Business climate improves in many African countries but access to electricity remains a challenge
Workers in Rwanda head to the Sorwathe Tea Plantation and processing facility, a longstanding OPIC client that was established in 1978 and rebuilt almost two decades later with the support of OPIC political risk insurance. In recent years, Rwanda has risen rapidly in the Doing Business rankings.
Doing business in Africa is not always easy, but the business climate is improving in many African countries, the World Bank’s latest Doing Business report shows.
The latest version of the Bank’s widely-watched report shows that many countries in Sub-Saharan Africa have adopted reforms related to starting a business, protecting investors, paying taxes and registering property. Five of 10 countries listed for a “most improved” business climate – Benin, Togo, Cote d’Ivoire, Senegal and Democratic Republic of Congo – were in Sub-Saharan Africa.
While showing significant improvement in many of the factors that are needed to attract private investment, the report also serves to underscore some of the persistent challenges to doing business on the continent. Among those African countries that made the most-improved list, only one, the Democratic Republic of Congo, was recognized for adopting reforms related specifically to accessing electricity, a key challenge throughout the continent that severely limits business activity.
The report ranks the business climate in 189 developed and developing countries around the world. This year, four African countries ranked in the top 100, including South Africa, 43; Rwanda, 46; Ghana, 70 and Botswana, 74.