Top 10 African startup cities in 2026, Lagos leads as Cape Town surges

In 2026, Lagos emerged as the leading startup city in Africa, according to a new index by StartupBlink. This East African city saw a significant boost in growth, outpacing other major hubs like Cape Town. The index ranks cities based on startup activity, the quality of outcomes, and the strength of the local business environment.

The Middle East and Africa region experienced the fastest growth globally, with 20.2% growth compared to the global average of 10.3%. However, only two African cities - Lagos and Cairo - made it into the top 100 cities worldwide. Tunisia also showed remarkable growth, with its national ecosystem expanding at a rate of 36.6%, making it North Africa's second-ranked ecosystem behind Egypt.

Despite this, Tunisia's overall ecosystem ranking slipped to 90th globally. Victoria, Seychelles' capital, secured one of the top 10 spots among African cities, particularly excelling in fintech and digital services. Kampala in Uganda climbed 16 places, ranking 7th overall on the continent, thanks to a 34.1% growth rate. Uganda's national ecosystem also posted the fastest growth in East Africa, with a 32.5% increase.

Accra in Ghana also improved its ranking, posting a 25.2% growth rate. However, Ghana's national ecosystem dropped to 87th globally. Johannesburg remained in the 122nd position globally, showing a slowdown in growth from 42.4% to 8.8%. Despite this, Johannesburg is still known as one of Africa's established fintech hubs. Cape Town, South Africa's capital, made a notable leap, moving up 24 places to become South Africa's startup capital.

This growth was driven by major investments in fintech and insurtech, as well as significant corporate engagement.