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:
16. Nigeria
Doing Business in Nigeria 2014 surveys 35 states and Abuja, FCT finding that is easier to deal with construction permits in Jigawa and Sokoto, register property in Zamfara and Gombe, enforce a contract in Katsina and Kaduna, and start a business in Abuja, FCT and Zamfara.
The most populous African country has not been left out in technology and innovative developments accross Africa. Coming at the thrid slot, Nigeria is a technology giant with lots of potentials in the industry. It is home to the likes of Iroko Partners ,a successful internet company with over 6 million uniques users from 178 different countries , made in Nigeria INYE-1 and INYE-2 tablet computers. Seyi Oyesola’s “Hospital in a box” invention et.. In recent times, the country saw the famous demonstration of a rugine powered generator developed by school teenagers ; a Moringa plant technology that would enable Nigerians to use Moringa plant for water treatment, a move toward increasing the accessiblity to potable water in the country. There are also a lot of achievements in mobile and web apps development in the country. Though the internet penetration is still low and stands at roughly 38% , Nigeria is a country with a lot of potentials producing the most talented people when given the opportunity.
✔ Starting a business
Nigeria made starting a business faster by allowing electronic stamping of registration documents. This reform applies to both Kano and Lagos.
✔ Dealing with construction permits
Nigeria (Kano) increased transparency by publishing all relevant regulations, fee schedules and pre-application requirements online. Nigeria (Lagos) made it easier to obtain construction permits by streamlining the permitting process and increased transparency by publishing all relevant regulations, fee schedules and pre-application requirements online.
✔ Registering property
Nigeria (Kano) made transferring property more transparent by publishing the list of documents, fee schedules and service standards for property transactions. Nigeria (Lagos) made transferring property easier and more transparent by removing the sworn affidavit for certified copies of land ownership records, introducing a specific and independent complaint mechanism and by publishing statistics on land transfers.
✔ Getting credit
Nigeria improved access to credit information by guaranteeing borrowers the legal right to inspect their credit data from the credit bureau and by starting to provide credit scores to banks, financial institutions and borrowers. Nigeria also strengthened access to credit by adopting a new law on secured transactions and establishing a modern collateral registry. These changes apply to both Kano and Lagos.
✔ Paying taxes
Nigeria made paying taxes easier by introducing new channels for payment of taxes and mandating taxpayers to file tax returns at the nearest Federal Inland Revenue Service (FIRS) office. This reform applies to both Kano and Lagos
15. Kenya:
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.
Kenya is definitely among the top African countries to be envied when it comes to technology. The country is seeing a lot of startup companies with revolutionary ideas especially in the IT sector and all things being equal, this is bound to continue with a lot of start-ups that may eventually form International platforms for further technology growth. Some of the inventions from Kenya include: charging shoe developed by Anthony Mutual, alarm-fitted television created by a 44-year-old man who resides in Nairobi. The alarm can be set off with a simple jostle of movement and can sound for up to eight hours , a charcoal stove, a solar-powered refrigerator which allows medications including vaccinations and valuable perishables to reach remote areas of rural cities where there is no hope of finding electricity, Moses Gichanga’s drone which flies for up to two hours at a time. Other similar inventions powered by Kenya’s raw talent include :Temperproof voting Machine , Underwater pets housings , SMS car immobilizer.
✔ Starting a business
Kenya made starting a business easier by merging the procedures required to operate formally.
✔ Dealing with construction permits
Kenya made dealing with construction permits less expensive by eliminatingfees for clearances from the National Environment Management Authority (NEMA) and the National Construction Authority.
✔ Getting electricity
Kenya improved the reliability of electricity by investing in its distribution lines and transformers and by setting up a specialized squad to restore power when outages occur.
✔ Getting credit
Kenya improved access to credit information by starting to distribute data from two utility companies.
✔ Paying taxes
Kenya made paying taxes easier by implementing an online platform, iTax, for filing and paying corporate income tax and the standards levy
14. Egypt:
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.
It was said that the civilization started in Egypt. This country has for long been associated with inventions and innovations. From the Egyptian Pyramid to the use of calendar and written language. The Northe African Country has not relented in spearheading science and technology in Africa. Egypt has some of the best universities in Africa that support development in technology. Egypt has gone this far because the government embraces technology with an attitude spread across all Industries. Despite the recent civil unrest in the country, Egypt is still a technological force to reckon with and is one of the most technologically advanced countries in Africa
✔ Registering property
The Arab Republic of Egypt made it more difficult to register property by raising the cost to verify and ratify a sales contract.
✔ Protecting minority investors
Egypt strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions
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.
✔ Resolving insolvency
Liberia made resolving insolvency easier by introducing a legal framework for corporate insolvency, making liquidation and reorganization procedures available to debtors and creditors
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.
With a much more stable and growing economy , Ghana is poised to have one of the best environments that supports advancement in technology. Quite a lot of technological innovations has emanated from the West African country of 25 millions people. Using compressed gas to generate electricity invented by Mr. Freddie Green is one of the out of the box thoughts that became real in the country. An affordable video conferencing system was also developed by a Ghanaian. The country is being looked upon as the next “great” African country.
✔ Dealing with construction permits
Ghana increased the transparency of dealing with construction permits by publishing regulations related to construction online free of charge.
11. Lesotho:
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.
10. Tunisia:
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.
✘ Paying taxes
Tunisia made paying taxes more costly by introducing a new exceptional corporate income tax contribution.
9. Zambia:
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.
✔ Getting credit
Zambia strengthened access to credit by adopting a new Movable Property Act and by setting up a new collateral registry. The new law implemented a functional secured transactions system. The collateral registry is operational, unified geographically, searchable by a debtor’s unique identifier, modern and notice-based.
✔ Paying taxes
Zambia made paying taxes easier by introducing an online platform for filing and paying taxes. Paying taxes was also made less costly through a reduction of the property transfer tax rate.
✔ Trading across borders
Zambia made exporting and importing easier by implementing a web-based customs data management platform, ASYCUDA World.
8. Senegal:
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.
✔ Starting a business
Senegal made starting a business more affordable by reducing the notary fees for company incorporation.
✔ Getting electricity
Senegal improved the monitoring and regulation of power outages by beginning to record data for the annual system average interruption duration index (SAIDI) and system average interruption frequency index (SAIFI).
✔ Registering property
Senegal made registering property easier by lowering the costs of transferring property and by reducing the time to transfer and register property.
✔ Paying taxes
Senegal made paying taxes easier by introducing time limits to the General Tax Code for processing value added tax cash refunds and applying these time limits in practice.
✔ Enforcing contracts
Senegal made enforcing contracts easier by introducing stricter pre-trial hearing rules that led to a reduction of the time necessary to resolve a commercial dispute.
7. Rwanda:
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.
Rwanda is a country ravaged by civil war and genocide in the past and right now, it is aiming to become a regional hub for African information technology. In this regard, the country has launched the proposed 4G LTE broadband network which would provide new opportunities to deliver better services accross the country. The country is engaging rapidly with all kinds of technology at once and perhaps we’d soon be able to see mind-blowing inventions.
✔ Dealing with construction permits
Rwanda increased quality control during construction by introducing risk-based inspections.
✔ Registering property
Rwanda made registering property easier by implementing online services to facilitate the registration of property transfers.
✔ Protecting minority investors
Rwanda strengthened minority investor protections by making it easier to sue directors, clarifying ownership and control structures and requiring greater corporate transparency.
✔ Paying taxes
Rwanda made paying taxes easier by establishing an online system for filing and paying taxes.
✔ Enforcing contracts
Rwanda made enforcing contracts easier by making judgments rendered at all levels in commercial cases available to the general public on the judiciary’s website.
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.
✔ Dealing with construction permits
Cabo Verde made dealing with construction permits easier by publishing all regulations related to construction online free of charge.
✔ Trading across borders
Cabo Verde made exporting and importing easier by implementing an automated customs data management system, ASYCUDA World.
✔ Resolving insolvency
Cabo Verde made resolving insolvency easier by adopting a law that introduces a reorganization procedure and facilitates continuation of the debtor’s business during insolvency proceedings. The law also allows creditors greater participation in important decisions during insolvency proceedings.
5. Botswana:
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.
Botswana is one of the most stable and successful economies in the whole of Africa. Technology is fast becoming a measure of international development and Botswana not willing to be left behind. The Botswana’s Innovation Hub backed by the government is designed to throw start-ups, global corporations ,research and health organizations under one massive green roof to facilitate the growth of technology in the country.
✘ Registering property
Botswana made registering property more difficult by reducing the efficiency of its Registrar of Deeds as it implements the computerization of manual records.
✔ Paying taxes
Botswana made paying taxes easier by establishing an online system for filing and paying taxes.
✔ Trading across borders
Botswana made trading across borders easier by implementing a new automated customs data management system
4. Namibia:
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.
✔ Enforcing contracts
Namibia made enforcing contracts easier by introducing an electronic filing system and an electronic case management system for the use of judges and lawyers
3. Morocco:
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.
✔ Starting a business
Morocco made starting a business easier by combining the stamp duty payment with the application for business incorporation.
✘ Registering property
Morocco made registering property more expensive by increasing registration fees.
✔ Paying taxes
Morocco made paying taxes easier by improving the online system for filing and paying taxes.
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.
South Africa , a country that cannot easily be compared with most other countries across Africa, also tops African countries in the current Global Innovation Index(GII), ranking number 53 out of 143 countries compared globally. The country supports its human potential tnad that is the reason why you see a lot of development in the IT field springing up from South Africa. With South African Universities constituting most of the best Universities in Africa, the country is bound to keep producing some of the most amazing inventions that are globally recognized. The list of discoveries that are worth mentioning are quite enormoud. Linux Ubuntu developed by Mark Shuttleworth, Multichoice (DSTV) is a South African company with a global influence, PayPal which was co-founded by a South Africa, CAT scan, SASOL technology that converts coal into oil , just to mention a few of South African innovations.
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.
✔ Starting a business
Mauritius made starting a business easier by exempting trade fees for licenses below MUR 5,000 and introducing the electronic certificate of incorporation.
✔ Dealing with construction permits
Mauritius made dealing with construction permits faster by outsourcing the design and construction of sewerage connection works.
✔ Registering property
Mauritius made it easier to transfer property by eliminating the transfer tax and registration duty, implementing a complaint mechanism and publishing service standards.
✔ Trading across borders
Mauritius made trading across borders easier by improving the Cargo Community System, introducing advanced electronic document submission and updating the risk-based inspection system.
