Top 10 countries leading Africa’s Startup ecosystem in 2025

Africa’s startup ecosystem has experienced a profound transformation in recent years, propelled by innovation, increased investment, and the rapid expansion of the digital economy.

• Business Insider Africa presents the 10 best African countries for Startups
• The ranking is courtesy StartupBlink’s Global Startup Ecosystem Index 2025!
• Africa sees regional variations, with Southern and Northern Africa leading in growth and infrastructure.

As of 2025, Africa is steadily establishing itself as a global hotspot for Startups and entrepreneurial activity, with a number of ecosystems making significant strides in both scale and sophistication.

The Global Startup Ecosystem Index by StartupBlink, published annually since 2017, ranks 1,473 cities and 118 countries worldwide, providing a comprehensive overview of the global startup landscape.

The data showing Startup growth globally reveals that Asia–Pacific leads all regions, expanding by +27.4%. Europe follows at +26.2%, with the Middle East & Africa close behind at +24.9%.

The rankings are derived from hundreds of thousands of data points, processed through a proprietary algorithm that assesses ecosystems across three core subscores: Quantity (the level of startup activity), Quality (the success and impact of these activities), and Business Environment (the overall conduciveness of the ecosystem to startup growth).

This rigorous, data-driven methodology considers factors such as the number of startups, access to funding, and the presence of support structures like accelerators and co-working spaces.

It provides valuable insights into emerging trends, highlights successful ecosystem models, and identifies areas in need of strategic intervention.

In doing so, it empowers policymakers, investors, and ecosystem builders to make informed decisions that can accelerate sustainable innovation and economic development across the continent.

StartupBlink’s findings on Africa

The StartupBlink’s report on Africa highlights a continent undergoing a dynamic shift in its startup ecosystem.

Africa’s startup landscape in 2025 shows uneven but dynamic regional growth.

Southern Africa leads with a 24.9% increase in startups, supported by mature infrastructure, strong financial systems, and policy backing.

Northern Africa follows with 22.9% growth, driven by a young digital population, cross-border collaboration, and expanding support networks.

Western Africa records 16.4% growth, propelled by fintech innovation and entrepreneurial energy, though hampered by structural and regulatory challenges.

Eastern Africa sees moderate growth at 6.1%, with progress in agri-tech and mobility despite infrastructure gaps. Central Africa trails with just 1.9% growth, reflecting deep-rooted limitations but also significant untapped potential.

Despite persistent challenges like infrastructure gaps, limited capital, and regulatory hurdles, Africa’s entrepreneurial and digital sectors are gaining momentum.

Growth is fueled not just by the number of startups, but by increasingly supportive ecosystems featuring better policies, rising tech talent, improved funding access, and thriving innovation hubs driving the continent’s digital economy.

According to the 2025 Global Startup Ecosystem Index by StartupBlink, the top 10 African countries driving this momentum are:

The top five African startup hubs are led by South Africa (rank 52, score 3.927), known for strong infrastructure in Johannesburg and Cape Town. Kenya (rank 58, score 2.764) thrives with mobile tech innovation in Nairobi.

Egypt (rank 65, score 2.100) grows through government support in Cairo and Alexandria. Nigeria (rank 66, score 2.080) is a fintech hotspot in Lagos, driven by a large youth population.

Cape Verde (rank 95, score 1.040) is an emerging hub with improving infrastructure and government backing.

These top five cities are key players in Africa’s startup scene.