Here are the best countries to start or expand your business in Africa

.

Doing business in Africa
World Bank´s annual “Doing Business” report presents Africa’s best countries you should consider to start  or expand your business this year


World Bank’s annual “Doing Business” report presents an investigation into world’s economies and regulations that enhance or constrain business activity.

Doing Business provides investors and entrepreneurs across the world with information of 189 economies. It gives a deeper look into business reforms such as regulations and governance, indicators which it says “have huge long-run implications for an economy’s health, performance and growth,” although these (indicators) are not as obvious as macroeconomic ones.

The report titled, “Measuring Regulatory Quality and Efficiency”, presented data on these countries focusing on 10 areas of regulation including: starting a business; dealing with construction permits; getting electricity; registering property; getting credit; protecting minority investors; paying taxes; trading across borders; enforcing contracts, and resolving insolvency.

Speaking on regulations, the report notes that “Without the rules that underpin their establishment, operation and dissolution, modern businesses cannot exist. And where markets left to themselves would produce poor outcomes, well-designed regulation can ensure outcomes that are socially optimal and likely to leave everyone better off.” The report adds that regulations “can lead to fairer outcomes by correcting for imbalances in power between different players.”

Using this analysis, below are Africa’s best countries you should consider to start or expand your business this year.

1. Mauritius

Standing at number one in Africa is Mauritius taking position 32 in the global market ranking. Using its strategic geographic location, Mauritius has made some reforms like those ‘dealing with construction permit’ which has pushed the country 39 ranks up globally.

In 2014/15, 17 economies among them Mauritius, streamlined internal review processes for building permit application. This in turn made the process faster and efficient for establishing businesses in the country.

Mauritius reduced the time dealing with the permits through hiring of a more efficient subcontractor to establish sewerage connections. Additionally, it is possible to pursue this process simultaneously with another procedure.

Other qualities that make the nation a better option for business this year include the fact that it takes 14 days to register a property, 6 days to start a business, and 81 days to get electricity.

Over the years, Mauritius has taken dominance in the African rankings for its competitive approaches in matters regulation and taxation.

2. Rwanda

Rwanda remains the best performing country in the East African region besides being 2nd easiest destination to do business in Sub-Saharan Africa according to the report.

Taking position 62 in the global ranking, Rwanda has seen implementation of some reforms that have kept it afloat in the competitive economy.

In the period under review, the East African nation made notable improvements for resolving insolvency and for protecting minority investors. In Africa, Rwanda dominates when it comes to ease of starting and registering a business.

The report was launched in the country by the Manager of World Bank’s Doing Business, Rita Ramalho last year. According to Ramalho, Rwanda excelled on the indicator of registering property where it garnered 25 out 30 points.

When it comes to ease of getting credit, Rwanda was ranked second best globally after Georgia and remained on top of the list in Africa.

In comparison to Mauritius, it will take up to 32 days to register a property, 5days to start a business, and 34 days to get electricity.

3. Botswana

Political stability provides good ground and stimulus for investment, and Botswana has managed to remain politically stable over the years. This, and the fact that it is among world’s least corrupt countries has made the nation a better location to do business.

Botswana is ranked 3rd in Africa after the decline in ranking by South Africa. However, it stands at position 72 in the global ranking.

For those looking at electricity supply as a requirement for business, then Botswana is the place to be this year.

In comparison to the first two countries, registering a business will take 12 days, starting a business takes 48 days, while getting electricity takes up to 77 days.

Interested in doing business in any of these countries? Please leave us a message and we will get back to you shortly.

News and business opportunities in Mauritius

  • Mauritius Novasigma
    Mauritius: The tropical paradise with a flourishing economy
  • Here are the best countries to start or expand your business in Africa

Novasigma provides international accounting services, company formation services, legal, business and tax advisory services | Terms of Use & Terms of Business | © 2016 NOVASIGMA Global - Accounting & Law Cooperative ("NOVASIGMA LIMITED"). Member firms of the NOVASIGMA Global - Accounting & Law network of independent firms are affiliated with NOVASIGMA Global - Accounting & Law. NOVASIGMA Global - Accounting & Law provides no client services. No member firm has any authority to obligate or bind NOVASIGMA Global - Accounting & Law or any other member firm vis-à-vis third parties, nor does NOVASIGMA Global - Accounting & Law have any such authority to obligate or bind any member firm. Independent registered advisers, lawyers and accountants are not owned by, affiliated with or supervised by Novasigma or its affiliates. Novasigma provides custody, trading and operational support services for advisers, lawyers and accountants. Not all products and services available through Novasigma and its affiliates are available through advisers, lawyers or accountants. Registration does not imply a certain level of skill or training. Depending on jurisdiction there might be eligibility requirements to work with a dedicated Financial Consultant, Lawyer or Accountant. Wealth management, accounting, audit and legal services refers to products and services available through the operating subsidiaries of the Novasigma Corporation of which there are important differences including, nut not limited to, the type of advice and assistance provided, fees charged, and the rights and obligations of the parties. It is important to understand the differences when determining which product and/or services to select. Novasigma provides a full range of business, financial, banking and tax advisory, accounting and legal services through its operating subsidiaries.

All rights reserved. NOVASIGMA is a trademark of SilverFox & Co. Inc. Online services by NOVASIGMA LIMITED - Suites 41/42, Victoria House 26 Main Street, Gibraltar GX11 1AA.

bitpay
Bitpay
Latvijas Pasta Bank
NTL Immigration
CM Asesores
Blue Orange Bank