10 Most Underrated African Cities For Entrepreneurs In 2025

When people talk about African entrepreneurship, the same cities dominate the conversation: Lagos for its sheer scale and hustle, Nairobi for its tech buzz, Cape Town for lifestyle and talent, Cairo for its big domestic market. But Africa is vast, and ambition is not confined to a handful of mega-hubs.

We all hear about the usual suspects. But there’s a quieter wave of cities on the rise. Cities buzzing with traders, makers, creatives, and food entrepreneurs. These are places where starting up doesn’t require selling your soul or your savings on rent.

Across the continent, there are cities where traders, manufacturers, creatives, and yes, tech founders, are building businesses with less noise and often less cost. Some of these cities are ports that double as trade lifelines, others are industrial towns with steady talent pipelines, and some are cultural centres where creative industries fuel new forms of enterprise.

These underrated cities may not always make the headlines, but they’re quietly producing opportunities for entrepreneurs who know where to look.

Here are 10 underrated cities across Africa where building a real business feels possible, affordable and sustainable.

1. Dakar, Senegal

Dakar has always been a cultural capital, but it’s also shaping up as a serious base for business. Senegal’s Startup Act is one of the continent’s most advanced, and reforms have reduced red tape for SMEs. The city’s strategic Atlantic location, vibrant arts economy, and improving infrastructure make it fertile ground not just for tech, but also for fashion, food processing, and logistics businesses.

Senegal’s entrepreneurship scene blends culture, creativity, and business. Take fashion designer Safietou Seck—she turned woven fabrics from Burkina Faso and Mali into SARAYAA, a brand that’s shown at Paris and New York fashion weeks.

She’s not the outlier; Dakar’s fashion ecosystem is thriving, with star designers like Adama Ndiaye (Adama Paris) launching Dakar Fashion Week, and creatives like Papa Abdou Salam Ndiaye turning the city’s colourful minibuses into art-wear under his brand Meissa Biguey.

2. Abidjan, Côte d’Ivoire

Abidjan is West Africa’s commercial heartbeat after Lagos. It anchors cocoa exports, hosts regional headquarters for multinationals, and is expanding its port. The city’s growing middle class and Francophone market linkages are opening doors for consumer businesses, hospitality, and manufacturing. Entrepreneurs find a balance here in the form of regional reach with relatively manageable costs.

There, entrepreneurs are building hospitality brands, cocoa-linked logistics services, and consumer goods companies. Venture capital is trickling in, focused on francophone West Africa, and global corporates are opening innovation. It’s bustling but not overcrowded, with good infrastructure and relatively affordable operations.

3. Lusaka, Zambia

Zambia’s capital has seen waves of economic turbulence, but its recent debt restructuring and currency stabilisation are attracting cautious optimism. Lusaka is a launchpad for agribusiness, mining services, and logistics startups that serve both domestic needs and cross-border trade with the DRC and southern Africa.

BongoHive remains one of Africa’s longest-running incubators for independent thinkers and makers. Digital startups coexist with agro-processing, transport logistics, and mining services. The city’s lower urban density compared to megacities makes it more affordable for small businesses to take root, but be ready to pitch for funding from regional or global partners.

4. Gaborone, Botswana

Known for diamonds and stability, Gaborone is also a surprisingly friendly base for entrepreneurs. Botswana Innovation Hub and government SME programs provide a supportive framework, while the city’s proximity to South Africa allows access to a larger market. Beyond tech, Gaborone is fertile ground for tourism ventures, green energy, and professional services.

5. Windhoek, Namibia

Windhoek is compact and orderly, with growing attention to entrepreneurship. Startup Namibia has been nurturing new ventures, but the opportunities stretch into several sectors. With recent approvals for satellite internet, the city is improving connectivity, which is a boost for all forms of business from online retail to hospitality.

Windhoek might be tight and quiet, but its entrepreneurial energy is anything but sleepy. Entrepreneurs here are exploring agribusiness, tourism startups, and energy solutions—all with costs and competition far lower than in mega-hubs.

6. Cotonou, Benin

Cotonou is a trade city at heart, with a bustling port that serves as a gateway for landlocked neighbours. Benin’s Startup Act adds momentum, but opportunities also lie in logistics, retail, and agro-processing. For entrepreneurs, Cotonou combines relative affordability with access to both francophone markets and Nigeria just across the border.

7. Lomé, Togo

Lomé is small but mighty thanks to one of West Africa’s busiest ports. Entrepreneurs in logistics, warehousing, and manufacturing find it a practical hub. The government has pushed digitisation and simplified visas, making it easier for businesses to operate. For cross-border traders and SMEs serving francophone West Africa, Lomé is an under-appreciated gem.

8. Kumasi, Ghana

Kumasi is Ghana’s commercial and industrial heart. The presence of KNUST (a top engineering university) fuels not only tech ventures but also small-scale manufacturing, hardware, and agri-business. Its markets bustle with wholesale trade, and the city has a reputation for producing self-starters in fashion, crafts, and services. Kumasi may not be as shiny as Ghana’s capital, Accra, but for many entrepreneurs it’s more grounded and affordable.

9. Ibadan, Nigeria

Ibadan often lives in Lagos’ shadow, but it is Nigeria’s second-largest city by area and has its own advantages. Rents and operating costs are significantly lower, and its location on key transport corridors makes it attractive for logistics, agribusiness, and education ventures. The University of Ibadan supplies talent, while growing SME hubs are helping entrepreneurs scale without Lagos’ chaos.

10. Dar es Salaam, Tanzania

Dar es Salaam is Tanzania’s commercial capital, handling most of the country’s trade through its port. Entrepreneurs here plug into agriculture, textiles, tourism, and logistics.

There’s a visible buzz in Dar thanks to upgrades in transport like the standard-gauge railway, an energised hub scene led by Buni, and an uptick in agribusiness and textiles.

The port still handles massive trade volumes, and digital services are gaining ground. Government investments in infrastructure are strengthening the city’s role as a business hub for East Africa.

The upshot? Entrepreneurship in Africa doesn’t only bloom where the unicorns graze. These ten cities show that opportunities exist in ports, industrial towns, and cultural centres that don’t always dominate headlines. For entrepreneurs willing to look past the usual suspects, these underrated places offer a mix of affordability, access, and potential that can be just as valuable as the big hubs.

Feature Image Credits: HubSpot