The Silicon Valley in South Africa has over 450 technology companies and employs more than 40,000 people!

Anddrea Grinnell
3 min readSep 21, 2022

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Cape Town has been ranked as one of the fastest growing foreign direct investment regions in the world, according to a report by fDi Intelligence, a financial times group data division. sale qatar

South Africa was also the first ranking in South Africa in terms of economic potential, startup status and business friendliness.

In addition to the highest number of foreign direct investment (FDI) projects in the software and IT services sectors, the second highest number of start-ups has been recorded in South Africa since Nigeria.

Cape Town was second in Cairo to the FDI strategy, following an impressive initiative to build the infrastructure needed for a flourishing technology ecosystem.

“Western Cape is a robust technology ecosystem that extends beyond Cape Town,” stated Wesgro, the official tourism, trade and investment development agency of Western Cape.

“The Cape Town — Stellenbosch corridor consists of 450 technology companies employing over 40,000 people, which makes the ecosystem larger than the combined Nairobi and Lagos.”

Additional important aspects that make Cape Town ‘Africa’s technological capital’ include:

Tech start-ups: by the end of 2020, Cape Town had 550 tech enterprises with more than 40,000 employees in the tech industry.

Investment: In 2020, 46 dealings, the highest investments made in South Africa, totalled $88 million (R1.2 billion), disclosed investments, have been injected into technology start-ups in Cape Town.

Venture capital companies: Western Cape has the highest number of venture capital enterprises, which makes access to funding easier for start-ups.

The Western Cape has more than 30 co-working spaces, the largest in Africa and 715 free WiFi spaces alone in Cape Town.

Developer talent: 38% of total developers in South Africa are in Cape Town, which is the country’s highest concentration of developers.

Cape Town has a deep, diverse coffee culture through 100s of stylish outlets.

EdTech Hub from Africa: Cape Town has a high number of digital skills training academies and is the place of choice for EdTech companies which build content for organizations and educational institutions all over the world.

The University of Cape Town retained its place as the top university in Africa, while Stellenbosch University is the 3rd best university in the World University Rankings in 2021. Students from all over the world come to Cape Town to study, with many people attracted to the growing technological ecosystem.

Easy to do business: According to the latest World Bank research report on Doing Business in South Africa, Cape Town is ranked among the country’s leading metropolitan cities in terms of business convenience.

Cape Town also boasts a series of successful start-ups that demonstrate the diversity of emerging companies across this sector, including Aerobotics, a drone-enabled data analysis company that helps farmers to gain deeper insights into their earnings and their land uses.

Others include Yoco, a point-of-sale payment provider for small companies, Sweepsouth, an informal employment company and many others.

“The fDi Intelligence report ranking represents a boost for the confidence and confidence of the digital and technology sectors and proves that efforts by the Government of West Cape, along with our partners in Cape Town and Wesgro, are achieving a desired result,” said Western Cape Finance and Economic Opportunities Minister David Maynier.

“The attraction of foreign direct investment to encourage job creation is key to our Western Cape economic recovery.”

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