Across Africa's fastest-growing markets, compliance has transitioned from a procedural necessity to one of the strongest determinants of whether a foreign company succeeds, scales, or stalls. With regulators strengthening oversight frameworks, central banks raising licensing thresholds, and data protection authorities enforcing penalties at unprecedented levels, it is clear that in Africa, expansion belongs to companies that treat compliance as a strategic capability, not an administrative task.

Through our work at Velex Advisory across multiple African jurisdictions, we've seen firsthand how early alignment with regulatory expectations creates faster approvals, deeper institutional partnerships, and stronger long-term resilience.

Here's what over 10 years of experience has taught us.

Compliance Shapes Market Access Across Africa

It's tempting to think of compliance as something that comes after strategy. In Africa, it shapes the strategy itself. Licensing rules, AML expectations, foreign exchange controls, beneficial ownership disclosures, data protection principles, and sector-specific oversight all influence how a company should structure its entry, how quickly it can onboard customers, and whether it can integrate with financial institutions or central banking systems.

East Africa Compliance Requirements

In East Africa, regulators have significantly tightened standards between 2023 and 2025, raising the bar for any company seeking entry into the region. In Kenya, authorities introduced sweeping reforms across Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) frameworks to align with global FATF expectations.

These changes were accompanied by stricter enforcement of data protection, enhanced consumer protection laws, and increased oversight of digital financial services, including payments, lending, virtual asset providers, and mobile-money platforms. The result is a system where regulators expect full governance clarity, detailed AML documentation, secure data-handling processes, and well-defined operating models before issuing licences.

Kenya isn't the only country raising standards. Tanzania has strengthened its financial-sector supervision, introducing new consumer protection rules and tightening AML/CFT requirements for fintechs, banks, and telecom operators.

Uganda overhauled capital markets conduct and licensing rules, increasing scrutiny on foreign ownership structures and risk controls for digital platforms.

Rwanda, meanwhile, has deepened coordination across financial institutions, formally elevated its Financial Intelligence Centre, and expanded requirements for companies participating in regulatory sandboxes, ensuring only mature, well-governed entrants can participate in the country's fast-growing digital ecosystem.

Together, these reforms reflect a clear regional trend: East African regulators now expect companies to arrive structurally prepared, not just commercially ambitious. The threshold for market entry is higher, the documentation requirements are more rigorous, and regulatory interpretation is increasingly aligned with global compliance standards.

"In East Africa, companies don't struggle because demand is low. They struggle because they underestimate how much regulators expect to see before a licence is granted. When compliance is built early, market entry becomes faster and far more predictable." - David Moshi, Managing Director, Velex Advisory East Africa

West Africa's Regulatory Framework Explained

West Africa offers one of the most integrated regulatory environments on the continent, yet it remains one of the most misunderstood. Several regional blocs influence how companies operate, how financial systems are regulated, and how cross-border expansion is conducted. These structures create consistency across markets, but they also introduce layers of compliance that foreign entrants must understand to avoid costly missteps.

A central player is the West African Economic and Monetary Union (WAEMU), whose eight member states share a common currency (the CFA franc) and a single central bank, the BCEAO. WAEMU sets monetary policy, prudential rules, and foreign exchange standards across the union, which provides stability for investors and companies operating in multiple Francophone markets.

However, WAEMU does not handle sector licensing. Fintechs, e-commerce companies, telecom operators, and digital platforms must still secure national approvals, each with its own requirements, timelines, and interpretation of the rules.

Alongside WAEMU is ECOWAS, a 15-member bloc that includes both Anglophone and Francophone countries. ECOWAS influences competition regulation, cross-border trade, and market integration. A merger that crosses two ECOWAS countries can trigger regional scrutiny, even when national laws appear straightforward.

Then there is OHADA, which harmonizes company law across 17 West and Central African states. It standardizes incorporation templates, governance requirements, and dispute-resolution procedures. For foreign companies, OHADA determines the structure of your business from day one, regardless of the sector.

In practical terms:

• WAEMU governs how money moves and how financial institutions operate.
• ECOWAS influences competition and cross-border transactions.
• OHADA dictates corporate structure and governance.

Together, they create an environment where regional alignment reduces friction, but national regulators still hold the decisive authority on licensing, enforcement, and operational approval.

This layered reality is why Francis recommends a dual-track approach to compliance:

"The West African Economic and Monetary Union (WAEMU) brings structure to the region, but it doesn't remove the need to meet country-specific requirements. The strongest market entrants build strategies that work across the bloc and with the national regulators who shape day-to-day operations." - Francis Masade, Managing Director, Velex Advisory West Africa

Central Africa: A Market Rewarding Prepared Entrants

Central Africa, and the Democratic Republic of Congo (DRC) in particular, offers enormous commercial potential, but it is also one of the regions where compliance readiness most clearly determines whether a company succeeds or fails.

The DRC is undergoing a period of regulatory transformation, marked by new digital financial services rules, tighter AML enforcement, expanded telecommunications oversight, evolving gaming and payments frameworks, and renewed efforts to align with regional bodies, such as CEMAC, and international standards, including the Financial Action Task Force (FATF).

For foreign entrants, this means an opportunity exists, but only for those who are structurally prepared. Companies that arrive with fragmented governance, incomplete AML documentation, or unclear operating models often face long delays or outright refusals, whereas companies that demonstrate maturity and readiness build trust quickly with regulators, banks, and local partners.

"The DRC rewards companies that arrive prepared. When your governance, AML controls, and operational structure are strong from day one, you build trust quickly,  and that trust is what carries you through a market that is evolving fast." - Joel Madingu, Managing Director, Velex Advisory DRC

Compliance Builds Trust,  and Trust Drives Adoption

Across African markets, consumer adoption is closely tied to perceived safety. Whether it's a fintech wallet, an e-commerce marketplace, a mobility app, or a digital health platform, users tend to gravitate toward brands they believe will protect their data, identity, and financial information.

This is particularly visible in Ghana, where studies show that nearly three-quarters of users prefer to transact with regulated fintechs. These companies convert better, retain users for longer periods, and spend less on marketing. Investors reinforce the same pattern: venture valuations for compliance-ready companies are consistently higher, sometimes by as much as 25% - 30%.

Compliance shapes not just customer behaviour but partnership access. Banks onboard fully documented PSPs faster. Telecom aggregators prefer companies with established governance frameworks. Even central banks running CBDC pilots, open banking sandboxes, or real-time payments schemes prioritize players with strong internal controls.

Institutional Partnership Requires Demonstrated Compliance

African regulators, banks, fintech switches, and telecom operators are raising their standards.

• Kenya is expanding its real-time payments infrastructure.
• Ghana is developing its eCedi.
• Nigeria is implementing open banking.
• Rwanda continues to innovate through regulatory sandboxes.
• Botswana, Namibia, Zambia, and Tanzania are tightening AML/CFT rules.

Across all these reforms, companies with clear governance, internal audit procedures, cybersecurity documentation, AML frameworks, and that meet data protection requirements experience a far smoother onboarding process.

Compliance is fast becoming the determining factor for whether a foreign entrant integrates with national systems at all.

The Cost of Non-Compliance Is Rising

Between 2023 and 2025, Africa saw some of its most significant enforcement actions in history.

• Nigerian authorities fined financial institutions, technology companies, and broadcasters for data protection breaches.
• The Bank of Ghana suspended multiple PSP and MTO operators for compliance failures.
• South African regulators imposed penalties on large domestic and international banks.
• Namibia revoked telecom spectrum licences for outstanding compliance fees.
• Kenya has suspended fintech operations for AML violations.

These penalties demonstrate that, across Africa, regulators have shifted from intention to action; enforcement is now the norm, not just a warning.

Successful market entry into African markets requires proactive compliance. When companies fall short, the impact extends well beyond penalties: operations can be halted, bank accounts frozen, investor trust weakened, and entire structures rebuilt at high cost.

How Velex Advisory Supports Regulatory Alignment Across Africa

Companies expanding across Africa often struggle not because their products are weak, but because their compliance structures and documentation don't match what regulators expect.

Velex Advisory helps close that gap. Our teams work across East, West, South, and Central Africa to interpret local regulatory requirements, prepare comprehensive compliance frameworks, structure entities correctly within regional systems, and design governance models that reflect how African regulators assess risk.

As Artur Mildov, Chief Visionary Officer at Velex Group, consistently emphasizes, companies that embed compliance into their operating model from day one move faster, face fewer regulatory surprises, and retain far greater flexibility as markets evolve. This early groundwork consistently shortens approval timelines and prevents the costly restructures that slow many foreign entrants.

We also support companies in building credibility with regulators, central banks, financial intelligence units, and commercial banks; institutions that increasingly require clear governance, transparent ownership, and robust AML controls before approving partnerships or opening accounts.

Because we operate across multiple jurisdictions, we understand how each regulator thinks, what documentation carries weight, and how compliance frameworks should evolve to support cross-border expansion. In markets where enforcement is rising and expectations are tightening, this alignment is not just helpful; it is the foundation for smooth market entry and long-term operational stability.

If Africa is part of your growth strategy, Velex Advisory is the partner that ensures your entry is structured, compliant, and ready to scale. Get in touch with us!

Contributing Authors

1. David Moshi, Managing Director, Velex Advisory, East Africa
Leads regulatory strategy, market entry, and expansion across East Africa, supporting fintechs, payment companies, and digital platforms through complex licensing and compliance requirements.

2. Francis Masade, Managing Director,  Velex Advisory, West Africa
Specializes in regulatory mapping, competition frameworks, structuring, and operational readiness across Anglophone and Francophone West Africa.

3. Joel Madingu, Managing Director,  Velex Advisory, DRC
Advises companies entering and expanding in the DRC and surrounding Central African markets, particularly in sectors undergoing regulatory transformation.