Africa has a lot of investment opportunities, but it will be highly risky to just start investing randomly. Having a sound knowledge of the African countries that offer the most favourable climate for business can go a long way in determining the success of your business.

The World Bank’s Doing Business 2020 report ranks the best countries to do business in Africa according to the willingness of these countries to improve their administrative procedures. This is most evident in the reforms these countries make to ease the creation of small businesses.

Mauritius

Rank in Africa: 1

Rank in the world: 13

Mauritius has one of the continent’s smallest market sizes, meaning some investors prefer to ignore it. However, in terms of ease of doing business, the state has consistently ranked higher than other African countries. In the World Bank’s ease of doing business report, Mauritius ranks no.1 in Africa.

This small island country’s place at the top can easily be linked to her stable political system, the liberal financial sector and the low taxes that promote the creation of businesses which has made it a perfect environment for investors who prefer an ecosystem that is business-friendly and less risky.

Rwanda

Rank in Africa: 2

Rank in the world: 38

Rwanda’s economy is growing at a rapid rate averaging more than 6 per cent per year. The country reported the greatest number of market reforms in the area last year. According to the World Bank Rwanda has conducted the most reforms since the Doing Business report was launched 16 years ago. 

The ease of starting a company in Rwanda is one of the major points of progress marked out by the World Bank. It has implemented an automated framework for its bureaucratic structures and is only next to New Zealand in the ease of property registration.

Morocco

Rank in Africa: 3

Rank in the world: 53

In addition to its vibrant community, excellent cuisine and awe-inspiring scenery, Morocco is renowned for its pleasant business climate. The highly relaxing environment has helped make the country a financial centre and gateway through which European countries can enter the African market.

Kenya

Rank in Africa: 4

Rank in the world: 56

The nation was one of the world’s top players in increased access to credit and businesses creation. The government of Kenya has also partnered with IBM to develop technical solutions for its departments, which have since facilitated property registration by implementing an online system for paying fees and receiving digital certificates.

Kenya’s economy is expected to continue growing at 6.1 per cent, according to the International Monetary Fund (IMF) projections or at 5.9 per cent as projected by the world bank. What’s almost certain is that the country would remain East Africa’s leading regional hub for information and communication technology, financial and transportation services.

Tunisia

Rank in Africa: 5

Rank in the world: 78

After decades of economic struggles due to government policies, Tunisia’s economy is in the process of being liberalised. For over a decade, careful economic and fiscal planning has resulted in modest but sustained growth. Historically, Tunisia’s economic growth has focused on oil, phosphates, agri-food products, the manufacture of car parts, and tourism.