Top Incubators and Accelerators in South Africa

Boasting the most industrialised and diverse economy in Africa, South Africa has evolved dramatically over the last two decades. Shaped largely by its rich natural resources and dynamic labour force, the country’s socio-political history makes for an absolute melting pot of culture unlike anything you’ll find anywhere else in the world.

South Africa’s economy is not only diverse, it’s also one of the largest on the continent, second only to Nigeria. Thus, it plays an essential role in regional trade, economic integration and investment in Africa, among other things.

The country’s strengths lie primarily in its wealth of natural resources, developed infrastructure (relative to the rest of the continent) and diversified economic base. However, it’s not without its challenges – with a high inequality rate, a lot of unemployment and political instability, among other things, South Africa is home to an incredibly complex economic environment.

Regardless, due to its relative strength and success in Africa and the Southern Hemisphere too, South Africa has emerged as a promising location for startups. Over the last two decades or so,  more and more young entrepreneurs are taking risks and bursting onto the startup scene. Thus, in more recent years, an increasing number of accelerators and incubators have started to emerge too.

 

South Africa’s Startup Ecosystem

 

South Africa has an undeniably complex past which is mostly accountable for its unique economic conditions and startup landscape today.

The first few years of the millennium saw the rise of the country’s first wave of tech startups, many of which were supported by government-led initiatives including the likes of the Innovation Fund. However, a persistent problem in the country has always been a lack of access to venture capital.

These young startups persisted throughout the decade, establishing themselves in their different industries and achieving great success.

It was around the early 2010s that local incubators and accelerators began to pop up in South Africa, with organisations like the Cape Innovation and Technology Institute (CiTi) and events like the AfricaCom Summit putting the country on the global tech map.

By 2021, South Africa had its first unicorn – a privately owned business valued at over $1 billion – in Go1, and since then, the economy has seen increased funding from both local and international investors.

 

South African Startups: Advantages and Challenges

 

With such a unique environment and socio-political history, it’s to be expected that the country’s startup ecosystem involves both positive and negative aspects that need to be considered.

The primary advantages of launching a startup in South Africa include:

• Skilled Workforce
• Cost-Effective Labour
• Diverse Market Opportunities
• Access to African Regional Markets
• Strong Government Support

Of course, the country faces a fair number of significant challenges too, all of which have a real impact on emerging startups:

• High Unemployment Rates
• Regulatory Hurdles
• Limited Access to Venture Capital
• Regulatory Hurdles
• Loadshedding
• Poor Infrastructure In Rural Areas

Within this complex environment, however, business incubators and accelerators have started to emerge at an impressive rate, making a significant and tangible contribution to the country’s starup environment.

 

Top Incubators and Accelerators in South Africa 

 

There are plenty of indicators that tend to be seen as signs of growing economic health and general success, but two of the most significant indicators include the emergence of unicorns and an increase in incubators and accelerators within a country.

Of course, the latter greatly contributes to achieving the former, and South Africa has seen a growing number of effective and successful incubators and accelerators popping up over the last decade or so.

 

1. The Cortex Hub

 

 

The Cortex Hub, founded in the Eastern Cape of South Africa, is committed to encouraging innovation in young businesses in order to help these companies make a difference in their communities. By nurturing the growth of socially impactful startups, the Cortex Hub aims to contribute meaningfully to a culture of innovation that is inclusive, diverse, collaborative, transparent and accessible.

With a focus on tech-driven startups, the Cortex Hub runs both an incubator and an accelerator programme. Through these programmes, they offer mentorship, office space, networking and specialised training labs.

 

 

2. Savant

 

 

One of the first incubators founded in South Africa, Savant was launched in 2005 and is based in Cape Town. The organisation is focused on investing in early-stage startups in the hardware-technology industry from all over the country.

As of the most recent numbers, Savant has made over 57 investments and has more than 18 successful exits to its name.

 

3. Black Umbrellas

 

 

Black Umbrellas is a Johanesburg-based incubator firm that places most of its focus on training and development for both entrepreneurs and startups more generally. Its emphasis is on small, medium and micro enterprises.

Founded in 2006, Black Umbrellas is committed to not only upskilling entrepreneurs but also providing mentorship and networking for young, emerging professionals.

 

4. Impact Amplifier

 

Based in Cape Town, South Africa, Impact Amplifier is an accelerator firm that was founded in 2011. The company operates very much within the country’s specific economic conditions, providing grants to companies in food, energy, education, healthcare, housing and environmental sectors, among other things.

Some of the company’s most significant investments were in companies like Phyto Pro and, most recently, Ambani Africa in 2022.

 

5. Launch Lab

 

 

LaunchLab is a South African incubator and accelerator organisation that is based in Stellenbosch in the Western Cape. Working with companies in a broad range of industries – including agritech, healthtech and fintech – LaunchLab provides access to funding opportunities, strategic partnerships and mentorship.

One of the core principles behind LaunchLab is its establishment of a collaborative environment, helping entrepreneurs link up with industry experts, corporate partners and academic resources too.

 

6. Fetola

 

 

Fetola is an accelerator and incubator firm (also referred to as a management consulting firm) founded in 2006 and based in Cape Town, South Africa.

The core objective of the organisation is to help create and deliver impactful enterprise and supplier development solutions that can help build sustainable businesses and also create jobs all around the world.

Fetola’s focus is on financial services and government-related sectors, among others.

 

7. TuksNovation

 

 

Launched in 2018, TuksNovation is a technology business incubator that provides companies with specialised product and business development support to aid their startup journies.

With a core connection to Tuks University, TuksNovaition collaborates with student entrepreneurial ventures and challenges, providing innovative and ambitious students with the chance to engage with the startup community.

On the other hand, it also gives corporates access to new and exciting young startups, creating a healthy network.

8. Injini

 

 

Founded in 2017, Injini is a Cape own-based incubator firm. The company focuses mostly on African-based startups that operate within the education sector.

Its mission is to improve education across sub-Saharan Africa, and it’s actually one of very few industry-specific incubators in the region.

Working with early-stage startups, Injini addresses educational challenges across the board, including affordability, quality and access by developing solutions that are both impactful and scalable.