A new report from digital economy consultancy TechCabal Insights has mapped the AI startup ecosystem across Africa, placing Tunisia among the continent’s leading countries in the sector. The findings highlight the surprising resilience of AI ventures and pinpoint key growth areas, while also revealing a significant concentration of activity in just a few major hubs.
Quick Facts
- Tunisia ranks 6th with 11 active AI startups.
- 73% of African AI startups from 2022 are still operational.
- Nigeria, South Africa, and Kenya host 63% of the continent’s AI ventures.
Nigeria, South Africa, and Kenya Lead the Pack
The report, titled “The State of AI Startups in Africa: Who is Building, Where, and How Many Have Survived?”, identifies 207 AI startups spread across 17 African nations. Nigeria and South Africa dominate the scene with 50 and 49 companies, respectively, followed by Kenya with 31 and Ghana with 13.
Tunisia, along with Egypt, is ranked sixth, with each country hosting 11 AI startups. This data underscores a clear concentration of investment and ecosystem support in a handful of markets, with the top three countries accounting for the vast majority of all AI ventures on the continent.
Early-Stage Hurdles and Startup Resilience
Contrary to common perceptions about high failure rates, the report shows a remarkable survival rate among African AI startups. Of the companies tracked since 2022, 73% remain active into 2025.
Most of the shutdowns occurred at the pre-seed or seed stage. Out of 110 startups tracked from 2022, 18 have since closed, with only one of those having moved past the initial expansion phase. The data also suggests that the COVID-19 pandemic particularly affected companies founded around 2018.
Ecosystem Maturity and Sectoral Shifts
While the continent saw a peak in AI company creation in 2018 with 27 new launches, the pace has fluctuated since. The majority of existing startups (139) are still in the founding stage, with 60 in expansion and only 8 having reached maturity.
Kenya’s ecosystem appears to be the most advanced in terms of scale, with 42% of its AI startups in the expansion stage, compared to just 25% in Nigeria and 24% in South Africa.
Software development, financial services, agriculture, and health remain the dominant sectors. However, significant growth is visible in new areas. The EdTech sector grew from just two AI companies in 2022 to 14 by 2025, and a new LegalTech AI category has emerged with six startups.
Tunisia’s Strategic Position and Path Forward
Tunisia’s ranking confirms its solid footing in the African AI scene. However, the data highlights a critical challenge: fostering an environment that helps early-stage companies navigate their initial phases and secure the funding needed to scale. As competition intensifies across the continent, strengthening financial support and mentorship for these 11 ventures will be key to helping them transition from the founding stage to expansion and maturity.
About TechCabal Insights
TechCabal Insights is the data and research arm of TechCabal, a publication focused on technology, startups, and innovation in Africa. It provides reports, data, and analysis on the continent’s digital economy for investors, entrepreneurs, and policymakers.
Source: Tunisie Telegraph
