It’s a provocative statement—especially in Africa, where fewer than ten unicorns exist. But it reflects a deeper truth: while unicorns symbolise market disruption and billion-dollar valuations, we need ecosystems that nurture real, grounded, inclusive innovation—especially in contexts like South Africa.
Understanding the Unicorn Landscape
In venture capital terms, a unicorn is a startup company with a valuation exceeding $1 billion (Chen, 2025). They are usually found in sectors like technology that require massive capital to bring products to market (Chen, 2025). A unicorn is a mystical and elusive creature in mythology and business. By nature, they’re disruptors, achieving exponential growth and rapid market penetration.
There are just over 1,200 Unicorns globally (Chen, 2025), with a limited number in developing countries: a direct correlation of the economic landscape to supporting the emergence of successful and groundbreaking businesses.
Unicorns on the African continent contribute to 0,008% of the global total! On the African continent, these are the latest recorded Unicorns (privately owned companies valued at $1bn not yet publicly traded); the majority operating in the Fintech space and tackling socio-economic challenges.
1) Interswitch (Nigeria)
2) Flutterwave (Nigeria)
3) OPay (Nigeria)
4) Wave (Senegal)
5) Andela (Nigeria)
6) Chipper Cash (Uganda)
7) MNT-Halan (Egypt)
8) Moniepoint (Nigeria)
9) TymeBank (South Africa)
South Africa’s Lone Unicorn: TymeBank’s Journey
TymeBank’s unicorn status was achieved in December 2024 after a $250 million Series D round led by Nubank marked a rare milestone in South Africa’s innovation landscape. Valued at $1.5 billion, the bank stands out not just for its scale, but for its mission: building inclusive, tech-enabled financial solutions for underserved communities. Its success underscores the potential for innovation to be both commercially viable and socially impactful (Reuters, 2024; TechCrunch, 2024).
But TymeBank is not alone in demonstrating what’s possible. Homegrown ventures like Yoco, supporting over 200,000 small businesses with digital payment tools; Aerobotics, applying AI to agriculture in 18 countries; and JUMO, reaching 18 million users across emerging markets, show that global relevance doesn’t hinge on unicorn valuations. Instead, these companies prove that solving real, local problems—at scale—is what drives enduring success.
The Double-Edged Sword of Disruption
While unicorns bring transformative change, their impact isn’t always positive. Consider how industry disruptors have reshaped our landscape: trips to Blockbuster and video rental stores are distant memories, as are calls to traditional taxi services. This disruption creates winners and losers.
The downside is stark: job losses in traditional industries leave employees who haven’t been upskilled facing an uncertain future, impacting families, homes, and communities. This highlights the critical need for businesses to innovate or risk obsolescence.
Yet disruption also brings opportunity. It creates new employment possibilities, skills development pathways, fresh markets, economic growth, and global opportunities while attracting regional investment. The entry of unicorns like Uber and Airbnb into African markets demonstrates the potential for South African companies to expand beyond our borders (Daily Maverick, 2024).
The Funding Reality Check
However, South Africa faces a harsh reality. As Sentech CEO, Mlamli Booi, noted (Malinga, 2023): “South Africa’s current power crisis is not the major crisis that we face; the biggest challenge is the lack and absence of venture capital funding in this market.”. He emphasised that whilst South Africa excels at building large corporates, “the corporate venture capital market is very stingy; there is no funding for start-ups” (Malinga, 2023).
This funding gap is particularly challenging in a country where entrepreneurs often operate in survival mode, bootstrapping with minimal support and maximum risk. There’s little room for the bold risk-taking that unicorn-building typically requires.
The Real Giants: MSMEs
While unicorns may grab headlines, Medium, Small and Micro Enterprises (MSMEs) form the backbone of our economy, driving both employment and resilience. The statistics are compelling:
- Estimated turnover: Over R5 trillion
- Workforce contribution: 80% of all employment
- Total enterprises: Approximately 3 million MSMEs
- Employment: Around 13.4 million people
- Micro-enterprises: Over 2.5 million, with 72% operating informally
- Financial exclusion: 15% of MSME owners remain financially excluded (FinMark Trust, 2024)
These figures force us to confront a critical question: While we chase elusive unicorns, are we overlooking the transformative potential of real investment in MSMEs to drive economic growth and meaningful societal change?
Creating a Climate for Innovation
The answer lies in shifting our focus by building an environment where entrepreneurship and innovation are not just encouraged, but also empowered to thrive. Organisations like Startup Act (check out their site www.startupact.co.za) are already actively working in this space with the aim ”to make it easier for startups to establish, grow and scale’.
We need systematic change across multiple fronts:
Policy and Regulatory Reform
- Removing regulations and legislation that hinder growth
- Strengthening the ecosystem through public private partnerships
- Incentivise startups through the provision of tax breaks
Investment and Finance
- Investment in developing our own tools and technologies
- Derisking finance for startups and early-stage innovation
- Increased local investment in at a minimum seed funding for startups
- Create test beds and opportunities for pilots
Ecosystem Development
- Identify and mobilise key role players in supportive ecosystems
- Allocate resources strategically
- Promote local investment to support startups
- Develop manufacturing and engineering capabilities
Beyond Billion-Dollar Dreams
Supporting the ideal of a ‘Unicorn’ implies the existence of a market need. With a multitude of cross-cutting issues plaguing our systems and structures, we certainly find ourselves in need of disruptive solutions that add value to our lives. However, a more pressing need is supporting innovation and StartUps that provide solutions to our grassroots issues – equitable access to water, food, housing, healthcare and education.
While Innovate Durban supports early-stage innovation, focusing on ideation to market-ready stages – innovators are increasingly finding themselves at a bottleneck to successfully commercialise. The key to success lies in creating an ideal environment and mobilising supportive ecosystems. Through our Innovation Co-Lab in Cato Manor and various programmes, we work directly with MSMEs and grassroots innovators, providing the technical skills, resources, and mentorship often unavailable in traditional funding models. Our township-based approach demonstrates how innovation support can be both accessible and impactful, particularly for entrepreneurs who lack access to conventional venture capital networks.
Conclusion: Reframing Innovation Success in South Africa
Unicorns may symbolise the pinnacle of startup success, but in South Africa’s complex and unequal landscape, the true measure of innovation lies in its ability to solve real problems, uplift communities, and build sustainable businesses. While global headlines celebrate billion-dollar valuations, our focus must shift to nurturing the often-overlooked MSMEs and grassroots innovations, the businesses that drive employment, fuel local economies, and hold the potential to transform society from the ground up.
Creating the right climate for innovation means going beyond admiration of rare successes. It requires intentional investment in our local talent, removal of structural barriers, and a collective commitment to building ecosystems where bold ideas can thrive, regardless of their size.
If we get this right, South Africa may not just produce more unicorns—it will create something far more valuable: an inclusive economy powered by innovation that serves everyone.
The path forward requires collective action. Whether you’re an entrepreneur, investor, policymaker, or simply someone who believes in South Africa’s innovation potential, there are ways to contribute to building our ecosystem. Support local businesses, advocate for regulatory reform, mentor emerging entrepreneurs, or engage with organisations like Innovate Durban that are actively nurturing grassroots innovation.
The question isn’t whether we can build unicorns—it’s whether we can build an ecosystem so robust and inclusive that unicorns become a natural byproduct of widespread innovation success. Join us in making this vision a reality.
*To learn more about supporting South Africa’s innovation ecosystem or to explore collaboration opportunities, visit [www.innovate.durban](http://www.innovate.durban) or connect with us on social media.
Reference List
Chen, J. (2025). Unicorn: What It Means in Investing, With Examples. Investopedia. Available: https://www.investopedia.com/terms/u/unicorn.asp
Crowdfund Insider. (2024). Digital Banking Firm Tyme Group Becomes Unicorn After $250m Funding. December 20, 2024. Available: https://www.crowdfundinsider.com/2024/12/234403-digital-banking-firm-tyme-group-becomes-unicorn-after-250m-funding/
Daily Maverick. (2024). South Africa welcomes another unicorn: Tyme group’s $150 million funding fuels ambitious growth plans. December 18, 2024.
FinMark Trust. (2024). FinScope MSME South Africa 2024: Key findings highlight urgent need for informal sector support. September 16, 2024. Available: https://finmark.org.za/knowledge-hub/articles/finscope-msme-south-africa-2024-key-findings-highlight-urgent-need-for-informal-sector-support
Malinga, S. (2023). Tech ‘unicorns’ are still mythological in SA. ITWeb, May 22, 2023. Available: https://www.itweb.co.za/article/tech-unicorns-are-still-mythological-in-sa/LPwQ57lbBYJqNgkj
Reuters. (2024). Brazilian digital lender Nubank invests $150 million in Tyme Group. December 17, 2024.
TechCrunch. (2024). African digital bank Tyme raises $250M round led by Nubank at $1.5B valuation. December 16, 2024.
Tyme Group. (2024). Latin America’s Nubank leads Newly Minted Unicorn Tyme’s capital raise. December 17, 2024. Available: https://www.tyme.com/news-room/