Best African Countries Conducive for Startups in 2024

It’s a fact that Africa is increasingly becoming a hub for innovation and entrepreneurship and with a young population, increased internet reach, and a rising middle class, the continent is primed for startup boom. 

Several African countries have emerged as attractive environments for emerging startups due to supportive ecosystems, solid infrastructure, and favorable government regulations. Africa’s startup ecosystem is thriving, and countries across the continent making significant strides in fostering innovation and entrepreneurship.

According to Startup Blink’s Global Startup Ecosystem Index 2024, here are the top 10 best African countries for startups. The report says, “Among the 6 Middle East & Africa startup ecosystems ranked between 101- 200, all cities show positive momentum.”

South Africa

Ranked as the best African country for startups and 52nd globally, South Africa offers a robust infrastructure and a highly developed financial sector. Johannesburg and Cape Town are the main startup hubs, providing numerous accelerators, co-working spaces, and investment opportunities. 

Mauritius

Mauritius ranks second in Africa and 59th globally. Known for its political stability and strong regulatory framework, Mauritius provides an excellent environment for startups. The island nation boasts a high ease-of-doing-business score and offers numerous incentives for entrepreneurs, including tax holidays and grants. 

Kenya

Kenya, positioned third in Africa and 63rd globally, is often referred to as the “Silicon Savannah.” Nairobi, its capital, is a hotbed for tech startups, particularly in fintech and agritech. The country’s mobile money system, M-Pesa, has revolutionized financial services, setting a precedent for innovation. 

Nigeria

Nigeria ranks fourth in Africa and 64th globally. As Africa’s most populous country, Nigeria offers a vast market for startups. Lagos, its largest city, is the epicenter of the tech boom, with numerous startups focusing on solving local challenges in finance, health, and logistics. Despite regulatory challenges, the vibrant entrepreneurial spirit and significant investor interest make Nigeria a key player in the African startup landscape.

Egypt

Egypt, fifth in Africa and 66th globally, has a rapidly growing startup ecosystem. Cairo is the heart of this growth, with numerous incubators and accelerators supporting young businesses. The Egyptian government has also introduced several initiatives to foster entrepreneurship, including funding programs and regulatory reforms. 

Cape Verde

Ranked sixth in Africa and 78th globally, Cape Verde is emerging as a surprising contender in the startup space. Despite its small size, the country offers a stable political environment and pro-business policies. The government actively supports startups through various incentives and programs aimed at fostering innovation and entrepreneurship, particularly in tech and tourism.

Senegal

Senegal stands seventh in Africa and 86th globally. Dakar, its capital, is rapidly becoming a tech hub, attracting startups in fintech, health tech, and agritech. The government’s Digital Senegal Strategy aims to boost the digital economy and create an enabling environment for startups. 

Namibia

Namibia, eighth in Africa and 87th globally, offers a conducive environment for startups with its political stability and supportive regulatory framework. The Namibian government has introduced various initiatives to promote entrepreneurship, including startup grants and innovation hubs. 

Ghana

Ghana ranks ninth in Africa and 88th globally. Accra, its capital, is a thriving hub for startups, particularly in fintech, e-commerce, and healthtech. The Ghanaian government has implemented several policies to support startups, including tax incentives and funding programs. 

Tunisia

Tunisia, ranked tenth in Africa and 90th globally, has a dynamic startup scene, particularly in the tech and innovation sectors. Tunis, the capital, is home to many incubators and accelerators. The government has been proactive in supporting startups through various initiatives, including the Startup Act, which provides financial and regulatory support. Tunisia’s well-educated workforce and strategic location in North Africa make it an attractive destination for startups.