Nigeria's Lagos, Egypt's Cairo, and South Africa's Cape Town have been ranked as the top three preferred African markets for startup investments, according to the latest Global Startup Ecosystem Index 2023 report.
According to StartupBlink, Lagos is "solidifying its status as the leading regional hub of Africa" and for the second year in a row was placed in the list of the world's top 100 cities for startups, ranking 82nd.
Significant growth was shown by the capital of Egypt, which jumped 36 spots from 2022 to 124th globally this year.
"Cairo substantially outperforms any other ecosystem in North Africa," the report stressed, adding that the city is "one of the top 50 global cities in the Foodtech industry."
As for Cape Town, it "reversed the decline" it had last year with an 11-spot improvement to 136th globally. The report explains that the city has become "the most popular digital nomad hub in Africa."
Kenyan authorities praised the country's success in the ranking, calling it an "impressive jump."
"We are thrilled to see Nairobi's remarkable rise in the Global Startup Ecosystem Index, with an impressive jump of 26 spots in the global rankings," Kenya National Innovation Agency CEO Dr. Tonny Omwansa said.
The second half of the African Top 10 included the capitals of Seychelles, Ghana, Mauritius, Senegal, and Tunisia, ranked between 232nd and 360th in the world.
In April, the International Institute for Management Development published a ranking of "The World's Smartest Cities" on the basis of the technological improvement they demonstrate. Cairo, Algiers and Cape Town were likewise recognized as the "smartest cities" in Africa.