Africa’s startup ecosystem has continued to grow, with Lagos leading as the top startup city in the continent, according to the Global Startup Ecosystem Index 2026. The index ranked 1,556 cities and 120 countries worldwide on three measures — the quantity of startup activity, the quality of outcomes, and the strength of the local business environment.
Top 10 African Startup Cities
The top 10 African startup cities include Lagos, Cairo, Cape Town, Nairobi, Johannesburg, Accra, Kampala, Victoria, Casablanca, and Tunis. These cities have shown significant growth in their startup ecosystems, with Lagos and Cairo being the only two African cities to break into the global top 100.
Growth and Rankings
The Middle East and Africa was the fastest-growing region, posting 20.2% growth against a global average of 10.3%. However, only two African cities, Lagos and Cairo, broke into the global top 100. This highlights that fast growth from a low base is not the same thing as having already arrived.
Victoria, Seychelles, is the highest-ranked startup ecosystem in Seychelles and one of the smaller African hubs to make the continent’s top 10. Its startup scene is particularly strong in fintech and digital services, with companies such as OKX, XT.COM, and Cellula among the leading startups associated with the city.
Kampala, Uganda, climbed 16 places on 34.1% growth, making it the second-ranked city in East Africa behind Nairobi and the seventh-ranked city on the continent overall. Uganda’s national ecosystem posted the fastest growth in East Africa this year at 32.5%.
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Startup Ecosystems
Cairo’s ecosystem is anchored by MNT-Halan, a digital banking platform built around financial inclusion for Egypt’s unbanked population.
Nairobi, Kenya, dropped nine places on growth of just 3.2%, a sharp slowdown after a stronger performance the previous year. However, the city remains home to companies like M-KOPA, which finances solar power, smartphones, and other essentials for underbanked customers across the region.
Africa’s startup ecosystem has continued to attract capital, but funding remains heavily concentrated among a small number of companies. Nairametrics data shows that 47 African startups raised a combined $102.2 million in disclosed deals in July 2026, with the top 10 recipients accounting for $88.85 million, or 86.94% of the total.
It will be significant to see how these cities develop and attract more investment as the startup ecosystem in Africa continues to grow. With the growth of fintech and digital services, the potential for innovation and job creation is substantial. The fact that startup companies are increasingly being formed in these cities is a positive sign for the continent’s economic development.
These cities could focus on developing more specialized infrastructure to support the growth of specific industries, such as fintech or healthtech. This could include the creation of dedicated hubs or accelerators, as well as initiatives to attract more investment and talent to the region.