Nairobi has established itself as a leading tech innovation hub in sub-Saharan Africa. The city’s thriving fintech ecosystem stands out, representing 41% of total technology startup deals from 2018 to 2022. Notable successes include the $291 million acquisition of payments startup DPO by Network International in 2021. Sun King, a solar home systems producer, also secured impressive funding, raising $499 million in total VC funding, including $330 million in Series D rounds in 2022. Nairobi’s ecosystem value has grown by 281% from July 2019 to December 2022, cementing its position as a top startup destination.
Lagos, Nigeria’s economic powerhouse, continues to play a significant role in the region’s tech startup landscape. The city’s notable achievements in funding and valuation have earned it a place among the emerging ecosystems. The largest deal in sub-Saharan Africa came from Lagos with OPay’s $400 million Series C funding round in August 2021. Flutterwave, another Lagos-founded fintech company, raised $250 million in a Series D round in February 2022, pushing its valuation over $3 billion. Lagos’ startup ecosystem is further supported by the Nigeria Startup Act, enacted in October 2022, providing a regulatory framework for tech sector growth.
Cape Town has emerged as a promising player in the African startup ecosystem, making it to the top 100 emerging ecosystems. The city saw a 23% increase in ecosystem value and a 26% growth in early-stage deals. With the introduction of 22 new life sciences disciplines, Cape Town’s startup landscape has diversified. Its scenic backdrop, supportive entrepreneurial ecosystem, and access to resources create a thriving environment for startups.
Johannesburg, South Africa
Johannesburg, the economic hub of South Africa, hosts a dynamic startup ecosystem driven by innovation and growth. The city offers a favourable investment climate, a skilled workforce, and a vibrant entrepreneurial culture. Fintech, e-commerce, and health tech are among the sectors driving Johannesburg’s startup scene. The city provides the support and resources needed for startups to scale and attract funding, making it an attractive destination for entrepreneurs and investors.
Accra, the capital city of Ghana, is steadily establishing itself as a burgeoning tech hub in West Africa. The city has seen a rise in startups, particularly in fintech, agritech, and e-commerce sectors. Government initiatives promoting entrepreneurship and innovation, along with increased access to funding and resources, contribute to Accra’s growing startup ecosystem. With a favourable business environment and a vibrant community of entrepreneurs, Accra presents exciting opportunities for startups aiming to make an impact in Africa.
