The City of Cape Town, which has long positioned itself as frontrunner in South Africa’s start-up ecosystem, has reclaimed the top spot as the best start-up city.
This, after it was overtaken by city of gold Johannesburg in last year’s start-up ecosystem rankings.
Research platform StartupBlink’s latest Global Startup Ecosystem Index 2026 ranks the start-up ecosystems of 100 countries and 1 556 cities globally, showing the standings of South Africa’s major start-up cities, among others.
The index, which has been released annually since 2017, is built in collaboration with more than 100 ecosystem and global partners, including Crunchbase, Semrush, MIT Regional Entrepreneurship Acceleration Programme and the UNDP.
The data is also accumulated directly from StartupBlink’s interactive Global Start-up Ecosystem Map.
On country rankings, the indexshows the Middle East and Africa led all regions with 20.2% growth in total score, nearly double the global average of 10.3%.
While several African ecosystems recorded negative or limited growth, South Africa held its position at number 52 for the third consecutive year. The country was ranked 53rd in 2023.
The country, based on the index insights, recorded 31.3% growth, maintaining its role as the leading African ecosystem on a per capita basis, it states. The Southern African nation’s start-up ecosystem is valued at $14.3 billion, with one unicorn.
Zoning into city specifics, the index shows four South African cities rank within the global top 1 000 – Cape Town, Durban, Johannesburg and Pretoria.
Cape Town ranks at 114th position with 39% growth and becomes South Africa’s highest-ranked city again, ahead of Johannesburg at 122. The Mother City’s global rank change is 24 places up compared to 2025, according to the index.
“Cape Town records the largest ranking improvement among Africa’s top 10 cities, rising to third place on the continent,” it reveals. “Johannesburg now ranks second nationally while remaining stable at 122nd globally. It places fifth in Africa, with fintech standing out as its strongest industry, ranking 4th on the continent.”
In the case of South Africa’s administrative capital Pretoria, it has entered the global top 400 after rising 52 places to 377th, driven by 64.8% growth. Pretoria’s growth rate is the highest among South African cities, notes the index.
Meanwhile, Durban climbs 43 places to 601st globally with 47% growth, positioning it just outside the global top 600.
In South Africa, Cape Town and Johannesburg are widely considered the two major start-up cities, with notable start-up champions such as GoTyme Bank, formerly TymeBank, and fintech Crossfin.
Cape Town is also home to several tech heavyweights, and the greater Cape Town area, including Stellenbosch, was previously named the most productive technology sector in Africa.
The city is also number one in edtech start-ups in the country, number one in biotechnology in Sub-Saharan Africa and leads in healthtech in South Africa.
For the 2025-2026 period, the index identifies three use-case highlights in the start-up ecosystem.
Among the notable mentions is Cape Town-based Naked Insurance, closing the largest African insurtech funding round, to date.
The digital insurer raised R700 million ($38 million) in a series B2 round led by global impact investor BlueOrchard, with participation from existing backers Hollard, the IFC, Yellowwoods and DEG.
“As the single largest insurtech investment recorded in Africa to date, the deal validates Cape Town as a continental hub for scalable, AI-driven financial services, and signals to global impact investors that the city can produce fintechs capable of leading regulated markets.”
Second is fintech Stitch, securing $55 million in a series B funding round. The Cape Town-headquartered Stitch also completed the strategic acquisitions of ExiPay and Efficacy Payments.
“These moves deepen Cape Town’s concentration of fintech infrastructure capability, signalling the city as a preferred African base for building sophisticated, cross-border fintech platforms that draw top tier international investors,” it states.
Finally, OpenAI hosted the inaugural AI innovation Forum in Cape Town. The ChatGPT maker partnered with start-up campus 22 On Sloane to host the AI Innovation Forum in Cape Town ahead of the Africa Tech Festival.
Convened under the theme: “Co-creating Africa's AI future”, the gathering brought together founders, global researchers and government ministers, featuring live demonstrations and start-up showcases that connected local ventures directly with global AI leaders to drive inclusive economic growth across the continent.
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