You might be interested in starting a business in any African country but have no clue on how to get started, here is a quick guide.
Even though it seems that Africa is still lagging when compared with other continents, it’s an indisputable fact that this continent has been experiencing fast growth. African countries are a good place for business because this continent is the home of most natural resources and also the future economic growth engine of the world.
As a matter of fact, many entrepreneurs and investors around the world are beginning to harness the potential that some African countries offer businesses. One of the major traits that have drawn the attention of these entrepreneurs and investors to Africa is Africa’s fast growth. African countries generally have a growth rate of 5.6% annually.
Other reasons why major investors commit their resources to start a business venture in some African countries include a high population of youth, a large workforce, security, and favorable government policy. Also, a stable social-political environment is a major factor in consideration.
To help you choose the best location for your new business in Africa, I will be listing the ten best African countries where you can start a business and the reasons.
Best countries in Africa to start a business
Here are the best countries to start a business in Africa:
1. Egypt
When talking about the wealthiest countries in Africa, Egypt can’t be left out. It has a total population of over 95 million people with a stable mixed economy and an average growth rate of 3-5% in the past 3 years. It’s not surprising how Egypt has made it again to be one of the countries booming for business establishment.
The important reason why you should choose Egypt is the ease of doing business and the rapid development in their economy which comes from a structural reform of policy such as fiscal, reduced taxation, monetary policies, new business legislation, and privatization. All of this favors the growth of businesses and prompts increased foreign investment.
You may also like: 10 Benefits of the African Continental Free Trade Area (AfCFTA)
2. Mauritius
In 2020, Mauritius was rated as the best country in Africa to do business and 13th in the world, and it still maintains its standard of facilitating business growth. It has a mixed developing economy based on finance, export, agriculture, and tourism. Mauritius meets every criterion you should look out for when starting a business.
It is a peaceful country with a sound social-political system that favors the growth of industries. Favorable tax law, a stable and diversified economy, and peaceful coexistence are what make Mauritius a place of choice for investors. Despite being a tiny island, its ease of doing business has brought her into the limelight among other countries.
3. Rwanda
Another fast-growing country you can decide on is Rwanda. It has an average growth rate of 6% annually since 2000 with a 76.5 rating. After New Zealand, Rwanda is also ranked number two in the world with ease of property registration making business establishment relatively easy.
Rwanda is a peaceful state that favors the growth of new companies or startups. It has erased all bureaucracy systems and replaced them with an electronic system. Other perks that Rwanda offers new businesses include a good economy, a violent-free environment, and tax reduction.
Check this out: Best 10 International money transfer platforms for Africa
4. South Africa
South Africa is a country with a large economy and a whopping GDP of $345 billion. It has a population of over 50 million people. The country is blessed with many natural resources and infrastructure with efficient energy and finances.
South Africa is the choice of many investors because of its thriving economy, and social-political environment. South Africa has an advanced financial and legal structure making it a home for international firms like Shoprite, MTN, etc. It is one of the best countries to consider when starting a business.
5. Morocco
Morocco has great financial institutions and framework and hence it is classified as the 5th African economy by GDP. One thing that makes this country unique is its diversified economy. The key sector of their economy is agriculture, tourism, textiles, phosphate, and automobile.
No doubt, Morocco is the leading pathway from Europe to Africa due to its several financial hubs. Its viable economy, high population of youth, and large workforce make it a business-friendly country.
6. Kenya
The World Bank rates Kenya as the top performer in starting a business and getting credits. Kenya ranked 56th globally and partnered with American giant IBM to solve diverse business issues by building technological solutions.
Kenya has elaborate rules that make business creation and generation of finance relatively easy. In recent years, their economy has witnessed a 6% economic growth rate. It is also one of the major hubs for fintech companies.
7. Tunisia
Tunisia is a North African country with diverse mineral resources. In 2020, it was ranked 5th in Africa and 78th globally based on ease of doing business. It has an 80% literacy rate, many of which fall within the age bracket of 18-25 years.
This means more workforce is available to be utilized in this country by new businesses. The country also has good infrastructure, and a gross domestic product (GDP) of $46.99 billion, thus making Tunisia a country to look out for by investors.
8. Ghana
With a population of about 28 million and thirty years of good governance coupled with a relatively stable economy, Ghana remains one of Africa’s most diverse and strongest countries.
It is a home for natural resources like cocoa, oil, gold, hydrocarbons, etc. Their industrial sector also records the highest growth rate of 11.5% which is quite good for the expansion of businesses.
9. Namibia
Namibia is ranked the 5th world producer of uranium. It relies on the mining and exportation of natural resources for its booming economy.
Mining accounts for 11.5% of their GDP and provides 50% of the country’s foreign exchange. Namibia is an exact place to start a mining business or uranium investment.
10. Ivory Coast
Ivory Coast is a major gateway to most landlocked countries in West Africa. It is ranked 10th in Africa based on ease of doing business.
Its stable social-political environment and strong economy seem to be responsible for attracting global investors.
Conclusion
These are only the ten best countries in Africa to start a business; however, you can also try other countries like Seychelles, Togo, Nigeria, and Zambia.
