A new report shows that nearly 73% of the 2022 cohort were still active in 2025, challenging conventional wisdom about technology failure rates.
Nearly three-quarters of African artificial intelligence startups identified in 2022 remained active in 2025, according to a report released on April 24, 2026, by digital economy consultancy TechCable Insights. This figure challenges prevailing narratives about high startup mortality rates on the continent.
The report, titled “Africa's AI Startup Landscape: Who's Building, Where and How Many Are Still Standing,” found that only 18, or 17%, of the 110 African AI startups tracked were shut down in 2022. Of those 18 companies, only one company reached the development stage before being shut down. The rest failed in the early stages, which suggests that the difficulties are concentrated in the early stages of development.
The eight startups that closed were founded in 2018, indicating that they entered the market before the COVID-19 pandemic and ceased operations afterward. Of the closed companies, four were related to the agriculture sector.
three countries dominate
The report also found that Africa now has 207 AI startups operating in 17 countries, almost double the number recorded a few years ago. Three countries account for 63% of those companies: Nigeria (50), South Africa (49) and Kenya (31). Ghana (13), Egypt (11) and Tunisia (11) follow.
The pace of AI startup creation on the continent has fluctuated in recent years, peaking at 27 new companies in 2018 before slowing. By subregion, West Africa leads with 71 startups, ahead of Southern Africa (53), East Africa (50) and North Africa (26).
By region, African AI startups are concentrated in software development, finance, agriculture and health, comprising 76 companies in total.
The number of startups working in education grew rapidly, from just two in 2022 to 14 in 2025. A new class of AI startups focused on legal services has also emerged, with six companies emerging in the last four years.
Of all African AI startups tracked, 139 are in early stage, 60 are in development stage and eight have reached maturity with proven business models. Kenya has the most advanced ecosystem, with 42% of its AI startups in the development stage, compared to 25% in Nigeria and 24% in South Africa.
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