Africa is one the fastest growing economies in the world and as such has become an attractive destination for people looking to diversify their business portfolio.
Both local and foreign industrialists are well aware of the vast economic opportunities that lay in the budding landscape of the African market.
However, like many other markets across the globe, there are set rules that are put in place to regulate how business is conducted.
Some of these rules can come across as friendly, while some appear to be very hostile. Businesses in hostile regions have been established and taken down, owing to how difficult running a business operation was.
While vice versa, some regions are receptive to business owners which has resulted in more and more foreign investments, coupled with a growing number of local businesses being set up.
A report by US News and World Report showed the 85 best countries for entrepreneurship in the world to thrive in.
This list was determined by taking the following meterices into consideration, connection to the rest of the world, educated population, entrepreneurship, innovation, easy access to capital, skilled labor force, technological expertise, transparent business practices, well-developed infrastructure, well-developed digital infrastructure, and a well-developed legal framework. All of which are parameters for a conducive working environment.
9 of these 85 countries were African. Below are 9 of these countries, and their Open for Business index.
The Open for Business score is determined based on an equally weighted average of scores from five country attributes that relate to how business-friendly a country is, including, bureaucratic, cheap manufacturing costs, corrupt, favorable tax environment and transparent government practices.
Morocco: Morocco is a country that has remained independent for much of its history. The Moroccan government has pursued privatization and economic reform since the 1980s. Its Open for Business score is 58.0, 31st in the world.
Tunisia: This North African country has boasted a strong market-based economy and relatively liberal social policies that were quite contrary to other regional neighbors. It has an Open for Business score 54.1, 43rd in the world.
Kenya: This East African country has been referred to as the cradle of humankind by scientists and is one of the most technologically advanced countries on the sub-continent. It has an Open for Business score of 53.9, 44th in the world.
Cameroon: This country spots a youthful population of more than 29 million people, and is situated between Africa’s largest economy, Nigeria and Equatorial Guinea. It has an Open for Business score of 53.1, 50th in the world.
Ghana: Often referred to as the Gold Coast, Ghana is one of Africa’s most economically ingenious countries having demonstrated an ability to turn even the most despondent economic situation around. It has an Open for Business score of 51.7, 52nd in the world.
Zambia: Situated in the Southern region of Africa, this country boasts some of the largest mining zones in the region outside of South Africa. Majority of Zambia’s economy is based in the agriculture sector, which employs approximately half of the population. It has an Open for Business index of 49.0, 60th in the world.
Egypt: Standing as Africa’s second largest economy, Egypt has one of the richest historical monuments in the world,
attracting thousands of tourists every year.. Its Open for Business score is 44.3, 69th in the world.
South Africa: South Africa is Africa’s third largest economy second only to Egypt and Nigeria, with a rich history, impressive terrain, wildlife and cultural diversity. The country’s Open for Business score is 41.5, 74th in the world.
Algeria: The World Bank classifies Algeria as an upper-middle income nation. The country is heavily reliant on energy exports in natural gas and oil. This country has an Open for Business index of 41.5, 75th in the world.
