The African continent is buzzing with potential. Rich in natural resources, a hardworking population, and huge gaps and opportunities for anyone who wants to succeed in business.
Yes there are challenges, but there is also huge potential for growth in almost any sector.
Based no Forbes‘ list, we have compiled Africa’s top countries for business. The list was compiled by rating 139 nations on 11 different factors: property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape, investor protection and stock market performance.
Drawing from the list from Forbes, this list highlights the 15 Best Countries For Business in Africa:
Kenya is the economic and transport hub of East Africa, seeing them placed 105th overall. Although poor infrastructure continues to hamper Kenya’s potential for economic growth, the country ranks highly in Innovation, 36th, and Investor Protection, 80th, this places them 15th on this list.
Northeast African country Egypt, 103rd in the overall list, has been characterized by a uncertain political, policy and security since 2011. Egypt performs favorably in the ranks of Red tape, 34th, and Market performance, 2nd, which sees them sit in 14th spot on this list.
13) Liberia: West African coastal country Liberia is ranked 96th on the overall list. Liberia is a low income nation that relies heavily on foreign assistance. It is blessed with the climate for agriculture and is rich in mineral resources. With rankings 33rd in Red Tape and a Tax Burden rating of 66th, Liberia is 13th on this list.
12) Ghana: Ghana is a West African country which is ranked 90th in the overall list. Ghana has a market based based economy with relativity few policy barrier to trade and investment. Ghana is blessed with an abundance of natural resources and with ratings of 36th Personal Freedom and 53rd in Property Rights, Ghana is the 12th best country for business in Africa.
Completely landlocked by South Africa, Lesotho is ranked 88th in the overall list. Although Lesotho has a heavy reliance on South Africa, their ratings of 47th in Trade Freedom and 59th in Corruption sees them placed 11th in this list.
Ranked 87th overall, North African country Tunisia has long be hailed as an African success story due to its diversified market-orientated economy. With rankings such as Market Performance, 39th, and Personal Freedom, 42nd, Tunisia is ranked the 10th best country for business in Africa.
Southern African country Zambia, ranked 86th overall, has had one of the fastest growing economies over the last 10 years. In spite of Zambia’s lack of diversification and over reliance on copper trading their rankings of 51st in Tax Burden and 66th in Innovation, sees them place in at 9th in this list.
Senegal is a West African country that is placed 81st in the overall list. The economy of this country is driven by mining, construction, tourism, fisheries and agriculture. Although the country has a heavy reliance on direct foreign investment, donor assistance and remittances, their rankings in Personal Freedom, 42nd, and Innovation, 50th, sees Senegal ranked as the 8th best country for business in Africa.
East African country Rwanda is placed 78th in the overall list. It is a rural country where 90% of its population is involved in sustenance agriculture and minerals. Rwanda’s main sources of foreign exchange are tourism, minerals, coffee and tea. With rankings such as 33rd in Property Rights and 47th in Innovation, Rwanda are the 7th best country for business in Africa.
6) Cape Verde:
An Island off the northwest coast of Africa, Cape Verde is number 70 in the overall list. The economy is service-oriented with commerce, transport, tourism, and public services. Although the country suffers with a poor natural resource base, they are ranked 1st for Personal Freedom and 14th in Monetary freedom, which sees them placed as Africa’s 6th best country for business.
This Southern African country, ranked 68th overall, fueled by diamond mining has maintained one of the worlds highest economic growth rates since 1996. A downturn in the global diamond market as well as water and power shortages have seen Botswana growth slow slightly but with rankings such as 28th in Corruption and 44th in Property Rights, Botswana is Africa’s 5th best country for business.
The Southern African country is ranked 63rd on the overall list. Namibia is the worlds 5th largest producer of Uranium and has an economy that is heavily dependent on the extraction and processing of natural mineral resources for export. Namibia is ranked 5th in Market Performance and 55th in Trade Freedom, this sees them ranked 4th in this list.
Africa’s most northern country Morocco, 51st on the overall list, has taken advantage of it proximity to Europe and their reasonably low labour costs to build a diverse, open-market economy. Despite Morocco’s economic progress, the country suffers from high unemployment, poverty, and illiteracy, particularly in rural areas. With their rankings of 17th in Market Performance and 21st in Monetary Freedom, Morocco is Africa’s 3rd best country for business.
2) South Africa:
At the Southern tip of Africa, South Africa is ranked 48th in the overall list. South Africa is a middle-income emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors; and a stock exchange that is Africa’s largest and among the top 20 in the world. Unemployment, poverty and inequalities in South Africa are among the highest in the world but with their ratings in Investor Protection, 22nd, and Property Rights, 30th, South Africa is the 2nd best country for business in Africa.
1) Mauritius: This Island off the coast of east Africa is ranked 39th in the overall list. Transformed from a low-income agricultural based economy into a diversified upper middle-income economy with growing financial, industrial and tourism sectors along with sound economic policies and prudent banking practices backs up Mauritius’s ranking. Highly ranked in Trade Freedom, 4th, and Property Rights, 34th, Mauritius is the best country for business in Africa.