The Middle East and Africa region grew faster than any other in the 2026 Global Startup Ecosystem Index. A growth rate of 20.2% is nearly double the global average of 10.3%. However, the headline numbers flatter the continent.
The index, published annually by startup research platform StartupBlink, ranks 100 countries and 1,556 cities. Scores are built from three measures: quantity of startup activity, quality of outcomes, and the business environment. This year’s edition adds an Ecosystem Value metric: the cumulative financial worth of each country’s startups based on valuations and exits since 2006.
The United States retains a massive lead over the rest, scoring 314.09 points. The United Kingdom, in second place, scores 80.11. Israel is third at 71.46, Singapore fourth at 68.04, and Canada fifth at 40.78.
South Africa, the top-ranked African country, scores 5.16.
The US recorded 23.6% growth this year, extending that lead further.
Singapore had the highest growth in the top ten, at 24.4%. Canada had the lowest, at 9%, its second consecutive below-average year. The top five’s combined growth of around 16% on average means the absolute gap to the countries below keeps stretching, regardless of how fast those countries grow.
South Africa holds steady, Cape Town surges
South Africa is ranked 52nd globally, the same position it has held for three consecutive years. It remains the continent’s top-ranked ecosystem and recorded 31.3% growth, the 5th-highest on the continent.
Cape Town climbed 24 places to 114th globally on 39% growth, overtaking Johannesburg, which held on to 122nd position on 8.8% growth. Cape Town is now third in Africa at city level.
Pretoria was the fastest-growing South African city, rising 52 places to 377th globally with 64.8% growth. Durban climbed 43 places to 601st.
South Africa ranks first in Africa in Clean Energy and 12th globally in that sub-industry. Its ecosystem value stands at US$14.3-billion. It has one unicorn: TymeBank, the Johannesburg-based digital bank that became the country’s first fintech unicorn in 2020.
South Africa ranks 61st in the Innovators Business Environment Index, a separate StartupBlink measure of the underlying conditions for innovation. A startup ecosystem can outrun its business environment for a while, and the index data suggests South Africa has been doing exactly that, hence its ranking 10 positions above its Business Environment ranking.
Nigeria recovers
Nigeria (62nd) rose four places on 31.8% growth, reaching its highest position since 2022. Lagos climbed six places to 70th globally, making it the highest-ranked city in Africa, thanks to 23.2% growth. Abuja jumped 52 places to 347th. Port Harcourt rose 124 places to 679th.
Nigeria’s ecosystem value of US$20-billion is the highest on the continent. It ranks first in Africa in Online Banking and Cryptocurrency, 13th and 17th globally in those sub-industries. It also leads Africa in the Ecosystem Value category, which measures financial returns from startup activity.
Nigeria ranks 95th in the Innovators Business Environment Index, the lowest of any significant African ecosystem in the index. In other words, the startup numbers outperform the conditions considerably.
Kenya stalls
Kenya (61st) fell three places after reaching 58th in 2025, recording near-zero growth of 0.2%. That was the lowest rate in Eastern Africa and a sharp drop from 33.5% growth last year. Nairobi dropped nine places to 116th globally.
Kenya still ranks second in Africa overall and leads the continent in Agritech, ranking 22nd globally in that category. Its ecosystem value is US$12.8-billion. Nairobi’s total score is more than 36 times that of Mombasa. Secondary cities have not developed and the index flags this as a key structural concern.
Elsewhere on the continent
Egypt (65th) grew 4.7%, below the global average. Cairo recorded 0.7% growth. Ghana fell six places to 87th despite 25.5% growth. Rwanda dropped four places to 100th, last in the ranked index. Senegal (97th) recorded negative growth of −3.1%. Namibia fell nine places to 94th.
Mauritius returned to the index at 85th, having previously peaked at 59th in 2024. Cape Verde (74th) held its position on 31.3% growth. Tunisia (84th) and Morocco (90th) both grew above 30% but fell in rank. Uganda (96th) grew 32.5% and moved down two places.
The pattern across the continent is consistent: percentage growth looks strong, but Central Asia, the Gulf, Southeast Asia and the Balkans are all climbing faster from larger bases.
What separates the top five
The US, UK, Israel, Singapore and Canada each have deep exit infrastructure, established venture capital networks and multiple strong cities. Their business environments rank at or above their ecosystem positions; the inverse of what the data shows for Africa’s leading ecosystems.
“The most powerful tool available to policymakers is not grants or accelerator programmes, but the business environment and the building of a global startup ecosystem brand,” says StartupBlink CEO Eli David Rokah.
* Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on social media on @art2gee.