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Cape Town claims bragging rights for Africa’s Top Productive Tech City

by Milicent Atieno
Cape Town claims bragging rights for Africa’s Top Productive Tech City

South Africa’s city of Cape Town is apparently the most productive tech city on the continent of Africa.

That is according to a report commissioned by the Allan Gray Orbis Foundation, Wesgro, and the Cape Innovation & Technology Initiative (CiTi). The report says that the tech sector in Cape Town employers between 40,000 to 50,000 people, who are all employed by entrepreneurial ventures within and around the City.

The report titled ‘Evaluation & Network Analysis of the Cape Town-Stellenbosch Tech Sectorwas conducted by Endeavor Insights and aimed at mapping out the current state of tech entrepreneurship landscape in Cape Town. The report also unearthed various untapped tech entrepreneurship reports in the City.

According to the report, the tech entrepreneurship scene in Cape Town employs more than double the number of people the sector employs in Lagos and Nairobi combined. The City has between 450-500 entrepreneurial companies, all of which employ about 40,000 – 50,000 people. While the tech entrepreneurial sector in Lagos and Nairobi employes just 9,000 and 7,000 people.

Apparently, three percent of tech companies in Cape Town have reached scale, compared to just one percent in Nairobi and two percent in Lagos. The report recommends that the tech entrepreneurial companies in Cape Town still have room for growth, and needs further investment into talent development to unlock full potential.

As an integral catalyst for the ecosystem’s growth, we are hearing a similar challenge across African tech sectors-sourcing specialized talent for digital teams is seriously limiting business growth,” said Ian Merrington, the CEO at CiTi.

The report was great validation that the CapaCiTi Tech Skills and Job-readiness programs we drive are completely market relevant to assist entrepreneurs, corporates, and governments to understand and better solve their talent constraints to growth.”

The tabled report unveiled that there are at least 500 entrepreneurial companies in the Cape Town tech scene, 20% of whom are within the e-commerce and SaaS space. Fintech companies make up 15% of the tech entrepreneurial companies.

The dynamism, productivity, and high-impact companies of Cape Town’s tech sector make it stand out as one of the most successful models in sub-Saharan Africa. It has generated the continent’s most highly valued tech company as well as other software businesses that have reached scale, exited for significant sums, or grown to become leading businesses on the continent,” said Rhett Morris, director of Endeavor Insight.

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