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Top 10 African Countries To Start a Business in 2023

Despite Nigeria’s absence from top 10 best investment destination in Africa, Buhari insists it’s most viable
Top 10 African countries to start business in 2022

If you are interested in investing in Africa but don’t know which of the African countries to invest your money, here are top 10 best African countries to invest or start a business in 2023.

Africa is endowed with a thousands of natural resources that are raw materials for the several industries around the world. In fact, Africa is often regard as the world’s deposit of raw materials. In addition, African countries have a teaming young population that can provide cheap labour. Africa holds the largest youth population of any continent in the world and by 2050, it’s expected to double in population from 1 billion to 2.4 billion, with more than half of those people being under the age of 25.

Top 10 African countries to start a business in 2023 include Mauritius, Rwanda, Namibia, Egypt,….  With the rich natural resources in this continent, the undisputable hardworking population, even their huge investment opportunities, have made Africa a spot light continent starting a business.

Why Invest in Africa?

There are a number of reasons why you should make Africa your investment destination.  Recently, the continent was named the world’s fastest growing continent as it grew at a rate of 5.6% a year, and its GDP is expected to rise by an average of over 6% yearly. It is also on record that a lot of international business observers have named Africa as the future economic growth engine by the world. Africa holds the largest youth population of any continent in the world and by 2050, it’s expected to double in population from 1 billion to 2.4 billion, with more than half of those people being under the age of 25.  Although Africa is a right choice for investment, doing business In Africa comes with certain risks like corruption, bureaucracy, lack of transparency, etc.

Top 10 Best African Countries To Invest Or Start A Business In 2023

1. Egypt

Having a population of approximately 95 million, Egypt is one of the wealthiest countries in Africa and has a rather stable mixed economy and it enjoys an average growth, averaging 3% -5% in the past quarter- century. There has been a lot of development stages on the economy where the public and private sectors played roles that imported positively on the economy of the country. Since 2000, the pace of structural reforms, including fiscal, monetary policies, taxation, privatization and new business legislations, helped Egypt move towards a more market-oriented economy and prompted increased foreign investment.

2. Mauritius

The economy of Mauritius is a mixed developing economy based on agriculture, exports, financial services, and tourism. Since the 1980s, the government of Mauritius has sought to diversify the country’s economy beyond its dependence on just agriculture, particularly sugar production.

Mauritius may not be the first country to pop on your list when thinking of doing business in Africa. However, this country has set the pace for other African countries. Placed 13th in the latest World Bank ease of doing business rankings, this small nation has solved most issues any investor would face. This country takes the number spot on the list top 10 African countries to start a business in 2023.

Mauritius is a politically and socially stable economy that ranked 21st among the most peaceful countries in the world. Its democracy is one of the strongest on the continent. Plus, its tax laws are pretty relaxed for investors. The African country recently signed a trade agreement with China, making it a transportation and financial hub.

3. Rwanda

Since 2000, Rwanda’s economy has grown at an average of 6% year over year. With a 76.5 rating, the Sub-Saharan African country ranks 38th on the World Bank’s ease of doing business rankings. Rwanda is ranked number two in the world for ease of property registration, second only to New Zealand.

In recent years, the East-African nation has implemented the most business reforms in Africa. The country has put in place electronic systems that have helped replace its stifling bureaucracies. Now, taxpayers can issue value-added tax invoices using free software.

4. South Africa

This country boasts of a very large economy with a GDP of 354 billion US dollars and with a population of about 50 million people. The country has well developed infrastructures with efficient financial, legal, energy, tele communication and transport systems. South Africa has an abundant supply of natural resources; well-developed financia Legal, communications, energy, and transport sectors; and a stock exchange that is Africa’s largest and among the top 20 in the world. While it’s tourism potentials are not to be neglected as South African tourism sector is equally healthy.

5. Kenya

According to the World Bank, Kenya is one of the world’s top performers in Starting a Business and Getting Credit. The country, ranked 56th globally, has collaborated with American giant IBM to build technological solutions that can help its various agencies solve diverse business issues, including property registration.

Kenya’s economy has witnessed enormous growth between 5 and 6% in recent years. The country is also one of the major ICT hubs on the continent, home to many big tech startups in several sectors, including fintech and transportation.

6. Ghana

Ghana has a population of about 28 million. Ghana’s economy is one of the most diversified and strongest in Africa, following a thirty years of relative stability and good governance. The country is home for natural resources like industrial minerals, hydrocarbons and precious metals. Real estate prices are still reasonable, compared with much of the estate Continent, and foreign property ownership in Ghana is allowed. The capital of Ghana, Accra, is one of the most Iivable frontier market cities in the world. Ghana’s economy expanded for the third, successive quarter in March 2017, to 66% up from 4.4%, the previous year. The industry sector recorded the highest growth of 11.5%, compared to 1.8% in s 2016, with significant contributions of this from mining and petroleum: One of the most stable countries on Africa’s west Coast, Ghana, is expected to enjoy 32.7% capital growth over the next five years.

7. Botswana

The Country has high foreign exchange reserves, which have enabled it to weather the pandemic-induced economic storm, better than most countries. It is rated the least corrupt Country in Africa, according to the international Corruption Watchdog Transparency international. poverty has also beer reduced while education has become widespread in the country. Though much of Botswana’s economy is based in diamonds and other minerals, it has a substantial financial reserve and it has equally developed it manufacturing sector, thus, diversifying the economy. Since it’s independence from Britain in 1966, the country has attained the highest average growth in the world, which is roughly 9 percent. The country has also brought its GDP per capita from us $70 to $14,000 today, making it an upper-middle income economy, comparable to Chile and Argentina.

8. Tunisia

Presently the 78th country on the ease of doing business ranking, Tunisia boasts an 80% literacy rate, one of the highest in the world. The North African nation also has one of the youngest populations globally, with the average Tunisian in the 18-25 age bracket. This implies that there are numerous educated young workers in Tunisia whose energy and resources can be chanelled towards productivity.

Tunisia is predominantly an Arabic speaking country. Nonetheless, many of the people also speak French and English fluently.

This is one of the most peaceful North African countries. The country has well-educated citizens, good infrastructure and a Gross Domestic product of 46.99 Billion Billion US dollars, growing at a rate of 2.5%. Key exports of the country includes textiles and apparel, food products, petroleum products, chemicals and phosphates, with about 80% of exports bound for Tunisia’s main economic partner, The E.U. As business climate improves, structural reforms are implemented and security and social stability will increase, thus, making Tunisia a country to look out for..

9. Morocco

This country is a major player in African economic affairs and because of that, it is considered the 5th African economy by GDP. Key sectors of the economy include agriculture, tourism, aerospace, automotive, phosphates, textiles, apparel and sub Components.

In less than ten years, the North African country has gone from 114th to 53rd on the ease of doing business rankings. Morocco has become Europe’s pathway to Africa, also becoming a leading financial hub in the process.

The country expects to grow 3.1% on average in the next few years as its tourism and manufacturing sectors have been selected to drive economic growth.

10. Namibia

This is the world’s 5th largest producer of uranium. Her economy depends heavily on on the extraction and processing this mineral resources for export. Mining accounts for 11.5% of GDP, but provides more than 50% of the country’s foreign exchange earning. Rich alluvial diamond deposits make Namibia a primary source for gem-quality diamonds. The Namibian economy is closely linked to South Africa with the Namibian dollar, pegged one-to -one to the south African rand. Namibia is ranked 5th in Market performance and 55th in Trade freedom. Namibia is a sure place for business of mining or uranium investment.

This list is not exhaustive. Countries like Zambia, Seychelles, Cote d’ivoire, Algeria, Burkina Faso, Nigeria, etc. also have strong stable economies and are also looking for investors to help develop the countries.

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