Which countries are good to do business in Africa? On the continent, important changes have been recorded in the ranking of the Global entrepreneurship analyser. Morocco dethrones Algeria in the African Top 5.
This index allows to know and understand the entrepreneurial strengths and weaknesses in the 137 countries concerned by the study.
It thus enables the leaders of each country to better orient policies capable of fostering an entrepreneurial spirit and encouraging the creation of businesses that can contribute to growth and job creation.
This ranking is based on 14 criteria. These include: the quality of education, skills in the creation of start-ups, the perception of entrepreneurship by society, the level of risk, the level of internet use, the degree of corruption penetration, economic freedom and depth of the capital market.
At the African level, this ranking was marked by remarkable changes. Some countries have achieved important performances, making notable goodies that have shaken up the continental rankings.
At the African level, where entrepreneurship in 37 countries was analyzed, the ranking of the 5 African countries where it is good to do business places Tunisia first ahead of others.
Here are Top 5 African countries where it is good to do business
1. Tunisia: 42nd worldwide
Despite the country’s overall socio-economic situation, Tunisia has made a considerable jumped of 20 places compared to its previous rank to take the 1st African rank of the index from South Africa. It is now ranked 42nd in the world and 1st in Africa as a good place to do business.
Tunisia owes its rank to its performance in terms of innovation, to the quality of its human resources, notably thanks to its education system, the development of risk capital and its technological sectors. However, the country shows weaknesses in terms of economic freedom, acceptance of risk, etc.
2. Botswana: 52nd in the world
Botswana has jumped of 14 places from its previous ranking. This country, used to the top rankings at African level in many areas, owes its rank to its performance in terms of perception of entrepreneurship, acceptance risk, entrepreneurial culture, economic environment, etc.
The country shows, however, weaknesses in terms of innovation processes, the launch of innovative products, risk capital, etc.
3. South Africa: 55th in the world
The Africa’s largest economy loses its first place in favor of Tunisia. the country achieves its best performance in terms of economic freedom criteria, innovative processes, innovative products and the internationalization of its economy.
South Africa shows weaknesses which relate in particular to the development of risk capital and quality. human resources, the development of technological sectors, etc.
4. Namibia: 60th in the world
The level of internet use, economic freedom and the perception of entrepreneurship are among Namibia’s strengths.
The development of entrepreneurship faces many obstacles including the development of the technological sector, the quality of innovation processes, the development of risk capital and the quality of human resources linked in particular to the quality of the education system.
5. Morocco: 70th in the world
In this ranking, Morocco gained 5 places and dethroned Algeria from the Africa Top 5 of the best countries where it is good to do business in Africa.
Among Morocco’s strengths, there is the innovation process, the development of risk capital, entrepreneurial opportunities. risk acceptance, society’s perception of entrepreneurship and the level of use of the Internet.
Among the weaknesses of entrepreneurship development are the weakness of the entrepreneurial culture, the quality of human resources, economic freedom, etc.
It should be noted that in terms of the African ranking, in addition to Tunisia (+20 places), Ghana and Gabon were the best performers with respective gains of 13 and 11 places.
Finally, it should be noted that at the world level, it is the United States which monopolizes the first place in the world, ahead of Switzerland, Canada, Sweden, Denmark and Iceland.