5 Top countries entrepreneurs should exploit for business expansion
Report: Infomalawi Reporters
In 2017, various African economies continued to make strides to attract foreign investment. What could be the reasons to draw the most investors though?
Africa offers great future business prospects with its 1.1 billion people that make up 15% of the world’s population. When a business decides to expand into a foreign market, various market factors are considered and sustained positive economic growth is important. We now look at the Top African countries for doing business.
You will observe that countries that are not solely reliant on commodities have higher ranking and countries that rely on agriculture to sustain the economy have not made and do not make a mark into the top.
Five countries have been identified among other factors; expanding through innovation and lowering stringent requirements to encourage new business development. These countries have not been placed in any order.
Mauritius is one of the top countries for business because the country has invested resources for the expansion of information technology (IT) and renewable energy sectors. Historically though, the country thrived on successful investments in tourism, textiles, sugar and financial services. The new focus offers great opportunities for entrepreneurs to grow their businesses.
The World Bank’s Ease of Doing Business report ranks Mauritius 49th overall and first in Africa. The engine for growth has been, improving its business platform, transforming from low-income, agriculture-based economy into a diversified, upper-middle-class economy with thriving opportunities for a diverse group of business sectors.
- South Africa
South Africa faces serious challenges but has one of the most resilient economies. The country still faces lows with unemployment, poverty, credit rating, and inequalities but it thrives in investor protection and property rights.
The country benefits from a middle-income market that continues to grow propelled largely by its well developed financial, legal, energy and transportation business sectors. Further, the country’s stock exchange is the largest in the continent and ranks among the top 20 in the world.
The newest best areas for investment for entrepreneurs moving into South Africa include manufacturing, tourism and education.
Rwanda suffered many years of civil war but now it is a different story of success. The country is second best place to do business in Africa according to the World Bank’s report and is ranked 56th in the world.
Tourism is one sector that has grown comparatively well in Rwanda. Some success points include; the process of obtaining electricity, an important source of energy was shortened to allow the length of time required for connection to the electricity grid to reduce to 30 days.
Commitment to reforms and focus on improving the economy and business climate continue to be the main drivers of the turnaround. Reports indicate that entrepreneurs starting a business in Rwanda can expect to hit the road in just three days. Costs of registering a new business are negligible. Sectors most attractive to business in Rwanda include;
- Information Technology
- Real Estate
Botswana enjoys unrivalled political stability in the region since independence. It boasts one of the fastest growing economy rates per capita in the world. Traditionally, its success has been out of diamond and precious metals mining, but the government is redirecting resources to different industries to diversify the economy.
Some of the advantages to Botswana are strategic location, skilled work force, and stable political environment.
Botswana currently ranks top on the Ease of Doing Business report by making the import and export process faster by shortening the process to one week. It also ranks well in areas of Corruption and Property Rights.
Kenya makes the feet because of its large investments in transportation, telecommunications and energy. For instance, Google recently invested $700 million in a wind power and grid infrastructure project to improve renewable energy in the country.
Kenya also benefits businesses with availability of high-speed internet, knowledgeable workforce and a time zone compatible with Europe and Asia. The country is very attractive to startups.
Furthermore, Kenya reduced its time to comply with tax obligations with the view to help investors any call. Some reforms have included eliminating stamp duty fees, along with reducing the requirements to sign the compliance before a commissioner of oaths. The foregoing according to the Ease of Doing Business report enable companies have an easier time starting operations in the east African country.
Africa as a whole is on the rise. Despite considerable external challenges and the fall in oil and other commodity prices, many nations have demonstrated willingness to achieve sustainable growth by diversifying their economies and introducing policies to attract foreign direct investment.
If you want to expand your business, Africa is definitely one attractive destination.