Tech Compensation Report 2025: Earnings of Tech Professionals in African Start-up Companies
In the dynamic world of African startups, tech salaries vary significantly by region and expertise. This article offers an insightful look into the current state of tech compensation across the continent, focusing on South Africa, Kenya, and Nigeria.
Salary Ranges by Region and Role
The table below provides a breakdown of average salaries for various tech roles in the three regions under consideration:
| Role | South Africa (Annual) | Kenya (Annual) | Nigeria (Annual) | Notes | |----------------------|------------------------------------|----------------------------|--------------------------------|--------------------------------------------| | Software Developer| $42,000 (Johannesburg)$55,452 (Cape Town) | $14,700 (Nairobi) | $7,500 - $11,000 (Lagos) | South Africa leads significantly in pay[1] | | Data Scientist | $21,600 (entry-level, $1,800/month)$57,600+ (senior) | Not specified | Not specified | Senior data scientists earn substantially[1] | | Product Manager | $40,130 (entry-level)$69,653 (senior) | Not specified | Approx. $27,600 ($2,300/month) | Wide pay gap across regions[1] | | Web Developer | Not specified | Approx. $30,000 (mid-level) | NGN 3,960,000 (~$9,600) | Nigeria's web developers earn relatively lower[3][2] | | Cybersecurity Engineer | Not specified | Not specified | NGN 2,400,000 (~$5,800) | Growing demand in AI, cloud, cybersecurity boosts pay[1][3] | | Big Data Engineer | Not specified | Not specified | NGN 3,000,000 (~$7,300) | |
Key Insights
- South Africa (Cape Town, Johannesburg) offers the highest salaries for tech startup roles, with developers earning between $42,000–$55,452 annually and experienced product managers up to nearly $70,000[1].
- Kenya (Nairobi, Malindi) salaries are mid-range, e.g., developers at $14,700/year and mid-level roles around $2,500/month (~$30,000/year)[1][2].
- Nigeria (Lagos) shows the lowest salary levels for software developers ($7,500–$11,000/year) and product managers (~$27,600/year), with tech roles like web developers and cybersecurity engineers earning modestly higher (around $5,800–$9,600/year)[1][3].
- The highest demand skills driving pay increases are artificial intelligence, cloud computing, and cybersecurity[1].
- Remote roles can command salaries exceeding local benchmarks due to global market access[1].
These figures illustrate the salary dynamics within African startups, influenced by factors such as funding levels, skill gaps, and regional economic differences. South Africa is the clear leader in compensation, followed by Kenya and then Nigeria, with considerable variations by expertise and seniority within each market.
Shaping the Future of Tech Compensation in Africa
A Gartner study predicts that by 2027, over half of African professionals will work remotely or in hybrid roles. Skills shortages are driving up wages for specialized roles, with 63% of cybersecurity positions remaining unfilled in South Africa. Hybrid work has become the norm, with Africa's freelance workforce growing by 55% since 2020.
This influx of capital is pushing salaries higher, especially in sectors like fintech, health tech, and logistics. The gap between graduate skills and employer needs highlights the urgency of investing in targeted training programs. Salary budgets are expected to increase by 6.7% in 2025.
Experts in fields such as AI/ML and data science tend to command higher salaries, particularly in tech hubs like South Africa and Nigeria, where the demand for skilled professionals surpasses the available talent pool. Proficiency in AI-related technologies is becoming indispensable across tech roles, with 51.9% of developers reportedly using AI tools.
Remote work is shaping salaries for tech professionals in African startups by opening doors to global job markets and driving up the demand for digital expertise. By reducing location-based pay differences, remote work is also expanding opportunities for tech talent across the continent.
[1] Source: TechCabal [2] Source: Nairobi Wire [3] Source: TechEconomy.ng
- The startup ecosystem in Africa is experiencing notable growth, with tech salaries varying significantly by region and expertise, particularly in South Africa, Kenya, and Nigeria.
- In South Africa, tech professionals can expect higher salaries, with software developers earning between $42,000-$55,452 annually and product managers reaching nearly $70,000.
- Kenyan tech professionals, such as developers, earn mid-range salaries at around $14,700 per year, while the freelance workforce is growing by 55% since 2020.
- Nigeria presents the lowest salary levels for software developers and product managers, with tech roles like web developers and cybersecurity engineers earning modestly higher.
- The demand for skills in artificial intelligence, cloud computing, and cybersecurity is driving wage increases across Africa, with salary budgets expected to rise by 6.7% in 2025.
- With the rise of remote work, tech professionals in African startups can command global salaries and expand their opportunities in sectors like fintech, health tech, education-and-self-development, personal-finance, lifestyle, sports, mobile money, venture capital, business, and technology.
