When it comes to attractiveness for Africa’s startups, Lagos leads the ranking of African cities according to data by StartupBlink.
In 2023, according to data provided by StartupBlink, the best city for startups in Africa was Lagos, in Nigeria, with a total score of 8.23 points.
The largest city in Africa and an important financial hub for Nigeria and the whole continent, Lagos ranked 82nd among 1,000 cities worldwide. This makes it Africa’s startup capital.
On the continent, Nigeria’s commercial capital managed to outperform its direct competitors Cairo (Egypt), Cape Town (South Africa) and Nairobi (Kenya) in 2023, a trend that is likely to continue.
Cairo (5.68), and Cape Town (5.19), Nairobi (5.19), followed as leading cities for startups on the African continent.
These scores are the exception rather than the norm though. As our chart shows, African cities still have room to improve in terms of sowing the seeds for future startup growth.
Nigeria Startup Act 2022
Lagos, Nigeria’s commercial hub, remains a major player in the digital startup scene in Africa.
The city has earned a spot among the developing ecosystems thanks to its noteworthy funding and valuation accomplishments.
The Nigeria Startup Act 2022’s strong tax administration and specially designed incentives have been a major driver of the expansion of Lagos’s tech startup scene.
For qualifying startups, the act offers additional tax relief equal to five percent of taxable profits for a maximum of five years, in addition to a four-year tax exemption.
Financial technology firms in Nigeria, particularly in Lagos, such as OPay, Branch, Flutterwave, and Glovo, have already had notable financial success.
The GSER 2023 study encourages entrepreneurs to use these success stories as inspiration and to think about Lagos as a potential hub for their business endeavors as well as a place to call home.