Africa is fertile soil for investors and businesses to succeed because opportunities lie in abundance in this part of the world. Africa as a continent has rapidly become an emerging market for companies. It is the fastest-urbanizing region in the world and the second-fastest-growing region after emerging Asia.
In a McKinsey & Company article in 2010, it was predicted that North Africa and Sub-Saharan Africa are taking part in economic renaissance after many years of stagnation. There has been massive growth for businesses of all industries ranging from technology, FinTech, agriculture, transportation, the list goes on. Africa is a continent ripe for entrepreneurship and innovation, offering companies so much room for growth and an epicenter for business development, production, and incubation.
However, your business growth in Africa depends mainly on first, your strategy, then its execution. Not only will your investment grow if you get your execution right, but your profit margin also grows too. Some of Africa’s most prominent brands like Dangote, Kenya’s Equity Bank, Ethiopian Airlines, DStv, MTN, and co, have successfully built businesses impacting and connecting people to previously unavailable services.
Are you looking to invest in Africa’s emerging markets?
Here are ten countries with ease of doing business as ranked by World Bank
The Ghanaian government is working hard to build a resilient and robust economy by promoting private sector-led growth to revive the non-oil and non-agricultural sectors. The rapid economic growth it has also enjoyed over the last few years has been linked to being an oil producer in 2010.
- Cote d’Ivoire
Cote d’Ivoire, the world’s largest exporter of cocoa beans, is one of the top 10 improvers globally in the Ease of Doing Business rankings. Processing time for building permits has improved too in the last two years. A country whose economy is agro-based is expected to maintain a steady growth rate of 7% and above even in the coming year. These aren’t the only advantages the West African nation has to attract potential investors. Cote d’Ivoire has the second largest port in West Africa, making it favorable to import and export commodities into and out of the country.
Nigeria is Africa’s biggest economy and the continent’s most populous nation, with over 200 million people. That is a staggeringly huge number of consumers for any business to tap into, irrespective of the industry. Nigeria was among the forty-six most improved economies across the globe, as analyzed by the World Bank. Nigeria presents more opportunities for investors not only because of the enormous population the country has but also because of the ease of processing business registrations and paying stamp duties
The IMF had predicted the landlocked nation to be Africa’s fastest-growing economy in 2019 with a projected 8.5% growth rate. Their reason is not farfetched. Ethiopia has transformed into one of the continent’s manufacturing hubs. Tax incentives and infrastructure investments are favorable. With cheap labour, a prevalent factor, businesses, and investors have much to gain in the long run.
The East African giants rank high when it comes to getting access to credit and starting a business, according to World Bank. Kenya boasts being the leader for innovation in information and financial technology and transportation services in the Eastern region.
The Kenyan government is also making efforts to develop and improve technological solutions for its agencies. This initiative has resulted in making business and property registrations easier as payment systems and digital certificates can now be paid and obtained online.
Mauritius is probably not a name you were hoping to see on this list because they are a small island nation. However, irrespective of their relatively small market size, the country is an ideal business-friendly environment if you prefer a less risky investment. Mauritius currently lies in the 20th position in the ease of doing business index. It has consistently ranked higher than most African countries.
A stable political system and low taxes come as an advantage to investors. The country also happens to be the first African nation to sign a full free trade agreement with China.
Rwanda is one of Africa’s fastest-growing economies and a nation that has carried out the most reforms since the World Bank began the Doing Business initiative 2005.
The ease of doing business in Rwanda has transitioned from the traditional bureaucratic structures to a digitized system. Even more remarkable is that New Zealand is the only country to beat Rwanda to the first position in the ease of property registration in the world.
The North African nation may be most known for its amazing landscapes and culture. Still, it is an amazing environment for investors and businesses on the business end of the country. It shouldn’t come as a surprise to you that Morocco moved from the 114th position to be ranked 60th position in the Ease of Doing business between 2011 and 2019. It goes to show how favourable climes there has seen sustained improvement. While its tourism industry is the pacesetter, the manufacturing industry is also expected to benefit from foreign investments
- South Africa
South Africa is by far the most industrialized economy and one of the easiest countries to do business in Africa with its advanced legal and financial structures. The country may have gone into recession in 2018 and only grew by 0.8% in that same year, but they remain a powerhouse clime for investors. With its rich culture, tax, and business-friendly environment, South Africa has a vast sector for investors to carve a niche. Tourism and mining are two economic drivers for the nation.
The North African giants boast being the largest economy in that region and Africa at large. Egypt has revitalized its economy to boost investors’ confidence and restore stability to capital markets since it got the backing of a $12 billion loan from IMF. Egypt’s reforms dragged it eight places up in the 2019 edition of the Ease of Doing Business report.
The country has carried out five business reforms in 2017, which is the highest, as noted by the World Bank. The highest number of reforms to be carried out in one year in a decade and part of the reforms made it possible to start a business within 11 days as against the initial 16 days. There was also an improvement in transparency to protect the rights of minority investors.
Investing in Africa comes with its challenges, but you can relax. I am here to be your guide.
At Attind Consulting, we are dedicated and passionate about helping you through your journey into the African market. We render a range of services for our clients to help them transition smoothly into the market.
Let’s talk about bringing your business to Africa!