At the end of December, the American magazine, Forbes, released its ranking for the “Best Countries for Business”, once again highlighting the growing level of investment in Africa. In fact, following analysis of reports throughout 2018, the magazine set 15 different criteria to establish this ranking. The index of economic freedom was taken into consideration as well as infrastructures and the state of innovation.
Economist, Mark Zandi told the magazine that in order to gain a high ranking, there must be a strong legal system in place, thorough adoption of property rights and clear rules and regulations. In addition, he added that corruption has a strong impact on the ranking as it affects whether the economy runs smoothly.
For African countries, Mauritius takes first place. This island ranks in 39th place globally out of 161 states evaluated. This achievement is due to its stable democracy, strategic location between Africa and Asia, an advantageous tax system and sophisticated infrastructures. We should also consider Mauritius’s bilateral cooperation with various other African countries. In addition, Mauritius is looking to diversify into areas relevant to the island. For the moment, the island depends mainly on tourism, real estate, the digital economy and financial services. In the future, it would like to become more involved in protecting the natural environment and oceans, renewable energies and water management.
As for the remainder of the continent, South Africa comes in 2nd place, ranking 59th globally, followed by Morocco, achieving 62nd place.
Conversely, in the bottom of the rankings, we find 7 African countries among the last 10 countries. In fact, the Central African Republic closes the ranking in last position. This poor ranking is mainly attributed to difficulties faced in terms of innovation, freedom of trade and protecting investors.
Investment in Africa will be a hot topic to follow in 2019.