Top 3 African countries where investing is easier

Doing Business – Here is a recap of the African top destinations in terms of investments. This ranking is based on the Doing Business 2018, freshly published (tuesday, october 31st by the World Bank Group): a kind of “business weather report” to determine the best places in the world where the business climate is excellent, medium or hostile.

For this year (2018), the focus is on the ability of countries to introduce reforms for a business environment conducive to job creation. This justifies the title of the Doing Business 2018 report: “Reform to create jobs”.

And in this area, sub-Saharan Africa sets a new record, being the most represented region in the Doing Business 2018 ranking and being at the top of the most reforming countries, with three countries placed in the top 10 worldwide: Malawi, Nigeria and Zambia.

Kenya is nevertheless the African record holder in number of reforms implemented in recent years (6). Followed by Mauritania, Nigeria, Rwanda and Senegal with five reforms each, says the report.

As for North Africa, it is performing well in four areas: obtaining building permits, connecting to electricity, transferring ownership and paying taxes. In three areas, however, the region is lagging behind. These include obtaining loans, cross-border trading and insolvency settlement.

Thus, for the year 2018, the top 3 African countries where to invest is easier and profitable is as follows:

1- Mauritius (25th world)
2- Rwanda (41st world)
3- Morocco (69th worldwide)

Key indicators have been identified to measure business regulation and enforcement in 190 economies around the world, and in some cities at the subnational and regional levels.

These indicators help to determine the degree of regulation, for example the number of procedures needed to start a business or to register a commercial title.

Next, they assess the consequences of regulation, such as the time and cost required to perform a contract, the completion of bankruptcy proceedings, or the import and export of goods.

These indicators also measure the extent of the legal protection of the property, for example the protection of the investors against the abuses of company managers or the range of assets that can serve as a guarantee, in accordance with the laws on secured transactions.

Finally, a set of indicators makes it possible to assess the tax burden on businesses and measures various aspects inherent to the hiring of workers, Ecofin said in an analysis of the report.

2018 Doing Business Ranking of African Countries