Doing Business in Africa: Your Guide To The Continent’s Top 10 Countries On The ‘Business-Ready’ Index
Picture this: You’re an investor or entrepreneur hoping to start or relocate your business to Africa. But with 54 countries to choose from, which one is the best option? While The World Bank has withdrawn its Ease of Doing Business Index (the last one came out in 2020), and with many countries having voted in new leadership in the time since, the world’s new political and economic post-Covid realities have significantly changed their policies and regulatory frameworks, making this list obsolete.
In its place, we have the ‘Business Ready’ (B-READY) report, also researched and published by The World Bank. Scheduled to be released every September for three years starting 2024, the report assesses countries on the basis of three pillars: Regulatory framework, public services, and operational efficiency.
Its regulatory framework pillar analyses a country’s rules and regulations that govern the way businesses open, operate and close. The public service pillar examines the infrastructure and facilities governments provide that allow firms to work with ease, while the operational efficiency looks at the ease of regulatory compliance the country provides, as well as the employment of public services that are directly relevant to businesses.
Without further ado, let’s get into which African countries offer the best environment for business to open, scale and shut down.
- Rwanda
Rwanda takes the top spot, for its “unwavering commitment to governance, digital transformation, and ease of doing business,” said Dr. Anya Sharma, an economist and host of the unveiling ceremony. The report praised its streamlined business registration, transparent land administration, and a zero-tolerance approach to corruption. Its highly efficient public service and forward-thinking policies continue to set a benchmark for regulatory excellence.
Top sectors to invest in:
Agriculture
ICT services
Tourism
Construction
Renewable energy
2. Togo
In a surprise result, Togo demonstrated an “extraordinary journey” of reform. Its strong improvements in reducing the time and cost of starting a business, coupled with extensive digitisation of public services, have boosted its appeal. Togo’s leap shows that focused effort can rapidly transform a nation’s business environment, particularly in operational efficiency.
Top sectors to invest in:
Agriculture
Logistics and transport
Mining
Energy
ICT and related services
3. Morocco
Morocco showed a successful integration into global supply chains and a strong culture of regulatory efficiency. Strategic investments in logistics, renewable energy, and advanced industrial zones have created a highly competitive environment, proving particularly attractive to international investors.
Top sectors to invest in:
Automotive engineering
Renewable energy
Aerospace engineering
Tourism
Agriculture
4. Mauritius
Mauritius reaffirmed its status as an international financial hub, global connectivity, sophisticated legal system, and exceptional ease of cross-border trade. Its robust investor protection laws continue to make it an ideal base for regional headquarters.
Top sectors to invest in:
Financial services
Tourism
Real estate
ICT and technology
Renewable energy
5. South Africa
The continent’s most industrialised economy maintained its position as a top contender. Despite inherent complexities, its sophisticated financial markets, advanced infrastructure, and strong institutional framework provide a solid foundation for large-scale investments and innovation, especially in renewable energy and fintech.
Top sectors to invest in:
Renewable energy
Mining
ICT and technology
Tourism
Financial services
6. Lesotho
Lesotho made a notable ascent due to impressive reforms in labour market flexibility and efficient contract enforcement, carving out a niche for specific manufacturing sectors.
Top sectors to invest in:
Manufacturing
Water and renewable energy
Agriculture
Mining
Tourism
7. Tanzania
Tanzania surprised many with its climb, largely because of the country’s efforts in simplifying tax procedures and enhancing access to credit for SMEs, leveraging its strategic location and growing domestic market.
Top sectors to invest in:
Mining
Tourism
Energy
Agriculture and agro-processing
Manufacturing
8. Côte d’Ivoire
Côte d’Ivoire, West Africa’s economic engine, was recognised for streamlining business registration and significant infrastructure investments, with a strong focus on agriculture and manufacturing.
Top sectors to invest in:
Agriculture and agro-processing
Energy
Manufacturing
ICT
Infrastructure
9. Ghana
Ghana continued to impress with improvements in digital infrastructure and trade logistics, solidifying its position as a regional powerhouse in tech and services.
Top sectors to invest in:
Mining
Energy
Agriculture and agro-processing
Manufacturing
ICT
10. Botswana
Botswana rounded out the list, celebrated for its consistent macroeconomic stability, low corruption, and transparent regulatory framework, offering reliability and certainty to investors.
Top sectors to invest in:
Agriculture and agro-processing
Tourism
Manufacturing
Financial services
- This list is based on the B-Ready report released in September 2024.
