The Salary Guide 2025: How Much Do Tech Workers Make in African Startups?

In 2025, African tech startups are seeing notable shifts in salaries as demand for skilled professionals rises. Here’s what you need to know:

Developer Salaries: South Africa leads with software engineers earning $55,452 annually in Cape Town, while Lagos developers earn $7,500–$11,000.
Data Scientists: Entry-level professionals in South Africa make $1,800/month, with senior experts earning $4,800+.
Product Managers: Annual pay ranges from $40,130 for entry-level roles to $69,653 for senior roles in South Africa. In Nigeria, salaries are lower, averaging $2,300/month.
Regional Variations: Nairobi developers earn around $14,700 annually, nearly double Lagos salaries but less than Johannesburg or Cape Town.
Remote Work Impact: Remote roles offer global opportunities, often exceeding local pay.
High-Demand Skills: AI, cloud computing, and cybersecurity are driving higher wages.

African startups are adjusting pay strategies due to increased funding, remote work, and a growing skills gap. Salaries vary widely by region, role, and expertise, with South Africa offering the highest compensation for many tech jobs.

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Salary Ranges for Tech Roles in 2025

Tech salaries across African startups vary widely depending on the role, level of experience, and location. Understanding these differences is key for both job seekers and employers navigating the fast-changing tech landscape.

Developer Salaries by Tech Stack

When it comes to developer salaries, compensation across African startups shows clear differences by region and tech expertise. South Africa leads the continent, with Cape Town offering software engineers an average annual salary of $55,452, ranging from $33,523 to $68,681. Johannesburg follows with an average of $47,116, while Pretoria sits at $31,392.

Experience plays a huge role in earnings. Junior web developers across Africa earn about $1,931 per month, while senior developers make a significant leap to $7,368 monthly – a nearly fourfold increase.

In Nigeria, the average annual salary for developers is $7,255, with senior-level professionals earning up to $14,182. Expertise in specific tech stacks can also influence salaries, as certain programming languages and frameworks are more in demand.

Country	Average Hourly Rate (USD)
South Africa	$19.85
Kenya	$15.94
Morocco	$9.52
Nigeria	$8.96
Zimbabwe	$7.15

Remote work has opened up opportunities for African developers to secure global salaries, often earning far more than local startups can offer. These insights help both job seekers and companies align expectations with market realities.

Data Scientist Pay Trends

Data science roles in Africa show a clear link between experience, education, and pay. South Africa serves as a benchmark for the continent. Entry-level data scientists (0–3 years of experience) earn around $1,800 per month (R30,000). Mid-level professionals with 4–9 years of experience see their monthly pay rise to $2,580 (R43,000), while senior data scientists with 10–20 years of experience command $3,540 or more (R59,000+). Those with over 20 years of experience can earn $4,800+ monthly (R80,000+).

Educational background is another key factor. Data scientists with bachelor’s degrees earn about $2,034 per month (R33,900), while those with master’s degrees see higher pay at $2,796 (R46,600). PhD holders earn the most, with monthly salaries averaging $4,584 (R76,400).

Location also matters. Sandton, Gauteng, leads with an average annual salary of $54,212 (R903,399), followed by Johannesburg at $50,807 (R846,774) and Cape Town at $48,879 (R814,655). Across South Africa, data scientist salaries range from $14,400 to $48,000 (R240,000 to R800,000) annually, depending on experience, skills, and company size.

The growing investment in data infrastructure across industries ensures a steady demand for skilled professionals, making data science an attractive career path.

Product Manager Salaries by Region

Product managers in African startups experience distinct salary dynamics depending on region and experience level. South Africa offers the highest compensation, with average annual salaries reaching $55,870 (R931,180).

Entry-level product managers (1–3 years of experience) in South Africa earn about $40,130 annually (R668,823), while senior managers with 8+ years of experience can command $69,653 (R1,160,887). In Nigeria, product managers earn an average of $2,300 per month (NGN 383,333), with annual salaries ranging from $12,613 to $35,180 (NGN 210,208 to NGN 586,333). In Lagos, entry-level product managers earn between $13,866 and $16,146 annually (NGN 231K–NGN 269K).

City-level differences are also notable. In South Africa, Sandton leads with monthly salaries of $3,172 (R52,864), followed by Johannesburg North at $3,085 (R51,415) and Centurion at $2,974 (R49,542). Remote senior product managers in South Africa typically earn $25,200 annually (ZAR 420k).

The monthly salary range for product managers in South Africa spans from $2,220 to $5,220 (ZAR 37K–ZAR 87K), with a median of $3,360 (ZAR 56K). These variations reflect factors like company size, funding stage, and individual experience, giving both candidates and employers a clearer picture of the market.

Salary Comparison Across African Tech Hubs

Africa’s tech hubs present a wide range of salaries, shaped by local economies, the cost of living, and industry trends. These differences are important for job seekers deciding where to advance their careers and for companies determining where to establish operations. Let’s dive into how these hubs stack up against each other.

Lagos vs. Nairobi Salary Differences

Lagos, often seen as a powerhouse for African startups, surprisingly offers some of the lowest salaries for software developers worldwide. Developers in Lagos earn between $7,500 and $11,000 annually, while their counterparts in Nairobi make nearly double, with salaries ranging from $14,000 to $14,700.

To put this into perspective, Lagos developers earn just 4.8% of what a Silicon Valley developer makes. A mix of factors, including local economic conditions and the cost of living, heavily influences these figures. Over time, Lagos salaries have fallen behind those in other regions. Comparatively, they are on par with what developers in Kerala, India, earn, highlighting the challenges of staying competitive in this market.

In Kenya, the tech industry extends beyond software development. For instance, telecom engineers in the country earn between Ksh 50,955 ($393.28) and Ksh 145,586 ($1,123.65) per month.

Next, let’s explore how salaries vary in South Africa’s leading tech hubs.

Johannesburg and Cape Town Pay Trends

South Africa’s two major tech cities, Johannesburg and Cape Town, showcase distinct salary trends influenced by their unique industries and cost-of-living differences. While Cape Town leads in overall developer salaries, Johannesburg offers developers 9.7% more purchasing power when adjusted for living expenses.

Cape Town is known for its vibrant startup scene, with developers often working on innovative products in smaller companies. On the other hand, Johannesburg attracts developers to larger corporations, particularly in finance and consulting. As the financial hub of the country, Johannesburg also boasts an impressive 0.94 AI-related jobs per 100,000 people, compared to Cape Town’s 0.09 AI job openings per 100,000 people.

Interestingly, smaller cities are starting to rival these traditional hubs. Stellenbosch has emerged as a top destination for tech talent, offering 36 tech-related jobs per 100,000 people, surpassing both Johannesburg and Cape Town. Midrand follows closely with 30 tech jobs per 100,000 people, while Johannesburg and Cape Town provide 24 and 19 such jobs, respectively.

Here’s a quick look at how these cities compare:

City	Tech Jobs per 100,000 People	Primary Industry Focus
Stellenbosch	36	Tech startups, education
Midrand	30	Corporate tech, logistics
Johannesburg	24	Financial services, AI
Cape Town	19	Startups, product development

When it comes to high-paying roles, "Engineering Manager" tops the list with an average annual salary of ZAR 840,000. Senior roles, such as "Senior Developer" and "Senior Java Developer", follow closely, both earning around ZAR 813,831 annually.

"Not only are average salaries for managerial staff higher, but there are more varied jobs in Gauteng across a number of different sectors…If you’re an entrepreneur, Joburg is also the place to be because of the high concentration of wealth and the opportunities for doing business there."
– Charles Edelstein, Executive Placements Director

Cairo’s Tech Salary Landscape

In North Africa, Cairo offers a distinct salary environment shaped by its strategic location and relatively low cost of living. Telecom engineers in the city earn an average of EGP 365,410 ($7,170.73) annually, while consultants make around EGP 284,324 ($5,579.52) per year.

Cairo has firmly established itself as a key player in Africa’s tech ecosystem, ranking among the top 100 startup cities globally in 2024. The city benefits from a lower cost of living and a tiered income tax system, with rates ranging from 0% to 27.5% depending on earnings.

Government initiatives further boost the tech sector, offering tax incentives and encouraging foreign investments in areas like renewable energy and technology. Large infrastructure projects, such as the New Administrative Capital and expanded transport networks, have also drawn significant local and international interest.

However, compared to other African hubs, Cairo’s software engineer salaries lag behind, averaging $25,000 annually. While this figure is lower than those in Lagos and Nairobi, Cairo’s strategic position – connecting Europe, Asia, and the Middle East – positions it as a growing hub with considerable potential for the tech industry.

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What Affects Tech Salaries in African Startups

Several factors play a significant role in shaping tech salaries at African startups. From funding stages to specialized skills, these elements influence how compensation is structured and provide insight into career and hiring decisions. Let’s break down the key drivers.

How Funding Stages Affect Pay

The funding a startup secures has a direct impact on its ability to offer competitive salaries. Between January and May 2025, African startups raised over $1 billion, marking a 40% increase compared to the same period in 2024. Nearly half of the 61 disclosed deals during this time were early-stage investments, with amounts ranging between $250,000 and $1.8 million. Examples include Ghanaian fintech Liquify and Nigerian HR-tech company PaidHR, both of which secured funding within this range. Notably, debt financing accounted for 28.5% of the total funding raised in 2025, highlighting its growing role in startup financing.

Company Size and Pay Levels

Larger, more established startups tend to offer better salaries compared to their early-stage counterparts. For instance, MTN Group’s 2022 financial report provides a clear example of this scale effect. The company allocated 12.7 billion Rand (approximately $746.8 million) to staff costs, which represented about 6.1% of its 207 billion Rand total revenue. With 19,295 employees as of October 2023, this translates to an average annual staff cost of approximately $38,700 per employee.

"Teams often think that hiring more people will solve all their problems. This isn’t always true, as redundancy can set in with a bloated workforce. Each team must understand that every new hire brings additional costs, such as taxes, pensions, and health insurance, beyond their net salaries."

– Chioma Daniel, Head of Finance at TalentQL/AltSchool Africa

High-Demand Skills and Higher Pay

Specialized skills are a major driver of higher salaries in African startups. According to HubSpot‘s Job Skills report, demand for generative AI expertise has surged by 866% year-over-year. Globally, the AI sector is projected to exceed $400 billion by 2025, while the big data analytics market is expected to reach $655 billion by 2029. Similarly, the cybersecurity market is on track to surpass $30 billion by 2031.

Mobile development also remains a key area, driven by Africa’s increasing smartphone penetration, which reached 65% in 2025. Mobile internet users have doubled since 2015, and mobile money transactions now exceed $490 billion annually. Additionally, with 51.9% of developers reportedly using AI tools, proficiency in AI-related technologies is becoming indispensable across tech roles.

Remote Work Impact on Salaries

Remote work policies are reshaping how salaries are structured at African startups. Hybrid work models are becoming the norm, offering a mix of remote flexibility and the benefits of in-person collaboration. While some companies adjust salaries based on an employee’s location, others are rethinking their compensation strategies altogether to attract and retain top talent in this evolving work environment.

Equity and Performance Pay Models

Many African startups are adopting alternative pay structures, such as equity and performance-based bonuses, to supplement base salaries. These models align employee incentives with company success and are increasingly seen as essential components of total compensation. However, the value and structure of these arrangements often vary depending on a company’s growth stage and market conditions. Together, these factors create a dynamic and evolving compensation landscape that reflects both market realities and innovative pay practices.

2025 Tech Salary Trends and Insights

As African startups continue to grow and evolve, 2025 brings new shifts in tech compensation. These trends build on existing salary drivers while introducing fresh dynamics that reflect the maturing ecosystem.

More Funding Drives Salary Growth

The first half of 2025 saw a notable increase in funding: equity investments surged by 79% to $950 million, while debt funding grew by 55% to $400 million. This influx of capital is pushing salaries higher, especially in sectors like fintech, health tech, and logistics. These areas are drawing significant venture capital, fueling their rapid expansion.

"We are just at the beginning of the Africa tech growth story…There is huge untapped demand and significant improvement in talent across the ecosystem, with angel investment spurring that growth. We are also seeing rapid adoption in tech platforms. The world will see several big success stories coming soon."
– Lexi Novitske, Managing Partner of Norrsken 22

While funding levels are boosting pay, the landscape remains uneven. In 2024, venture capital deal volume dropped by 22%, total investment fell by 28%, and the number of active investors decreased by 21%.

Remote and Hybrid Work Changes

Hybrid work has become the norm, with Africa’s freelance workforce growing by 55% since 2020. A Gartner study predicts that by 2027, over half of African professionals will work remotely or in hybrid roles. This shift is reshaping career opportunities, with 79% of African youth believing remote work offers better prospects than traditional office setups.

To support this transition, companies are offering tech stipends and reimbursing co-working space expenses to address infrastructure challenges. Additionally, 64% of businesses in Sub-Saharan Africa identify digital transformation as a major driver of job creation.

"The future of work in Africa is not just digital – it’s human. We must invest in people, not just processes."
– Justin Macharia, HR Director, Workforce Africa

Performance-Based Pay Growth

Startups are moving beyond basic salary structures, adopting performance-based pay models that include equity options. This trend is particularly evident in high-demand roles like AI specialists, data analysts, and cybersecurity experts . Companies are focusing more on sustainable business models and profitability rather than chasing rapid growth.

Diversity, equity, and inclusion (DEI) initiatives are also gaining traction, with 77% of African businesses prioritizing these efforts. The rise of remote work has played a significant role in driving this focus.

Salary Benchmarking Tips

Tech hubs such as Lagos, Nairobi, and Cape Town still offer higher salaries, but as remote work becomes more common, location-based pay differences are starting to fade. Employers are encouraged to prioritize skills and potential for growth when hiring .

For job seekers, developing expertise in high-demand fields can be a game-changer. For instance, AI tool usage among developers in South Africa jumped from 33% to 51.9% within a year. With Africa’s digital economy expected to reach $180 billion by 2025, tech roles are poised for further salary growth.

"Africa’s economic transformation and business potential are more substantial than many think."
– Landry Signe, Senior Fellow at the Brookings Institution

These trends paint a dynamic picture of the evolving tech salary landscape in African startups, offering insights into how professionals and employers can navigate this shifting environment.

Key Takeaways on African Startup Tech Salaries

The 2025 salary outlook for African tech workers highlights striking regional pay gaps. For instance, software developers in Johannesburg earn an average of $42,000 annually – nearly six times more than their counterparts in Lagos, who make just $7,500. Despite Lagos being a major tech hub with a metro population of 17.16 million, the disparity reflects differences in local economies. Nairobi falls in between, with developers earning $14,700, showing slight growth from $14,000 in 2024.

Johannesburg’s higher salaries are tied to its stronger currency and well-established financial sector. The city boasts 12,300 millionaires compared to Lagos’ 4,200, further illustrating its economic advantage. Meanwhile, skills shortages are driving up wages for specialized roles. In South Africa, 63% of cybersecurity positions remain unfilled. Entry-level data scientists earn around R364,803 annually (about $19,400), while full-stack developers can make between R60,000 and R105,000 monthly (roughly $3,200 to $5,600).

Remote work is also reshaping the landscape, with 38% of African developers now working remotely. This trend is reducing location-based pay differences and opening up global opportunities for tech talent. Additionally, funding stages play a critical role in salary structures. Startups with more investment can afford to offer competitive pay, making high-demand skills like cloud services, cybersecurity, and data science especially lucrative. The average African developer, aged 29 with approximately 1.5 years of experience, represents a young and dynamic workforce.

With salary budgets expected to increase by 6.7% in 2025, timing career moves strategically could lead to significant financial gains. Employers, meanwhile, are adjusting to the competitive market by incorporating equity packages, performance-based pay, and expanded benefits. However, the gap between graduate skills and employer needs highlights the urgency of investing in targeted training programs.

Although regional disparities persist, trends like remote work, increased funding, and talent mobility suggest that compensation across Africa’s startup ecosystem is on the rise.

FAQs

How is remote work shaping salaries for tech professionals in African startups?

Remote work is reshaping salary patterns for tech professionals in African startups by opening doors to global job markets and driving up the demand for digital expertise. Many African remote workers are now earning competitive wages, with some developers bringing in around $22 per hour. This trend has provided tech talent across the continent with access to international opportunities, often resulting in higher pay compared to local positions.

Moreover, remote work has introduced flexible pay structures, helping startups attract skilled professionals while remaining competitive. As remote work continues to grow, it’s creating a more dynamic salary environment, offering African tech workers higher earning potential and increased global exposure.

What causes salary differences for tech workers across various African countries?

Salaries for tech professionals in African countries can vary widely, and several factors contribute to these differences. One major influence is the state of the local economy. Countries with stronger economies and stable currencies generally offer better pay. Similarly, regions with well-developed digital infrastructure and vibrant tech ecosystems – such as Johannesburg or Nairobi – often provide higher salaries compared to areas where the tech industry is still evolving.

Other important elements include the availability of skilled workers, the extent of startup funding and investment in the region, and government policies that either encourage or restrict growth in the tech sector. Together, these factors create significant differences in compensation across the continent, with certain cities emerging as tech hotspots while others lag behind in offering competitive pay.

What tech skills are most in demand at African startups in 2025, and how do they affect salaries?

In 2025, skills like AI/ML, data science, cybersecurity, cloud computing, mobile app development, and blockchain engineering are among the most in-demand within African startups. These roles play a key part in driving innovation and helping businesses grow, making them highly valued throughout the startup ecosystem.

Experts in fields such as AI/ML and data science tend to command higher salaries, particularly in tech hubs like South Africa and Nigeria, where the demand for skilled professionals surpasses the available talent pool. Compensation also varies depending on factors like the size of the company, its funding stage, and the complexity of the job. To attract the best candidates, startups are offering competitive pay packages.