Top 5 countries to do business in Africa in 2018
Africa is a dynamic goldmine for whomever wants to invest in the continent. More than ever Africa is eager to rise up and back itself up, just like President of Ghana Nana Akufo-Addo said : “We want to build a Ghana beyond aid” and that bold statement is true beyond Ghana’s frontiers.
On this big land, there are countries that do not look at agriculture and tourism as providential for their economy, but rely also on innovation and technology. However trying to start a business from scratch in sub-saharan Africa can be tricky and full of barriers. We listed out the countries that will make it easy for you to kickstart a business or invest.
1. Mauritius (Ranked #49 on World Bank “Ease of doing business”)
Mauritius is by far the best country to do business in Africa. Mauritius ranked 49th in world bank’s “ ease of doing business”. It’s economy is based on tourism, textiles, sugar, and financial services. The country shifted its focus toward diversifying its economy. The government added many other important sectors such as information technology and renewable energy then proceeded to make several positive reforms which has enticed foreign investors to the country.
2. Rwanda (Ranked #56 on World Bank “Ease of doing business”)
Rwanda is one of the fastest growing economy in central Africa. By 2020 the government aims to transform Rwanda from a low-income agriculture-based economy to a knowledge-based, service-oriented economy with a middle-income status, currently 17% of the country is urbanised, but the plan is to reach 35%. The country is really safe and corruption is almost non existent. Business registration is so fast, it would make your head spin.
3. Botswana(Ranked #71 on World Bank “Ease of doing business”)
Botswana is a politically stable country that had held 11 elections since it’s independence in 1966. The country is ranked among the world’s least corrupt countries.
Botswana is a signatory to the World Bank’s Multilateral Investment Guarantee Agency (MIGA) and other agreements that ensure maximum security for investors.Start-up procedures; have been streamlined to 47 days since 2008. Botswana has one of the fastest growing economy rates per capita in the world and has had the largest success in the areas of diamond and precious metal mining,
4. South Africa(Ranked #74 on World Bank “Ease of doing business” )
South Africa is Africa’s largest economy with a GDP of 354 billion US, it’s key industries are: tourism, auto manufacturing, information and communication technology development, and mining.
According to the World Bank report which ranks South Africa 74th, the state has reduced the time and the number of documents required to export and import through its ongoing customs modernization program which has reduced export times from 30 days in 2008 to 16 days now and import times from 35 to 23 days.
5. Kenya (Ranked #92 on World Bank “Ease of doing business”)
Kenya is turning its economy towards telecommunications,transportation and energy, Google participated to that effort in putting 700 billion us dollars into the wind power and grid infrastructure project. Kenya made starting a business easier by removing stamp duty fees required for the nominal capital.
Honorable mention to Nigeria, Malawi and Zambia who were among this year’s top 10 improvers, based on reforms undertaken.