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The startup scene across South Africa

Where startups are forming across South Africa: the cities, accelerators and investors, and how you get close to them.

Capital
Pretoria
Region
Africa
Population
57,779,622
Currency
ZAR
Fig. 1371 · King protea

The ecosystem

The 2023/24 national R&D survey reported gross domestic expenditure of R43.413 billion, equal to 0.62% of GDP; government accounted for 50.3% of expenditure, business enterprises 27.7%, and foreign sources 18.7%.

DSTI announced a R10.4 billion allocation for fiscal year 2026/27, planned for deployment over three years, and stated a goal of raising gross R&D expenditure to 1.5% of GDP.

Sectors and strengths

The national R&D survey reported 2023/24 expenditure of R10.578 billion in medical and health sciences, R5.760 billion in engineering sciences, R4.835 billion in ICT, R3.650 billion in biotechnology, and R1.342 billion in nanotechnology. Business-sector R&D spending was concentrated in financial and business services (45.8%), manufacturing (29.9%), and mining and quarrying (10.5%).

As of . Official information. Source: SA’s research and development spending grows modestly amid economic challenges

SAVCA reported that ICT represented 65.9% of 2024 venture-capital deal value, while health represented 20% of Southern African deal value. Series A accounted for 42.5% of reported deals in 2024.

As of . Official information. Source: Venture capital sector hits R13.35bn with tech and health leading investment activity

Hubs and regional differences

StartupBlink’s 2026 index ranks Cape Town third among African startup cities and Johannesburg fifth; it reports annual score growth of 39.0% for Cape Town and 8.8% for Johannesburg. The index distinguishes population-adjusted country scores from city scores measuring absolute hub strength.

As of . Official information. Source: Best Startup Ecosystems in Africa in 2026

Gauteng accounted for 40.2% of national R&D expenditure in 2023/24, compared with 27.9% for the Western Cape and 10.0% for KwaZulu-Natal. Cape Town is the legislative capital, Pretoria the administrative capital, and Bloemfontein the judicial capital.

As of . Official information. Source: SA’s research and development spending grows modestly amid economic challenges; South Africa's provinces

The Western Cape Government identifies UVU Africa as lead of its 2025 Cape Town and Western Cape ecosystem report, with the Western Cape Government, Wesgro, and City of Cape Town listed as partners. The report maps startups, support organizations, talent pipelines, and policy.

As of . Official information. Source: Cape Technology and Innovation Ecosystem Report 2025

Capital providers

SAVCA reported R13.35 billion in active venture-capital investments across Southern Africa at year-end 2024, up 24% year over year. Its 2025 survey reported R3.29 billion deployed to startups in 2024, comprising R2.62 billion in equity deals and R670 million in venture debt; it recorded 222 rounds involving 110 companies.

As of . Official information. Source: Venture capital sector hits R13.35bn with tech and health leading investment activity

Independent funds accounted for 80.8% of reported 2024 deals and 85.2% of deal value. Angel investors contributed 10.3% of both deal volume and deal value.

As of . Official information. Source: Venture capital sector hits R13.35bn with tech and health leading investment activity

Startup support programs

DSTI says its Living Labs, Centres for Innovation and Entrepreneurship, and mLabs provide physical space, structured support, and training intended to help move prototypes toward market; it reported establishing 13 Living Labs. The reviewed evidence does not establish application terms or a current application window.

As of . Application availability not verified. Official information. Source: R10.4b allocation to advance science and innovation in South Africa

DSTI reported 19 approved KfW-linked infrastructure projects supporting vaccine development, testing, manufacturing, and regulation.

As of . Application availability not verified. Official information. Source: R10.4b allocation to advance science and innovation in South Africa

For founders

For research-intensive ventures, the reported R&D fields include health, engineering, ICT, and biotechnology, while DSTI describes lab and center support for prototype development. Verify current eligibility and application routes directly, since the reviewed program claims do not establish an open application window.

As of . Official information. Source: R10.4b allocation to advance science and innovation in South Africa; SA’s research and development spending grows modestly amid economic challenges

For investors

Cape Town and Johannesburg place third and fifth, respectively, among African startup cities in StartupBlink’s 2026 index, while Gauteng, the Western Cape, and KwaZulu-Natal account for distinct shares of national R&D expenditure. Treat regional R&D allocations and venture-capital survey measures as separate indicators rather than direct measures of startup deal flow in a particular city.

As of . Official information. Source: Best Startup Ecosystems in Africa in 2026; SA’s research and development spending grows modestly amid economic challenges

Constraints and recent changes

WIPO’s 2025 Global Innovation Index ranks South Africa 61st of 139 economies and gives the rank a statistical confidence interval of 58th to 66th; WIPO cautions that data availability and model changes affect year-to-year comparisons. Its tracker reports a 33% decline in venture-capital deal numbers from 2023 to 2024 and an 8.6% annual decline over 2020–2024.

As of . Official information. Source: South Africa ranking in the Global Innovation Index 2025

SAVCA’s survey reports R13.35 billion in active Southern African venture-capital investments at year-end 2024; its reported regional scope should be retained when using that figure. The national R&D survey reports 2023/24 expenditure, while SAVCA’s cited active-investment figure is for year-end 2024.

As of . Official information. Source: Venture capital sector hits R13.35bn with tech and health leading investment activity; SA’s research and development spending grows modestly amid economic challenges

Startup ecosystem standing

Where South Africa ranks

Rankings that list South Africa
RankingEditionPositionSince last editionTrustWhat it measures
Bloomberg Innovation Index2019#51Down 11BInnovation, Research
Global Startup Ecosystem Index (countries)2025#52No prior editionBEcosystem, Activity, Finance, Business Climate
IMD World Competitiveness Ranking2026#54Up 6BCompetitiveness, Business Climate, Performance
Global Innovation Index2025#61Up 8AInnovation, Competitiveness, Research, Talent
Doing Business (Ease of Doing Business ranking)Doing Business 2020#84Down 2BBusiness Climate
Positions come from each publisher's edition. Open a ranking for its method and trust notes, or an edition for the full list.

469 organizations with a profile

Who's based in South Africa

Investors 302

SIG logoInvestor

Driving impactful investments across Africa.

The 3 most prominent of 302. Browse all investors

Incubators 90

Raizcorp logoIncubator

Empowering entrepreneurs through comprehensive support.

ORIBI logoIncubator

Fostering social innovation through entrepreneurship.

The 3 most prominent of 90. Browse all incubators

Accelerators 45

Harambee Youth Employment Accelerator logoAccelerator

Harambee Youth Employment Accelerator is a not-for-profit social enterprise based in South Africa that addresses youth unemployment through…

V-Accelerator logoAccelerator

V-Accelerator is an accelerator that focuses on transforming collaboration prototypes into commercial products, utilizing a comprehensive development…

mLab Southern Africa logoAccelerator

mLab Southern Africa is a non-profit technology accelerator based in Pretoria, South Africa, focused on fostering innovation and entrepreneurship in…

The 3 most prominent of 45. Browse all accelerators

Venture studios 32

22 ON SLOANE logoVenture studio

Africa's largest startup campus and entrepreneurship hub.

Urbian logoVenture studio

Innovative product design and development studio.

The 3 most prominent of 32. Browse all venture studios

Based here, most-ranked first

Universities in South Africa

Pick what describes you

Your way in

City guides

Cities in South Africa

Questions about South Africa

How does South Africa rank as a startup ecosystem?

Its best position is #51 in Bloomberg Innovation Index (2019). It appears in 5 published rankings; the table above lists each one.

How many startup investors are based in South Africa?

302 investors based in South Africa have a profile here, including Search Fund Capital, SIG and Business Partners Limited. The real number is higher.

Are there accelerators or incubators in South Africa?

Yes. South Africa has 45 accelerators, 90 incubators and 32 venture studios on record, including Harambee Youth Employment Accelerator, Raizcorp and Trustlab Blockchain Innovation Studio.

Which universities are in South Africa?

2 universities have a profile: University of Cape Town and University of the Witwatersrand.

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