Cape Town currently stands out as one of the world’s fastest-growing FDI destinations. This according to the ‘African Tech Ecosystems of the Future 2021/22’ report released by fDi Intelligence.
Among the 8 African countries and cities that submitted entries were Nigeria (Lagos), Zambia (Lusaka), South Africa (Cape Town), Tanzania (Dar es Salaam), Kenya (Mombasa), Tunisia (Tunis), Rwanda (Kigali), and Egypt (Cairo). The entries were judged by their ability to support regulation, infrastructure, and funding.
South Africa took the overall top spot, including the top spot on Economic Potential, Business Friendliness, and Start-Up Status. Cape Town took second place after Cairo in the analysis of FDI strategy. Nevertheless, Cape Town offers a great startup ecosystem for the evolution of ecosystems. Cape Town has the ‘Innovation District’ which is nationally funded and looks to build a strong tech and innovation economy.
The greater Western Cape has a robust tech ecosystem that dubbed the Cape Town – Stellenbosch corridor with over 450 tech firms that directly employ 40,000 people.
Government players alongside the private sector teamed together to form the Cape Town Tech Capital of Africa” brand to promote the growth of the tech ecosystem across Western Cape and Cape Town.
Wesgro points out other aspects that make Cape Town’s Africa tech capital as; over 550 tech startups by end of 2020, over 46 deals worth $88 million, venture capital firms, developer talent, co-working spaces, coffee culture, the concentration of high-density digital skills training academies of Africa, favorable rank on World Bank research report on Ease of Doing Business, and four top world-class universities.