The AI race is on: Startup ecosystems in the crosshairs of a new era
Image: RON AI
When I wrote about the 2024 Global Startup Ecosystem Report (GSER) last year, it felt like the world of startups was holding its breath, hopeful, but cautious. We were all waiting to see what would come next. Now, here we are in 2025, and that moment of pause is well and truly over. The startup world has exhaled and taken off in a full sprint, straight into the AI era.
This year, the newly released GSER 2025, now in its 13th edition, hits a different note entirely. It doesn't just take stock of where we are, it challenges us to rethink where we're going. With insights drawn from over 5 million startups across more than 350 ecosystems, this year's report is, more than anything, a bold invitation to act.
Each ecosystem in the GSER 2025 is evaluated across six key success factors — Performance (total startup and exit valuations), Funding (early- and late-stage capital and large exits), Talent & Experience (quality and track record of founders and workforce), Market Reach (local and global customer access), Knowledge (research output and innovation capacity), and, new for 2025, AI-Native Readiness (the ecosystem's transition to AI-driven innovation in startups, funding, and policy).
The GSER 2024 painted a picture of stagnation in the post-Covid tech sector, with exits and funding levels far below pre-pandemic highs. The world's top ecosystems — Silicon Valley, London, and New York — held their positions, buffered by deep capital and talent reserves. But signs of movement were already evident: Tel Aviv surged to tie with Los Angeles for 4th, and Tokyo cracked the top 10 for the first time, backed by state-led innovation strategies.
Fast forward to 2025, and the ground has visibly shifted. Silicon Valley, no surprises here, is still king of the hill. But London, which had been comfortably sharing the silver medal with New York since 2020, has now been bumped to bronze. The real headline, though, is Tel Aviv's rise to fourth place outright, a climb powered by Israel's long-standing strategic investments and its central role in the global AI revolution.
China, which saw a dip in rankings last year, rebounded strongly in 2025 with notable improvements in rankings for cities such as Beijing and Shanghai, Europe faced a decline in ecosystem value apart from Paris which ascended to the 12th position.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Ad loading
The overall picture painted by GSER 2025 indicates a shifting focus; ecosystems that effectively incorporate AI technologies are likely to have a competitive edge, while those that remain anchored in outdated models risk obsolescence. The funding landscape wasn't entirely bleak. While overall startup ecosystem value declined, one sector surged ahead: Artificial Intelligence. AI startups didn't just weather the downturn; they thrived, capturing 40% of global VC funding in 2025, up from 26% in 2021.
Last year, Nairobi led the Sub-Saharan pack, with Lagos, Cape Town, and Johannesburg following. In 2025, Lagos takes the lead, boosted by three unicorns (Flutterwave, Moniepoint, and Andela) and a strengthened fintech backbone. Cape Town remains the only African city in the Top 100 Emerging Ecosystems, while Johannesburg, despite its wealth of financial institutions and Africa's largest stock exchange, continues to lag behind in ecosystem index rankings.
As South Africa contemplates its evolving role within this global context, the GSER 2025 delivers a clear directive: governments must allocate at least 25% of AI transition budgets to entrepreneurial ecosystems; not just to academic research or infrastructure. The path forward is clear: act locally, partner globally, and ride the AI wave with policy and precision.
For me, the GSER 2025 rings louder and more urgently than any report before it. The message is clear: the next generation of innovation won't wait for those who hesitate. Ecosystems that move quickly to embrace AI, and ensure its benefits are widely shared, will be the ones that shape the future.
Boitshoko Shoke, Research & Impact Manager at 22 On Sloane.
Image: Supplied
Boitshoko Shoke, Research & Impact Manager at 22 On Sloane.
*** The views expressed here do not necessarily represent those of Independent Media or IOL
BUSINESS REPORT
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
12 hours ago
- IOL News
Navigating Employer and Employee Liability for Generative AI Use in South African Workplaces
How is generative AI reshaping South African workplaces, and what legal challenges do employers and employees face in this evolving landscape? Image: IOL / Ron AI The rapid adoption of generative AI technologies like ChatGPT has transformed South African workplaces since 2022, creating both unprecedented opportunities and complex legal challenges. This technological shift has prompted important conversations across various institutional settings, with educational institutions and the judiciary leading discussions on how to mainstream generative AI while maintaining ethical standards. However, the workplace context has received notably less attention in these discussions. This oversight becomes particularly concerning when considering the fundamental question of employee liability for using generative AI tools especially in environments where explicit workplace policies remain absent and AI-specific legislation has yet to emerge. This gap leaves employers and employees navigating uncharted territory, where the absence of specific guidance may force reliance on existing frameworks primarily the Protection of Personal Information Act (POPIA) and the Labour Relations Act (LRA) to interpret the legal implications of generative AI use in professional settings. POPIA's Application to AI Use POPIA has found unexpected relevance in the age of generative AI. While lawmakers could hardly have anticipated ChatGPT and similar tools, POPIA's principles may apply directly when employees use AI systems to process personal or confidential information about clients, colleagues, or third parties. Section 4's requirements that processing be lawful, reasonable, and respectful of data subject rights take on particular significance in the AI context. These conditions typically demand informed consent or another lawful basis such as contractual necessity or legitimate interest. The problem arises when employees input personal data into AI tools without proper authorisation, or due regard for processing limitations or rights of data subjects thus creating what POPIA unambiguously defines as unlawful processing. The individual employee's obligation intersects with broader institutional duties under Section 19, which requires organisations to implement appropriate security measures in securing the integrity and confidentiality of personal information. This creates a web of shared responsibility: employees who circumvent established protocols whether through careless data uploading or deliberate workarounds expose both themselves and their employers to liability for data breaches and privacy violations. The practical consequence proves straightforward yet sobering. Unauthorised or negligent AI use that results in personal data exposure constitutes unlawful processing regardless of whether explicit AI policies exist. Employees may face potential disciplinary action and legal consequences, while their employers could confront concurrent regulatory penalties and civil liability a dual exposure that many organisations have yet to fully grasp. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Labour Law Framework and Employee Accountability From a labour law perspective, the absence of AI-specific legislation creates no legal safe harbour for employees. Fundamental obligations under employment contracts and workplace policies remain intact, with the LRA providing employers established mechanisms to potentially utilise in addressing AI-related 'misconduct.' Employment contracts commonly include confidentiality clauses that prohibit unauthorised disclosure of proprietary or sensitive information. Provisions that are seemingly adaptable to the AI era (if applied with caution). If an employee uses generative AI tools in a manner that transfers confidential data to unauthorised platforms or persons, this behaviour may breach contractual duties. Employers may then invoke disciplinary procedures under the LRA to address such misconduct, potentially leading to warnings, suspensions, or dismissal, depending on the severity. The scope of accountability extends beyond confidentiality to encompass intellectual property rights and workplace conduct standards. Misappropriation of IP through AI-generated content or failure to adhere to ethical guidelines regarding AI use provides legitimate grounds for employer action, even without explicit AI references in existing policies. However, employers may face challenges enforcing liability if no AI-specific rules exist and if employees claim ignorance of expectations. Changing Legal Landscape for South Africa and Use of AI The regulatory fog that has surrounded AI in South Africa is gradually lifting. The National AI Policy Framework, introduced in 2024, represents the government's first serious attempt to grapple with AI's dual nature its extraordinary promise alongside genuine risks that cannot be ignored. At its heart, the framework insists on human oversight, ensuring that AI systems augment rather than replace human decision-making. It also encompasses broader measures of accountability and transparency in AI system operations, including proactive efforts to identify and mitigate algorithmic bias, as well as design principles that ensure AI outputs are understandable and interpretable by users. The framework's most pragmatic promise lies in connecting AI governance to existing legal structures, particularly POPIA, rather than creating parallel regulatory systems. The policy also acknowledges an uncomfortable truth about South Africa's AI future: success depends heavily on developing local talent and expertise. Without substantial investment in the latter, the country risks becoming merely a consumer rather than a participant in the global AI economy. This framework shifts from a purely technical approach to insistence that AI applications embody fundamental South African constitutional values. Perhaps more pointedly, this declaratory position affirms that South Africa will not simply adopt AI technologies as they emerge, but will assume responsibility to shape implementation within the broader South African context. What employers can do in the interim while legal reforms are under way South African organisations face a pressing dilemma: while lawmakers struggle to keep pace with AI's rapid evolution, businesses cannot simply wait for regulatory clarity. The starting point being establishing acceptable AI use within the workplace. Rather than imposing blanket restrictions, effective governance distinguishes between applications that genuinely enhance productivity and those that introduce unacceptable legal or operational risks. Data protection presents the most immediate concern. POPIA's existing requirements make the casual uploading of sensitive information to public AI platforms a significant compliance hazard. Organisations that implement explicit authorisation protocols before any confidential data reaches AI systems not only avoid potential legal challenges but also demonstrate responsible stewardship of stakeholder information. Employee education proves equally crucial in this environment. Staff who understand the intersection between AI capabilities and legal obligations make fundamentally better decisions. Training that addresses privacy requirements, intellectual property implications, and the ways algorithmic bias can infiltrate business processes creates a workforce equipped to navigate uncertainty. Importantly, workplaces also benefit from establishing clear channels for reporting AI-related concerns, whether these involve misuse, security incidents, or unexpected system behaviour. This approach must be supported by comprehensive compliance management frameworks and risk mitigation strategies to enable early detection signs or issues before they escalate. * Sikhosonke Mayekiso is an attorney currently employed as a state law advisor at the Department of Justice and Constitutional Development. ** The views expressed do not necessarily reflect the views of IOL or Independent Media.
IOL News
12 hours ago
- IOL News
Tourism industry raises alarm over leadership turmoil in South African Tourism Board
SA Tourism CEO, Nombulelo Guliwe, a qualified Chartered Accountant, was appointed to the CEO position for a five-year period in February 2024 following a comprehensive recruitment process. Image: Supplied The Tourism Business Council of South Africa (TBCSA) - the umbrella organisation representing businesses in the hospitality, travel, and tourism sector - has voiced serious concerns over recent upheavals within the board of South African Tourism (SA Tourism). This comes after the SA Tourism board on Thursday placed CEO Nombulelo Guliwe on precautionary suspension effective immediately, following serious allegations of misconduct. Leadership instability at the national tourism agency responsible for marketing the country as a preferred tourist destination comes just a month before one of South Africa's biggest tourism conferences hosted by TBCSA. In a statement on Friday, TBCSA highlighted Guliwe's reported suspension and the resignation of board chairperson, Professor Gregory Davids, last month as glaring concerns. Compounding worries for the tourism industry, there are discussions around the potential dissolution of the board itself. These developments come at a time when the tourism sector is still in a precarious state of recovery following the tumultuous impacts of the COVID-19 pandemic. TBCSA said it was alarmed by the leadership instability as it could derail significant progress made in revitalising the tourism market. "These matters are deeply troubling as the sector is still in recovery mode," said TBCSA chairman, Jerry Mabena. "The TBCSA calls on the Minister, Hon. Patricia de Lille, to urgently address these matters. The TBCSA further stands in support of the work of the ministry and department in ensuring that tourism programs are not delayed or adversely affected." In light of these circumstances, the TBCSA called upon the Minister of Tourism, Patricia de Lille, to take swift action in addressing these pressing issues. The organisation expressed unwavering support for the Ministry and the department's efforts in ensuring that existing tourism programmes continue unabated and are not hindered by the ongoing uncertainties. Looking ahead, the TBCSA said it plans to engage with other key tourism stakeholders, including the board of SA Tourism, in the coming week in a bid to discuss strategies to collectively support the organisation during this turbulent period. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Meanwhile, De Lille's office declared the board's decision null and void since it no longer has a chairperson nor a deputy chairperson. In a brief statement in response to this suspension, the department said De Lille has noted the decision by the board and said it was "unlawful". "As of 31 July 2025, the South African Tourism Board does not have a board chairperson following the resignation of Professor Gregory Davids. This means, the board in its current form is not properly constituted to take such a resolution," said the department. "Minister de Lille, remains committed to ensuring the adherence to sound governance principles at South African Tourism and will address the above with the board." Guliwe, a qualified Chartered Accountant, was appointed to the CEO position for a five-year period in February 2024 following a comprehensive recruitment process. In nearly 10 years with the organisation, Guliwe has served in various leadership roles throughout her career including chief financial officer at SA Tourism since August 2019. Under Guliwe's tenure, SA Tourism was recently plunged into a tender scandal after allegations of irregularities in the awarding of a R100 million tender to Pomme Express. Pomme Express was reported to have failed to show proof of experience and alleged to have provided false and misleading information in its bid toorganise Meetings Africa 2025 and Africa's Travel Indaba 2025. While in the position of action CEO, Guliwe was accused by a group of SA Tourism employees of bullying and enforcing a culture of intimidation and intimidation, but the board at the time dismissed those allegations as baseless.
IOL News
2 days ago
- IOL News
Zoleka Lisa on steering SAB through booze bans while driving impact and growth
Zoleka Lisa, Vice President, Corporate Affairs, South African Breweries (SAB). Image: Supplied Zoleka Lisa is VP of Corporate Affairs at South African Breweries (SAB), where she oversees public policy, communications, stakeholder relations, entrepreneurship, and social impact. She moved from a senior role at Accenture into the alcohol industry to influence economic development and social initiatives on a national scale. Lisa has led SAB through major challenges, including complex COVID-19 alcohol bans, and is committed to mentoring emerging leaders, promoting responsible business, and driving inclusive growth across South Africa. What first inspired you to do what you do – and what was the moment that changed everything for you? My journey has always been fueled by curiosity, a relentless desire to understand the forces shaping our world and society. Growing up in a home that prioritised education, resilience, empathy, and purpose, I learned early on the value of discipline and kindness from my parents and grandmother. While I didn't have a specific dream career in mind, these values laid the foundation for my leadership journey. The pivotal moment came when I transitioned from a senior role at Accenture to the South African Breweries. That leap from management consulting to an industry that touches everyday lives enabled me to directly influence economic development, entrepreneurship, and social impact on a large scale, giving my work deeper meaning. What's the biggest challenge you've faced on your journey, and how did you push through it? One of the most critical challenges was navigating the COVID-19 pandemic shortly after being promoted to Vice President of Corporate Affairs. We faced complex alcohol bans that threatened the sustainability of our entire value chain, impacting livelihoods across the industry. Balancing government policy objectives with protecting workers and entrepreneurs required immense resilience, strategic dialogue, and collaboration. I could have stepped back, but instead I leaned into tenacity, surrounding myself with strong leaders and mentors to guide us through. That experience reinforced the importance of perseverance, agility, and compassionate leadership in crisis. What achievement are you most proud of, the one that still makes you smile when you think about it? I am deeply proud of leading a passionate team of change agents who are transforming how the industry engages with society. Together, we have driven impactful initiatives that uplift communities, promote responsible consumption, and foster entrepreneurship. Equally rewarding is mentoring emerging leaders—especially women—who have found their voices, seized opportunities, and gone on to lead with confidence. Seeing those individuals thrive and make their mark is a source of great joy and pride for me. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading What makes your role or career path different or special in South Africa? My role sits at the intersection of business growth, social impact, and national development, a unique vantage point in South Africa's complex landscape. As Vice President at SAB, I oversee public policy, communications, stakeholder relations, entrepreneurship, and social impact portfolios, which are central to how we build meaningful, responsible relationships with society. This position enables me to influence policies that support local industries, embed shared values into our growth, and contribute to transformative initiatives that resonate beyond business metrics. Serving on industry and community boards allows me to champion change that benefits the broader South African economy and society. How do you think the work you do is making a difference – whether in your industry, your community, or for other women? I believe in creating opportunities where people, especially women and youth, can flourish and thrive. Through SAB and the SAB Foundation, we invest in agriculture, entrepreneurship, and social upliftment to ensure inclusive growth. This work is about more than business; it's about empowering communities and nurturing leaders who will shape South Africa's future. I am deeply inspired by the resilience and tenacity of women who overcome adversity daily, and mentoring them to find their leadership voices is one of the most fulfilling parts of my role. What's the one piece of advice you'd give to a young woman who dreams of following a similar path? Make yourself proud. In large organisations, it's easy to get lost trying to please everyone or meet endless expectations. Instead, focus on your own goals, build a clear career plan, and identify supporters and sponsors who believe in your potential. Lean into that network and, most importantly, show up for yourself every day, through your work, your learning, and your leadership. Your journey is yours to own, and success is measured by how true you stay to your values and ambitions. Who's been the biggest influence or mentor in your career? My greatest influences have been my family, especially my parents and grandmother, who taught me discipline, resilience, and the power of education. They provided the emotional and moral compass that guides me today. Beyond family, I find inspiration in African changemakers, many of whom are not public figures but community leaders demonstrating unwavering commitment to development, women's empowerment, and social justice. Their courage and values constantly motivate me to lead with purpose. What's one myth about your job or industry you'd love to clear up? Many assume the alcohol industry only fuels irresponsible drinking or that our work is all about parties. In reality, we invest heavily in educating consumers about moderation and responsibility because lives and livelihoods depend on it. Like any business, our days are filled with deadlines, strategic planning, public policy engagement, and financial analysis to ensure our impact is meaningful and lasting. If you could give yourself one piece of advice, what would it be? Trust your own voice and show up for yourself and your team unapologetically. Finding my authentic voice and leadership style has been a journey of embracing all parts of myself, whether it's being a supermom at home, a dedicated leader at work, or showing up with my all-stars, my blue (and sometimes blonde) hair in boardrooms. Through this authenticity, I've created a space where diverse voices are genuinely heard and valued. Leadership isn't about fitting into a mould; it's about leaning into your strengths, committing to continuous learning, and fostering environments that empower others to do the same. When leaders show up unapologetically, being self-aware and embracing their unique journeys, they inspire confidence and courage, not only in themselves but in everyone around them, building stronger, more inclusive teams and communities. When you think back to the subjects you chose in high school or what you studied afterwards, did you ever imagine you'd end up where you are today – and how did that journey unfold? I often laugh and say I was definitely more of a nerdy 'thank you, professor' type than someone who was cool, but deeply curious about how the world worked and why. When I went to university, I studied Environmental Science and Economics, fields that gave me a broad perspective on how complex systems operate. Early in my career, I focused heavily on strategy and consulting, working with top global companies like Accenture. That foundation in problem-solving and business acumen has been invaluable. Now, as Head of Corporate Affairs for South African Breweries, I truly feel I've come full circle in my journey. Along the way, I pursued executive development programs at the London School of Economics and Stanford, which sharpened my strategic thinking and leadership skills. Today, I'm able to apply everything I'm passionate about, strategy, socio-economic insight, and geopolitical understanding, to work that is both meaningful and impactful. This blend of experiences, combined with deeply held values, has shaped me not just as a leader but also as a mother and a person. It's a journey I hope to continue paying forward by mentoring others and contributing to the growth of the next generation of leaders. IOL
