Each year, the London agency GEDI Institute, in collaboration with the Global Entrepreneurship Network, report a list of African countries where the entrepreneurial environment is the most favorable. This study provides the top 15 countries that have worked effectively to promote entrepreneurship, a work that is recounted in a report called the Global Entrepreneurship Index. The last study carried out by the team thus made it possible to analyze the entrepreneurial environment in 132 countries with a ranking that was established on the basis of a number of criteria such as:
- The country’s GDP per capita
- The level of income of the inhabitants and its level of distribution
- Digital and technological development
- Performance in environmental and ecological protection
- Freedom of the economic environment
- Political stability
In this report, we could see that African countries are still struggling to position themselves favorably against countries like the USA, Canada and Australia. The latter who also form the top trio of the global list. However, when comparing with the results of last year, growth has been noticed.
We have thus checked the 15 African countries best placed in the global list in order to define those which are the most favorable to the entrepreneurial environment in Africa.
1. South Africa
Among the best placed African countries in terms of entrepreneurial environment, South Africa is in first position. However, it only ranks 53rd globally. Despite everything, this rank shows that South Africa has always affirmed its desire to clean up the economic and entrepreneurial landscape and wants to be the head of the wagon for other African countries. It is also one of the BRICS member countries where emerging countries such as Brazil, Russia and India are present, it is also South Africa which holds the first place.
Tunisia is also one of the most prolific countries on the African continent in terms of investment and entrepreneurship. The entrepreneurial environment in the country is still favorable despite going through a slight turbulence of political instability. Tunisia is also ranked 7th among Arab countries and 62nd internationally.
The progress of the land of Tsawanas is felt on the world landscape year after year. Indeed, currently, Botswana ranks 66th in the world in terms of favorable business environment. This progress is mainly due to the work done by the Botswana state to develop its economy and its entrepreneurial landscape. The country has also made a great effort in terms of good governance over its mineral resources and at the democratic level.
Also in the southern part of the continent, Namibia is also at the top of the list of African countries where the entrepreneurial environment is prolific for investments. Currently, Namibia is one of those countries with good economic stability and where there is good management of underground resources. Which ranks her 4th in this list and 73rd in the world.
In 75th place in the world ranking of countries where the entrepreneurial environment is favorable, we find Algeria. It is a country categorized as “fairly good” in the Global Entrepreneurship Index report. Despite this good position, there is a lot of instability in Algeria in the oil sector, but also in energy management. What has allowed him to position himself favorably is his work in venture capital and human resources management.
A gain of 4 places is the progression this country has made in just one year. Ranking 78th globally, the work of the Moroccan government in terms of governance and the promotion of entrepreneurship largely justifies its place and its progress.
Of course, Libya has suffered a severe blow in its political and security environment recently. However, that did not prevent the country’s leaders from focusing their efforts on restoring the entrepreneurial environment and the economic landscape of Libya. It thus ranks 79th in the world and is considered a country where it is advisable to do business.
Nigeria may be suffering from waves of terrorist attacks and insecurity in the north, but its government is doing a good job of managing Africa’s most populous country. It was thus able to reach 85th place in the list of countries where the entrepreneurial environment is secure.
Gabon is also one of those African countries that are making progress in terms of the entrepreneurial environment. Indeed, with its oil reserves and forest resources, the country is particularly appreciated by investors. However, its rank at the world level, 86th, is also explained by the disparity in income distribution.
Egypt has a high unemployment rate in the Maghreb country. A rate that stands at 12.9% of the working-age population. There is also a sharp decline in the tourism sector in this region. Despite everything, the Egyptian government is working towards the modernization of the country and aims to promote entrepreneurship in its strategy. The country also optimizes the entrepreneurial environment for the integration and involvement of its young people.
Swaziland is one of the countries close to South Africa which benefits from exchanges and partnerships with the latter. It is above all the service sector which is very favorable in the country since it provides 40% of its GNP. However, it should also be noted that it is the country that has one of the highest unemployment rates in Africa with 34% unemployed.
In the 99th place in the world, we find Ghana. It’s a place that is not very flattering internationally, but on the continent Ghana is one of the countries with the most prolific entrepreneurial environment. This is confirmed by the wealth it has, whether in agriculture, minerals or oil resources.
Zambia is a country very rich in agricultural products and natural resources. Globally, it is in 102nd place, but its economy is driven by mining, agriculture and tourism.
According to the Global Entrepreneurship Index report, Kenya ranks 104th among countries with a positive entrepreneurial environment. This position is above all the effect of a very large inequality in the distribution of income in the country (national GDP: 32,417 million dollars, GDP / inhabitants: 888 dollars).
Along with Ghana, Nigeria and the Ivory Coast, Senegal is one of the most economically powerful countries in the western part of the African continent. Internationally, it is in 106th place in the entrepreneurial landscape.