Lagos of Nigeria has emerged as the best eco friendly startups city in Africa. Lagos ranked ahead of Nairobi of Kenya, and Cape Town of South Africa. According to StartupBlink’s 2019 global startup ecosystem rankings report that analyses startup ecosystems in 1,000 cities and 100 countries, Lagos has the best startup ecosystem in Africa, followed by Nairobi and Cape Town.
The report noted that Lagos jumped 120 spots to 99th in the world, and is now a top 100 city! 2 other cities, Abuja and Ikeja have increased by 143 and 354 spots, respectively, and Ikeja has placed itself in the top three nationally after moving up two positions since 2017. Port Harcourt (653rd) has also made it’s first.
- Lagos polled 8.044, ranked 99
- Nairobi (7.918), which ranked 105.
- Cape Town is third in Africa (7.527), at 157th position globally.
- Cairo (7.177) is 177th position;
- Tunis (6.712) is 223;
- Kigali (6.19) 232;
- Accra (3.983) 244;
- Johannesburg (3.417) 248;
- Kampala (3.196) 279; and
- Casablanca (3.195) at 284 globally.
StartupBlink’s 2019 global startup ecosystem rankings report noted that Nigeria entered startup scene later than Kenya, South Africa, and Egypt, but has accelerated quickly and even nurtured a unicorn called, Jumia, an online shop for electronics, phones, and fashion.
The main challenges Lagos is facing as an Eco Friendly Startups city is an unreliable power supply and poor Internet connections
“We are confident that if the infrastructure is improved, Nigerian founders will be able to move forward for the benefit of their country and economy. Relatively stable after climbing one spot in the global rankings, Nigeria seems to be enjoying good momentum,” the report stated.
Speaking on Kenya, the report observed that the capital city of Nairobi has sprinted to 105th (passing 86 cities worldwide), and thus remains the only Kenyan city on the best eco friendly startups city in Africa.
Since 2007, Kenya’s startup ecosystem has been revolutionising mobile payments with such startups as m-Pesa. It noted that Kenya’s government has been involved in startup ecosystem development since 2013, with the launch of Konzo Techno City, a tech park project built outside of Nairobi.
StartupBlink’s report said global tech giants like Google, Microsoft, Samsung, and Intel are also located in the capital city
The report also noted that despite being one of Africa’s best eco friendly startups city, Kenya still has room to improve. The country receives far less global funding and investment and has fewer helpful government initiatives than are present in higher-ranked countries.
Kenya is now very close to overtaking South Africa as the highest-ranked African country and now ranks at 52nd. Speaking on South Africa, the report said the potential of the country is extremely high, and it is better positioned than its African counterparts to become a global eco friendly startups hub and has even managed to produce several unicorns.
The more active and positive government support is needed to reduce the difficulties facing startups and to simplify laws, helping entrepreneurs focus on what really matters in their business.
South Africa currently has only one city in the top 200 eco friendly startups cities
- Cape Town is ranked 157th after dropping 17 spots
- Johannesburg is ranked 248th after increasing 22 spots.
- South Africa is still the highest-ranked African country but is no longer in the top 50 clubs after dropping 13 spots.
In the ranking of the eco friendly startups cities, StartupBlink’s report said 3 issues were considered, including the number of startups and other supporting organisations; quality of startups and other supporting organisation, and business environment and critical mass.
The Methodology used in the selection of the eco friendly startups cities
In making sure the rankings are as accurate and objective as possible, the report was based on quantifiable data. Most of the data used while generating the rankings were either accumulated on StartupBlink over the past 5 years or were sent by the ecosystem partners in cities around the world.
Having a curated startup ecosystem map puts StartupBlink in a unique position to test and perfect their algorithm on vast sets of data. StartupBlink estimates that their core sample includes anywhere between 10%-20% of the total relevant entities in the global startup ecosystem, which provides robust reporting that they intend to continue improving over time.
StartupBlink also continues investing effort into improving the ranking algorithm. In 2019, they have added nearly a dozen additional ingredients to the ranking algorithm, greatly improving the resolution and accuracy of the rankings.
Their country rankings also partially take into account the size of the population to make sure expectations from countries with relatively low population in comparison to countries with larger populations are adjusted.