Ask any entrepreneur, one of the most challenging aspects of business growth across the continent is compliance. Sidebrief, a household name using innovation to tackle this problem, is on a mission to simplify the complex web of regulations that often hinder local and cross-border business operations in Africa.
Sidebrief has made significant traction through its flagship product, Launch, which has revolutionised the way businesses navigate the complex process of setting up operations in new countries, and its Compliance Manager product that automates everything compliance— from annual returns filing to tax compliance, and licensing.
Sidebrief has positioned itself as an indispensable ally for entrepreneurs and enterprises across the continent. The company’s innovative approach hasn’t gone unnoticed. Backed by key investors like Techstars and The Baobab Network, Sidebrief has gained momentum in its mission to become the go-to platform for business compliance across Africa. This investor confidence has fueled Sidebrief’s ambitious expansion plans, with the company now offering its services in over 30 African countries, as well as the US and UK.
In a chat with one of the key figures driving this innovation – Oritsegbubemi Ikomi, (also known as Gbubemi Ikomi), the Head of Operations & IT Governance at Sidebrief, we got a glimpse into the inner workings of a company that’s reshaping the African business landscape.
● What problem is Sidebrief solving?
For a while now, the African business landscape has been experiencing a rapid transformation, with small businesses serving as the backbone of the economy. According to a 2023 World Bank report, 90% of all enterprises in Africa are small businesses, and Sub-Saharan Africa alone is home to approximately 44 million micro, small, and medium-sized enterprises (MSMEs). Despite their critical role, these businesses face significant compliance challenges, as 60% of African countries have recently implemented legislative changes. Governments frequently update regulations and compliance requirements throughout the year, adding to the complexity. This constant flux in regulatory frameworks creates an unpredictable environment where businesses must continually adapt to new obligations, often with minimal notice or guidance. The widespread confusion around these ever-changing rules is evident, as 54% of individuals are unclear about their tax obligations.
Traditional compliance management exacerbates these challenges, with costs typically ranging from $5,000 to $15,000 per country and processing times taking 30 to 45 days. For growing businesses, this poses a substantial barrier, especially when trying to navigate such a dynamic and evolving regulatory landscape. The combination of high costs, lengthy processing times, and the complexity of constantly changing regulations makes compliance a significant hurdle for African MSMEs, threatening their ability to scale and thrive.
Sidebrief has positioned itself as a solution to these challenges by offering a ‘one-stop shop’ for regulatory compliance across African markets. “Our platform reduces compliance costs by up to 70%, bringing expenses down to $1,500-$4,500 per country and slashing processing time to just 7-14 days, representing a 65% improvement over traditional methods,” Gbubemi shares.
Through the comprehensive suite of services—including automated business incorporation, tax registration, and a sophisticated Compliance Manager product—Sidebrief simplifies the complex web of regulatory requirements that businesses face when operating across multiple African jurisdictions.
The impact of Sidebrief’s solution extends beyond mere cost and time savings. By automating compliance processes in African markets and the US and UK, the platform enables businesses to allocate their resources more effectively, focusing on growth rather than administrative burdens. This facilitation of quicker market entry and international expansion is our key contribution to fostering a more interconnected African and global business ecosystem.
● How far has Sidebrief gone in solving this problem?
Sidebrief currently supports 30 countries, including key markets like South Africa, Ghana, Nigeria, Uganda, Rwanda, Egypt and Kenya. With a vision to cover all 54 African countries, Gbubemi emphasises the company’s commitment to creating a seamless business environment through the automation of compliance across the continent.
“We’re building the infrastructure for a borderless Africa, where regulatory complexities no longer hinder business growth and innovation,” she says.
As one of the most widely used compliance platforms for small businesses in Africa, Sidebrief now services over 1,000 thousand businesses monthly. This significant milestone demonstrates the platform’s growing impact and market acceptance across the continent. The company has also secured strategic partnerships with leading banks and fintech companies across Africa, further strengthening its position as a key player in the business compliance space.
To achieve its ambitious goal of pan-African coverage, Sidebrief is continually enhancing its automation capabilities and forging strategic partnerships with local regulatory bodies, government agencies, and stakeholders in various markets. The company has established an impressive network of over 200 collaborations with local regulatory bodies, agencies, and service providers across key African markets. These collaborations enable the company to navigate unique market requirements more effectively, powering its compliance automation technology.
As Head of Operations & IT Governance, Gbubemi ensures that the company’s technology infrastructure can scale efficiently in new markets and oversees the company’s operational processes, optimising them to suit customer needs. Gbubemi constantly collaborates with the tech team to ensure that the platform operates efficiently and is continually improved to adapt to various regulatory landscapes.
● How challenging has it been to be the first mover in this space?
Despite Sidebrief’s impressive growth and impact, the journey hasn’t been without its challenges. Gbubemi highlighted some significant hurdles the company has faced since its inception.
One of the most prominent obstacles has been ensuring the scalability of Sidebrief’s platform while maintaining a seamless user experience across diverse regulatory environments.
“Integrating and automating each country’s compliance requirements in product development has been a complex task.”
This challenge is further compounded by the rapid pace of Sidebrief’s expansion as the company enters new markets. “We continuously adapt our technology to meet the specific needs of each jurisdiction and this necessitates a delicate balance between growth and excellent service delivery which has become Sidebrief’s hallmark”.
However, true to the spirit of innovation that drives Sidebrief, these challenges have been viewed as opportunities for growth and improvement. Under Gbubemi’s leadership, the company has implemented a range of strategies to address these issues including enhancing their technology infrastructure and developing robust talent management practices.
“One of my key responsibilities is ensuring proper cross-functional collaboration between legal, compliance, and tech teams to enable us address operational and technical roadblocks effectively as we expand.”
Through this proactive approach, Sidebrief continues to overcome obstacles, solidifying its position as a leader in regulatory compliance across Africa.
● What’s the future of compliance in Africa?
“As we envision the future of compliance in Africa, we’re seeing a significant shift as governments across the continent intensify their compliance enforcement to boost revenue generation,” Gbubemi notes.
This trend is particularly evident in markets like Nigeria and Kenya, where authorities are implementing digitisation initiatives to capture and regulate even the smallest businesses in the informal sector. Nigeria’s recent drive to digitise tax collection and business registration at the grassroots level exemplifies this growing focus on comprehensive compliance.
The establishment of a unified compliance ecosystem stands out as a critical goal in this evolving landscape. This ecosystem aims to standardise regulatory requirements across regions, simplifying the complexities businesses face when navigating various jurisdictions. Such harmonisation will facilitate quicker market entry and streamline compliance processes, fostering a more interconnected African business environment.
Another vital component of this vision is the collaboration between the public and private sectors. By working together, these entities can adopt digital-first approaches to regulation, ensuring that compliance is not only efficient but also responsive to the rapidly changing business landscape. The increasing digitisation of informal sectors across African markets creates an unprecedented opportunity for technology-driven compliance solutions.
Gbubemi believes that Sidebrief is exceptionally positioned to thrive in this evolving compliance landscape. “Our technology infrastructure is critical as governments ramp up their compliance requirements. We will be able to leverage our partnerships and relationships with regulators and stakeholders to help shape the technological infrastructure for compliance,” she shares. With these existing collaborations and a deep understanding of the shifting regulatory landscape, Sidebrief is poised to remain at the forefront of innovation as the industry transitions toward a unified compliance system that accommodates both formal and informal business sectors.
