These Are the Top 10 African Countries to Do Business in 2023

If you’re considering doing business in Africa but don’t know which place may suit you, you’ve come to the right place. This article will look at the best African economies worth investing in.

Here are the ten African countries to explore for your business.

Mauritius

Investors often overlook Mauritius due to its small market size; however, this island received the highest score in ease of doing business in 2020 among all African countries.

Furthermore, the country’s GDP has been steadily growing, reaching $11 billion in 2021, and is expected to grow to $16.83 billion in 2026.

Initially dependent on agriculture, the economy of Mauritius is developing towards diversification which is mainly causing its economic growth. This includes manufacturing, financial services, tourism, renewable energies, and ICT.

In addition, Mauritius has a stable political system, a liberal financial sector, and low taxes.

Rwanda 

According to the UN, Rwanda came second in ease of doing business in 2020 among all African countries and is one of the six fastest-growing regions in Africa. Since the Rwandan genocide in the early 2000s, Rwanda has been on an economic rise, with a $10.4 billion GDP in 2021.

Rwanda’s economy depends on coffee, tea, minerals, tourism, and other exports, and the government has introduced numerous business reforms.

Rwanda also brought an electronic system to replace the old bureaucratic designs. It recently introduced a unique billing machine system that allows taxpayers to issue value-added taxation invoices from any printer via free software.

Egypt 

Egypt has a mixed economy, and the country profits from fossil fuels, agriculture, and tourism. In 2021, the GDP of Egypt was $396.33 billion making it the second wealthiest country in Africa.

Furthermore, since 2000, many structural reforms have been introduced, including fiscal, monetary policies, privatization, taxation, and new business legislation, which shifted the country towards a more market-oriented economy. This is also what led to an increase in foreign investment.

Kenya

With a GDP of $109.49 billion in 2021 and an expected growth of 6.05% in 2023, Kenya may be the next best destination for setting up your business.

Kenya is the fourth country in the ease of doing business in Africa. It tops the number of foreign direct investments (FDI) in East Africa; $3.86 billion FDI projects recorded in 2019, an all-time high, contributed to 4% of Kenya’s GDP.

Major Kenyan industries include agriculture, forestry, fishing, mining, manufacturing, energy, tourism, and financial services.

Ghana 

Ghana’s economy has been dependent on its oil production since 2010. However, the government has been diversifying its economy, focusing on the private sector.

As a result, Ghana’s GDP has risen since 2016, reaching its highest of $72 billion in 2020.

If you’re looking to invest in the tech sector, then Ghana may be the place for you; Google’s first African AI lab opened in 2019, and Twitter plans to set up its African headquarters here as well, establishing Ghana as the region’s IT hub.

Morocco 

According to Forbes, Morocco fell third in line in ease of doing business in African countries and had the fifth most robust economy in 2021 in Africa with a GDP of $124 billion.

The main sectors of Morocco’s economy include agriculture, tourism, aerospace, automotive, phosphates, textiles, and apparel.

The country has been doing well on the FDI front as well; 111 FDI projects in 2019, an increase of 56% in 2018.

Ivory Coast

Ivory Coast is also one of the fastest-growing countries in Africa, with a GDP of $68.85 billion in 2021.

This country is the world’s largest exporter of cocoa beans, and over the last few years, the government has introduced policies to support transparency and attract businesses.

According to the African Development Bank report, the country’s GDP is expected to grow by 6.5% in 2023, with agriculture, construction, petroleum products, transport and trade, and investment being the primary growth factors.

Tanzania

2020 was a big year for Tanzania; its GDP was $62.4 billion, and it reached lower-middle-income status. The future is also bright for this country; the African Development Bank predicts Tanzania’s GDP will grow by 6.3% in 2023.

The significant contributors to the Tanzanian economy are tourism, mining, construction, agriculture, and manufacturing.

South Africa 

South Africa is one of the most developed countries in Africa, with excellent infrastructures and efficient financial, legal, energy, telecommunication, and transport systems. In addition, South Africa is rich in natural resources.

Its GDP in 2021 was a whopping $415.32 billion. Business and government services, real estate, finance, communication, transport, and more support the economy.

Moreover, the country has the most significant number of FDIs in Southern Africa, valued at $4.1 billion. The president of South Africa aims to attract $100 billion in new investments into the country by 2023.

If you’re considering expanding your business or operations to South Africa, you should also consider obtaining Afrikaans translation services from an expert agency.

Botswana 

What mainly makes Botswana stand out is that it’s been rated the least corrupt country in Africa. In addition, it was removed from the Financial Action Task Force’s (FATF) ‘grey list’ after improving the handling of money-laundering cases.

The GDP of Botswana was $17.61 billion in 2021, and although the country is rich in diamonds and other minerals, it has diversified its economy by developing the manufacturing sector.

In addition, the country aims to become a net exporter of electricity by 2027 by utilizing its energy resources.

African Language Translation 

If we’ve convinced you to start your business in any of these African countries, then great! However, before you do, you should enquire about translation services for the African market.

Of course, you would want your product to sell successfully in your chosen African country, but you may not fully grow if you don’t market in the spoken language of your consumer.

The Common Sense Advisory states that 72.4% of all consumers will more willingly buy a product if marketed in their language.

Many languages are spoken in Africa, and most countries speak more than one language. So even if English is one of the official languages, partnering with a professional translation agency will be valuable.

For example, although English is an official language in South Africa, only 8.2% speak it as their mother tongue.

Therefore, finding the right African translation service is as important as looking at other factors when setting up your business in Africa.