5 Best Countries in Africa To Do Business
Africa is among the few continents buzzing with potential. Rich in natural resources, a hardworking population, and huge gaps and opportunities. Especially for those that desire to exploit this rich continent. We present you a list of the best countries where can one can engage in business easily in Africa.
Much as there are challenges in Africa, there is also huge potential for growth in almost any sector.
This tiny island country has one of the smallest market sizes on the continent. Which means some investors tend to ignore it. However, the state has consistently ranked higher than other African countries in ease of doing business. It currently ranks number 1 in the world bank’s ease of doing business index in comparison to other African countries.
Mauritius’ stable political system, liberal financial sector, and low taxes encourage business formation. These have made it an ideal environment for investors who prefer a business-friendly and less risky investment environment.
The country signed a full free trade agreement (FTA) with China last year. Africa’s first formal FTA with China – and has expressed an interest in becoming a transhipment and financial hub on China’s Maritime Silk Road trade route. Mauritius has already agreed on a formal trade agreement with three African trade blocs. These include; Common Market for Eastern and Southern Africa, Southern African Development Community and the East African Community.
Rwanda is one of Africa’s fastest-growing economies. With growth averaging more than 6 per cent every year since the turn of the century. Last year, it recorded the most business reforms in the region. The world bank says it has “carried out the most reforms since the inception of Doing Business 16 years ago.”
One major point of improvement pointed out in world bank’s Doing Business 2019 is the ease of starting a business in Rwanda. It has replaced its bureaucratic structures with an electronic system. Last year, it replaced its stifling special billing machine system for value-added tax invoices with free software. Which allows taxpayers to issue value-added tax invoices from any printer. Also, the country is only second to New Zealand in the ease of property registration in the world.
Morocco is not only famous for its vibrant culture, superb cuisine, and awe-inspiring landscape but also its friendly business environment. The greatly enhanced operating environment has served Morocco well to become a favourable position. Morocco a financial hub and platform from which European countries can access the African market. Between 2011 and 2019, Morocco climbed from the 114th place to the 60th place in the Ease of Doing Business ranking. Indicating sustained improvements to the business climate.
Tourism and manufacturing are expected to be the key growth drivers of the economy. The manufacturing sector is also expected to benefit from substantial foreign investment into the autos and aeronautics industries.
The country was one of the world’s best performers in the areas of Getting Credit and Starting a Business, according to the world bank. One major reform the government initiated was the introduction of a new law. Which upon induction, improved the ease in accessing credit for businesses. The Kenyan government has also been collaborating with IBM to develop technological solutions for its agencies. This has since resulted in making registration of property easier. Through introducing an online system to pay fees and obtain digital certificates.
Kenya is East Africa’s leading regional hub for information and communication technology, financial, and transportation services.
South Africa is a middle-income emerging market with an abundant supply of natural resources. The nation boasts of well-developed financial, legal, communications, energy, and transport sectors. Also, a stock exchange that is Africa’s largest and among the top 20 in the world. In as much as the nation is plagued with unemployment, poverty, and inequalities, South Africa is still one of the best countries for business in Africa.
South Africa, cannot easily be compared with most other countries across Africa.