Why Zimbabwe’s Startup Ecosystem Is 117th In World Rankings And What Needs To Be Done
Startups are critical engines of job creation and economic diversification—precisely what Zimbabwe desperately needs.
By Trevor Ncube
The Startup Genome's Global Startup Ecosystem Report 2025 delivers a jarring wake-up call to Zimbabwe: we've dropped eight ranks to 117th out of 118 countries surveyed. This isn't just another statistic—it's a damning indictment of our readiness for the economic transformation that startups could deliver.
While the global startup ecosystem contracted by 31%, Zimbabwe's position reveals a more troubling reality. With only 23 recorded startups, we're not even participating meaningfully in the global innovation economy. This matters profoundly because startups are critical engines of job creation and economic diversification—precisely what Zimbabwe desperately needs.
The global downturn masks important regional variations. Asian and sub-Saharan African ecosystems showed resilience with only a 17% decline, proving that emerging markets can weather global storms when they build the right foundations. Meanwhile, the AI revolution is reshaping everything: artificial intelligence now commands 40% of all global venture capital, yet 90% of this funding flows only to the United States and China. Countries that fail to implement AI-native policies risk permanent exclusion from the new economy.
Our challenges are well-documented but worth restating starkly. Hyperinflation and currency volatility create an environment where planning beyond the next quarter becomes impossible. High corruption and bureaucratic maze-running exhaust entrepreneurs before they can focus on building products. Our massive informal economy—64% of all economic activity—signals that formal business structures offer little incentive compared to operating in the shadows.
Access to capital remains the ultimate bottleneck. The National Venture Capital Company of Zimbabwe acknowledges that venture capital is essentially new here, while our entrepreneurs struggle to secure even basic funding. Brain drain continues bleeding our most capable minds, leaving behind an ecosystem starved of the technical talent that drives innovation elsewhere.
Yet the most damaging factor may be institutional indifference. At the 2023 Ideas Festival in Nyanga, tech startup founders emphatically declared that Zimbabwe lacks an ideal startup ecosystem. The startup entrepreneurs panel of Gugu Siso, Brian Munyawara, Ryan Katayi and Victor Mapunga were unequivocal there is no startup ecosystem in Zimbabwe.
The young panellists criticized both government inaction and the private sector's failure to understand or support startups through markets and venture funding. The Ideas Festival communique called for financial and legal guardrails—basic infrastructure that remains absent two years later.
Successful ecosystems worldwide share clear patterns that Zimbabwe can emulate. London's slip to third globally and Boston's re-entry into the top five demonstrate that rankings are fluid—but only for countries that act decisively. Paris surged to 12th place by fostering native AI startups and creating an environment for unicorn companies to emerge. Philadelphia jumped 12 places by focusing relentlessly on Life Sciences, proving that strategic specialization trumps scattered efforts.
The lesson is unmistakable: broad approaches fail, while targeted excellence in specific niches creates defensible competitive advantages. Zimbabwe already shows potential in fintech, agritech, and cleantech through initiatives like Old Mutual's Eight2Five Innovation Hub, but we lack the focused support these sectors need to scale globally. The Eight2Five Innovation Hubs partnership with the Ideas Festival has profiled innovative startups over the past two years and more will be on display this year.
The global AI surge represents both our greatest opportunity and most urgent threat. While Zimbabwe has reportedly drafted a national AI policy framework, it remains hidden from public view and unimplemented. We lack dedicated AI legislation or expert bodies to guide development. This institutional lethargy becomes catastrophic when 90% of AI funding concentrates in just two countries, leaving others fighting for scraps.
Zimbabwe needs AI-native companies—businesses built from the ground up around artificial intelligence, not traditional companies adding AI features. This requires specialized talent, compute resources, and tailored funding models that our current ecosystem cannot provide.
The fourth Ideas Festival, convening this October in Nyanga, will among other issues, focus on artificial intelligence precisely because we recognize this inflection point. But recognition without action remains worthless. Our young entrepreneurs already demonstrate remarkable resilience, starting where they are with what they have. They deserve more than inspirational rhetoric—they need concrete support.
Government must finally deliver the "Startup Act" that streamlines business formation, implements AI-native policies, and provides intellectual property protection. The promised AI framework must emerge from bureaucratic limbo into public implementation.
The private sector must evolve beyond risk-averse lending to embrace patient capital models. Corporate venture arms should emerge to bridge the funding gap that strangles promising startups. High-net-worth individuals and pension funds must consider local investment opportunities beyond traditional assets.
The Ideas Festival's core message to young Zimbabweans remains: start where you are with what you have. But this counsel comes with urgent recognition that individual brilliance cannot overcome systemic failure. We need macroeconomic stability, streamlined regulations, diversified funding, and strategic sector focus.
Zimbabwe's startup ecosystem doesn't need to reach Silicon Valley standards overnight. It needs to stop sliding backward while the world accelerates forward. The GSER 2025 provides our blueprint: strategic specialization, proactive governance, and diversified capital. The question isn't whether we can build a thriving innovation economy—it's whether we'll choose to do so before opportunities disappear entirely.
Our entrepreneurs are ready. The global template exists. The only missing ingredient is institutional will to transform inspiration into implementation. Zimbabwe's economic future depends on answering this call.
Trevor Ncube is the Founder & Managing Partner of Trevor & Associates trevorandassociates.com and the Host of In Conversation With Trevor
That we are 117th out of 118 countries surveyed is damning. No question about that.
A few things from your article:
The massive informalization of our economy could, in fact, be a huge opportunity for people with startup ideas - EcoCash formalized our informal way of sending money.
Startups do not need to solve problems for formal business - EcoCash, Mukuru, WhatsApp, etc are solving problems for the ordinary person on the street, not formal business. In any case, formal businesses are too rigid and content with their current business models.
Holding the Ideas Festival in Nyanga is one of the bad ideas for growing startups because Nyanga is not accessible to the recent graduate or the ordinary guy on the street whom we should be encouraging to build a startup. Nyanga sends the message that getting funding is reserved for the elite (those that can afford to travel and stay in Nyanga). The festival should be held in places accessible to lots and lots of ordinary people, such as Harare, Bulawayo, Chitungwiza, Mutare, etc.