Cape Town has officially reclaimed its position as South Africa’s leading startup ecosystem, according to the latest Global Startup Ecosystem Index 2026 released by StartupBlink.
The city recorded an impressive 39% year-on-year ecosystem growth rate, climbing 24 places globally to rank 114th in the world. The achievement also positions Cape Town as the third-highest ranked startup ecosystem in Africa and one of the continent’s fastest-growing innovation hubs.
The latest rankings reinforce the Western Cape’s growing reputation as a destination of choice for entrepreneurs, investors and technology companies seeking to scale into African and global markets.
Commenting on the significance of the result, Wesgro CEO Wrenelle Stander noted that Cape Town’s continued rise reflects a deeply interconnected innovation ecosystem.
“Cape Town's rise in the Global Startup Ecosystem Index is a strong endorsement of the Western Cape's innovation ecosystem and the collaborative efforts that continue to drive its growth. The region offers a compelling combination of entrepreneurial talent, world-class infrastructure, access to markets, and a supportive business environment that enables startups to scale and succeed. This recognition reinforces our position as a leading destination for technology investment and innovation on the African continent.”
The strong performance comes amid a period of significant growth for the region’s technology ecosystem, underpinned by increased venture capital activity, a thriving fintech sector, world-class infrastructure and a deep pool of entrepreneurial talent.
Several major investment milestones have contributed to this momentum.
Cape Town-based fintech infrastructure company Stitch continued to strengthen the region’s position as a fintech hub, securing USD 55 million in Series B funding while expanding through the strategic acquisitions of ExiPay and Efficacy Payments. The transaction activity underscores Cape Town and the Western Cape’s growing role in developing scalable financial technology infrastructure for African and global markets.
In parallel, ecosystem enablers such as UVU Africa continue to anchor the region’s innovation pipeline. Through initiatives including biotech and education technology acceleration, UVU Africa plays a critical role in translating research, skills development and early-stage innovation into commercially viable enterprises.
Reflecting on this trajectory, Western Cape Provincial Minister of Agriculture, Economic Development and Tourism Dr Ivan Meyer said the province’s innovation economy is increasingly central to its growth strategy.
“This achievement reflects the success of the Western Cape Government's commitment to building a resilient, innovation-led economy that creates jobs and opportunities for our residents. Startups play a critical role in driving economic growth, attracting investment and developing solutions to some of society's most pressing challenges. Cape Town's strong performance demonstrates that the province continues to be a destination where innovation can thrive and businesses can grow.”
At city level, the City of Cape Town continues to position itself as a globally competitive investment destination, supported by infrastructure development and business-friendly reform.
Alderman James Vos highlighted the city’s strengthening international profile: “Cape Town’s rise in the rankings shows we’re becoming a stronger place for business and innovation. Every time I meet local entrepreneurs and startup founders, I’m struck by their drive to solve real problems. Through the City’s Business Hub, we help businesses start, grow and scale. We’re also investing in infrastructure and making it easier to do business so entrepreneurs can succeed. Working with our partners, we’re creating a city that supports innovation, attracts investment and creates opportunities. We’re proud to see Cape Town recognised as one of Africa’s leading startup hubs.”
The StartupBlink report also highlights South Africa’s strong global performance in Clean Energy, ranking 12th globally, reflecting growing momentum across the region’s renewable energy and climate-tech ecosystem.
As the official tourism, trade and investment promotion agency for Cape Town and the Western Cape, Wesgro continues to work closely with ecosystem partners to attract investment, support business growth and strengthen the region’s position as Africa’s leading gateway for innovation and entrepreneurship.
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The Global Startup Ecosystem Index is an annual report published by StartupBlink, a global research platform that analyses startup ecosystem performance across countries and cities worldwide. The index ranks ecosystems based on a range of indicators including startup activity, funding availability, ecosystem connectivity and innovation output. It is widely referenced by policymakers, investors and economic development agencies as a comparative benchmark for global innovation competitiveness and entrepreneurial growth.