A new report finds that nearly 73% of 2022’s cohort were still active in 2025, challenging conventional wisdom about tech 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 TechCabal Insights. The figure challenges prevailing narratives about high startup mortality rates on the continent.

The report, titled "Africa's AI Startup Landscape: Who is Building, Where, and How Many Are Still Standing," found that of 110 African AI startups tracked in 2022, only 18, or 17%, had shut down. Just one of those 18 companies had reached the growth stage before closing. The rest failed at an early stage, suggesting difficulties are concentrated in the initial phase of development.

Eight of the startups that closed were founded in 2018, indicating they entered the market before the COVID-19 pandemic and later ceased operations. Agriculture accounted for four of the defunct companies.

Three countries dominate

The report also found that Africa now has 207 AI startups operating across 17 countries, nearly double the number recorded a few years earlier. 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 sector, African AI startups are concentrated in software development, finance, agriculture and health, together accounting for 76 companies.

The number of startups operating in education grew sharply, from just two in 2022 to 14 in 2025. A new category of AI startups focused on legal services also emerged over the past four years, with six companies.

Of all African AI startups tracked, 139 remain in the early stage, 60 are in the growth phase and eight have reached maturity with proven business models. Kenya has the most advanced ecosystem, with 42% of its AI startups in the growth phase, compared with 25% in Nigeria and 24% in South Africa.

Walid Kéfi