THE Startup Genome's Global Startup Ecosystem Report 2025 delivers a jarring wake-up call to Zimbabwe: We have dropped eight places on the rankings to 117th out of 118 countries surveyed.
This is not just another statistic — it's a damning indictment of our readiness for the economic transformation that startups can deliver.
While the global startup ecosystem contracted by 31%, Zimbabwe's position reveals a more troubling reality.
With only 23 recorded startups, we are not 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 Africa 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 is 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 to bleed our most capable minds, leaving behind an ecosystem starved of the technical talent that drives innovation elsewhere.
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Bulls to charge into Zimbabwe gold stocks
- Ndiraya concerned as goals dry up
- Letters: How solar power is transforming African farms
Keep Reading
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 emphatic that there is no startup ecosystem in Zimbabwe.
They criticised 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 to the top five demonstrate that the 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 specialisation 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 is concentrated 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 specialised talent, computing 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 recognise 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 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 macro-economic stability, streamlined regulations, diversified funding and strategic sector focus.
Zimbabwe's startup ecosystem does not need to reach Silicon Valley standards overnight. It needs to stop sliding backwards while the world accelerates forward. The GSER 2025 provides our blueprint: Strategic specialisation, proactive governance and diversified capital. The question is not whether we can build a thriving innovation economy — it's whether we will choose to do so before opportunities disappear entirely.
Our entrepreneurs are ready. The global template exists. The only missing ingredient is the 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
