For the 11th straight year, Forbes has gauged the world’s economies to measure which are the most inviting for capital investment. This year Forbes graded 139 countries on 11 factors:
- Property rights
- Freedom (personal, trade and monetary)
- Red tape
- Investor protection
- Stock market performance.
The data is based on published reports from Freedom House, Heritage Foundation, Property Rights Alliance, Transparency International, World Bank Group and World Economic Forum.
Based on Forbes‘ list, YourBotswana has compiled Africa’s top 5 countries for business in 2017.
Top 5 Best Countries For Business in Africa based on the Forbes list
The Southern African country ranked 68th overall. Fueled by diamond mining, Botswana has maintained one of the world’s highest economic growth rates since 1996. A downturn in the global diamond market, as well as water and power shortages, have seen Botswana’s growth dip slightly but with rankings such as 28th in Corruption and 44th in Property Rights, Botswana is Africa’s 5th best country for business.
Also in Southern Africa, Namibia is ranked 63rd on the overall list. Namibia is the world’s 5th largest producer of Uranium and has an economy that is heavily dependent on the extraction and processing of natural mineral resources for export. Namibia being ranked 5th in Market Performance and 55th in Trade Freedom sees it ranked 4th on this list.
Africa’s most Northern country, Morocco, is 51st on the overall list. It has taken advantage of its proximity to Europe and reasonably low labour costs to build a diverse, open market economy. Despite Morocco’s economic progress, the country suffers from high levels of unemployment, poverty, and illiteracy, particularly in rural areas. With their rankings of 17th in Market Performance and 21st in Monetary Freedom, Morocco is Africa’s 3rd best country for business.
2. South Africa
At the Southern tip of Africa, South Africa is ranked 48th in the overall list. South Africa is a middle-income emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors; and a stock exchange that is Africa’s largest and among the top 20 in the world. Unemployment, poverty and inequalities in South Africa are among the highest in the world. However, with its ratings in Investor Protection 22nd, and Property Rights 30th; South Africa is the 2nd best country for business in Africa.
This Island off the coast of East Africa is ranked 39th in the overall list. Over the years, Mauritius has transformed from a low-income agriculture-based economy into a diversified upper middle-income economy. Its growing financial, industrial and tourism sectors along with sound economic policies and prudent banking practices back up Mauritius’ ranking. Highly ranked in Trade Freedom at 4th, and Property Rights at 34th, Mauritius is the best country for business in Africa.
And the overall Winner out of 139 countries
Sweden is Number 1 Overall Best Country For Business
And Here’s Why
Sweden moves up four spots to the top of the charts for the first time (Sweden ranked No. 17 in 2006). Over the past two decades, the country has undergone a transformation built on deregulation and budget self-restraint with cuts to Sweden’s welfare state.
The Swedish government shrank jobless and disability benefits to encourage employment. The lower benefits allowed for tax cuts. The inheritance tax was scrapped in 2005 and the wealth tax was canned two years later. A new bill lowered the energy tax on data centers by 97% effective Jan. 1.
Sweden is home to some of the most venerable, well-known brands in the world
- Retail giant IKEA founded in Sweden in 1943 by then 17-year-old Ingvar Kamprad.
Sweden has also become a haven for tech startups
Skype was co-founded by Swede Niklas Zennstrom in 2003
eBay acquired the video chat application for $2.6 billion in 2005. Microsoft paid $8.5 billion six years later.
A decade ago, Swedish duo Daniel Ek and martin Lorentzon founded music streaming service Spotify. The company has 40 million paid users (twice the number of Apple Music).
Sweden is the home to a pair of companies that created two of the biggest games of this decade. King Digital Entertainment started in 2003 and nine years later launched the addictive Candy Crush Saga mobile game, which was downloaded more than 500 million times.