When thinking about the best startup ecosystems, Africa usually isn’t among the most talked about as mega hubs in the USA and Europe are taking the spotlight. And, without a reason! Despite being a relatively young startup ecosystem and its infrastructural challenges, Africa is showing that it is ready to jump into the startup ecosystem train and become a go-to place for entrepreneurs and startup founders.
In this article, we will go over the 10 highest ranked African cities and celebrate their victories.
To determine which cities should be included in the list, we used the newest Global Startup Ecosystem Rankings Report by StartupBlink that analyzes startup ecosystems in 1,000 cities and 100 countries.
StartupBlink has launched the Startup Ecosystem Ranking Report 2019 that now ranks 1,000 cities and 100 countries worldwide and is available for download here.
Kigali, the capital of Rwanda and the biggest city in the country with an estimate of 1 million people during the day and over 700,000 people at night. The city hosts the headquarters of the majority of the companies operating in the country.
With its great infrastructure, connectivity and stable electricity, Rwanda is ranked fastest growing economy in Africa and 2nd place for doing business on the continent, with easy access to East African markets like Burundi, DR Congo, Uganda, Tanzania, and Kenya.
Maintaining the status quo and remaining in the same position as our last ranking, Ethiopia needs to do more to rise up the rankings. The country faces the same issues as other African ecosystems, such as lack of infrastructure and need for better startup-friendly and corporate taxation policies.
Nevertheless, it is worth to mention that Ethiopian startup ecosystem has some important players, like Sheba Valley, a leading hub for AI tech startups, and incubators like Ice Addis and blueMoon. The top startup city, Addis Ababa (at 505th), shows that the ecosystem is slowly developing, and has moved up 290 positions, nearly joining the top 500 club.
The entrepreneurial ecosystem in Chad is still developing. It lacks information and data. It is confronted with several challenges such as lack of organization such as a national agency of information, counseling, financial assistance, judicial, and administrative. Also, the taxes are high, and there is no exoneration from corporate tax (IS) for newly created companies. The microfinance sector is not noticeable. However, since the last three years, we have noticed a certain enthusiasm in the youth regarding entrepreneurship, as they understand its necessity given the current socioeconomic crisis in the country. This is confirmed by Chad Talent Forum in 2015, which saw the participation of several entrepreneurs with original ideas.
You know Cape Town as a tourist destination. An urban city with great food, multicultural population, and a well-developed infrastructure. But Cape Town is also a city with a flourishing startup ecosystem that has been in the making for many years. In StartupBlink’s 2019 report, Cape Town ranked 1st in South Africa and 157th globally. Continue reading Cape Town Startup Ecosystem→