A new report by Startup Genome has shed light on both the ranking of Africa’s top startup ecosystems and the average annual salaries for software developers working in leading African tech startup ecosystems. The report highlights significant salary disparities between African countries and leading global startup hubs. While the global average tech developer salary sits at $47,000 per year, developers in top-ranked cities like Silicon Valley can earn upwards of $154,000 annually.
African Developer Salaries
Here’s a breakdown of the average annual salaries for tech developers in African top startup ecosystems according to the Startup Genome report:
- Johannesburg, South Africa: $42,000
- Nairobi, Kenya: $14,000
- Lagos, Nigeria: $11,000
- Tunis, Tunisia: $10,300
- Accra, Ghana: $5,000
- Addis Ababa, Ethiopia: $4,000
Global Comparison
The report compares these figures to leading global tech hubs:
- Silicon Valley: $154,000
- London: $78,000
- New York City: $160,000
- Tel Aviv: $101,000
- Los Angeles: $137,000
Startup Exit Timeframes
The report also delves into the average time it takes startups in these ecosystems to achieve an exit (acquisition or IPO). While the global average sits around 10 years, African startups show varying timeframes:
- Tunisia: 8.8 years on average, with only nine exits recorded in the past four years.
- Ghana: 7 years on average, with six exits in the past four years.
- Ethiopia: No recorded exits in the past four years.
- South Africa: 11.6 years on average, with 38 exits in the past four years.
- Nigeria: 6.7 years on average, with 23 exits in the past four years.
- Kenya: 7.4 years on average, with 33 exits in the past four years.
Globally, the average time for a startup to make an exit is around 10 years, with top ecosystems like Silicon Valley, New York City, and London averaging 8.9 years.
Global and Emerging Ecosystems
The report ranks Silicon Valley as the top global startup ecosystem, followed by New York City and London, which are tied for second place. Notable movements include Seoul rising to ninth place and Tokyo entering the top 10 for the first time.
In the Emerging Ecosystems Ranking, Europe leads with a 42% share in the top 100, followed by North America with 27%. Madrid and Barcelona have made significant strides, ranking first and second, respectively, in this category.
Africa’s Leading Ecosystems
Cairo, Nairobi, Lagos and Cape Town are highlighted as the top four African ecosystems. These cities are pivotal in driving the continent’s tech innovation and entrepreneurial growth.
The Startup Genome report underscores the significant disparities in software engineer salaries across different African ecosystems compared to global averages. However, it also highlights the remarkable progress and potential within these regions. As these ecosystems continue to develop, they offer exciting opportunities for both local and international investors, entrepreneurs, and tech professionals.
Jonathan Ortmans, President of the Global Entrepreneurship Network, emphasizes the importance of fostering entrepreneurial environments: “Creating more entrepreneurs is the most important thing that we can do as an ecosystem of enablers and policymakers. Entrepreneurs are naturally attracted to the most important challenges of the day and seek to apply the best ideas and technologies for solutions. The progress we make on these issues in the next decade will determine the success of the next 100 years and beyond.”
