams

The African Engineering and Technology Network (Afretec) has awarded grants worth $300,000 each to 11 university research teams across Africa to advance digital technologies.

More Innovation hub

Latest video

More videos

Sponsored video

More videos

Industry announcements

More Industry announcements

Flash poll

All polls

Africa Tech Perspectives


Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.


Challenges and opportunities for women's tech careers

A new survey reveals that COVID-19, the cost-of-living crisis, skills shortages and a lack of mentorship have negatively affected women's career development over the past two years.


Survey: Opportunities for Women in Tech

Take our new survey for women across Asia, Europe and Africa looking at the biggest challenges and opportunities for women-led enterprises and trends in tech careers for women.

More AfricaCom perspectives

Upcoming events

London Tech Week
June 13-16, 2023
Queen Elizabeth II Centre, Broad Sanctuary, London SW1P 3EE
Cybertech Africa 2023
August 1-2, 2023
Kigali Convention Center, Kigali, Rwanda
Africa Tech Festival, Home of AfricaCom and AfricaTech
November 13-16, 2023
CTICC, Cape Town
More Upcoming events

Guest Perspectives


Omdia View: February 2023

By Omdia Analysts

In February 2023 key events in the Middle East and Africa included a major Internet project for Africa's underserved by Liquid Intelligent Technologies and Microsoft as well as a 5G launch in Tanzania – that and more in this month's Omdia View.


Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

Like us on Facebook

Newsletter Sign Up

Sign Up