Africa is open for business.
Looking to invest or do business in Africa? Here are the 10 best countries you should consider when it comes to business in 2019.
With the implementation of the economic reform programme coupled with a $12bn back from the IMF in the last quarter of 2016, Eygpt is one of Africa’s largest economies. The country has introduced new taxes and floated the currency in an effort to overhaul the economy, boost investor confidence and restore stability to capital markets. All this comes after falling six places in the “Doing Business Report 2018” which is published by the World Bank. Fun fact, it now takes 11 days to start a business in Egypt, compared to 16 days in the past.
9. South Africa
One of the easiest places to do business in Africa, no wonder why South Africa is the continents second-largest economy. After plunging into a recession in the second quarter of 2018, President Ramaphosa has seemingly rescued the country with his ambitious statements and his “stimulus and recovery plan.”
Although there’s a decline in short-term investment appeal because of high political risks, instability and low economic growth, Nigeria is still Africa’ biggest economy. With quite along hinging on the upcoming elections, investors are most likely waiting to see the outcome becoming making their move into the market. Nigeria was amongst the 46 economies in the world that improved across three or more categories, according to the World Bank. With the government introducing an online platform to pay for stamp duty, it is now easier and quicker to register a company in Nigeria.
With it’s bubbling culture, great food and amazing sights, experts predict that Morocco will soon be a financial hub, a friendly business hub that will connect European countries to the African market. When it comes to Ease of Doing Business, Morocco leapt from 114th to 60th between 2011 and 2019, a clear indication of an improved business environment.
One of the smallest market sizes in Africa, Mauritius consistently ranks higher than other African nations when it comes to Ease of Doing Business. The tiny island country sits in the 20th spot of the World Bank’s Ease of Doing Business index due to its stable political system, low taxes and liberal financial sector which make it an ideal place for investors.
The Horn of Africa, Ethiopia has recently through a world of historical political transformation after electing a new reformist Prime Minister. The government is opening up the economy to private investments, courting investors with tax incentives, investing in infrastructure and offering cheap labour. Also, Prime Minister Abiy Ahmed has announced his plan to sell a minority stake in state monopolies which include Ethio Telecom and Ethiopian Airlines Enterprises. According to the IMF, Ethiopia will be Africa’s fastest growing economy in 2019.
4. Côte d’Ivoire
Known as the world’s largest exporter of cocoa beans, Côte d’Ivoire was one of the top 10 improves in the Ease of Doing Business ranking. The time to process building permits has decreased, while a new system that allows patrons to pay taxes electronically has been introduced along with a credit bureau. Corporate income taxes can now be filled online, and the second largest port in West Africa and road networks are continuously being developed.
Ghana is thriving since the smooth transition of the Nana Afuko-Addo government a couple of years ago. The government has since promoted private sector in a bid to revive the non-oil and non-agricultural sectors, while commodities such as oil, gold and cocoa remain as the mainstay of Ghana’s $47billion economy. With further simplified importing systems and electronic customs clearance processing, Ghana’s government is working hard to build a reactive, robust and resilient economy.
Moving 31 spots in the overall Doing Business rankings, Kenya is one of the world’s best performers when it comes to Getting Credit and Starting a Business according to the World Bank. With improved laws which allow which aid the ease of accessing credit for business, the Kenyan government is on a mission to develop technological solutions for its agencies, working in collaboration with IBM to make registration of property, paying fees and obtaining digital certificates easier.
Rwanda is one of the fastest growing economies in the continent, currently averaging more than 6% growth every year. After replacing most of its bureaucratic structures with an electronic system, Rwanda significantly improved it’s Doing Business ranking heading into 2019, introducing free software that allows taxpayers to issue value-added tax invoices from any printer, a clear sign the county is on the right path. Fun fact, Rwanda is second only to New Zealand in the world when it comes to ease of property registration.