The World Bank Group has come up with a list of the worst countries in Sub-Saharan Africa to do business in.
In the Doing Business 2018 report, produced by the World Bank, rankings were based on property registration, ability to get credit, taxes, electricity, other business regulations and if the countries followed the 83 reforms, that were implemented in 2017.
Based on these rankings, Somalia came in last on the global list at number 190, while Africa’s largest economy, Nigeria, was ranked 145th.
Here are the five worst African countries to do business in, according to the World Bank:
Somalia
As mentioned earlier, the East African country has been ranked as one of the worst places to do business in. Political instability, economic collapse, and terrorism threats by militant group al-Shabaab make this country really far from attaining the global best practices in business regulation.
Somalia has been ranked as the worst place to do business in Africa
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Eritrea
A low score of 189 makes this country a terrible place to consider doing business in. This is due to the high poverty rate, infrastructure challenges, lack of internet penetration and the excessive bureaucracy by the government.
South Sudan
Third on the list is this East-Central African country with a global ranking of 187. This is as a result of the constant conflict between the government and rebel forces after years of war.
South Sudan ranks 187 globally in the Doing Business report, making it one of the worst places to business in Africa
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The Central African Republic
This country’s global ranking is 184 thanks to unfavourable business policies, poor transportation systems and unskilled labour force.
The Democratic Republic of Congo
Congo was ranked 182 on the list. This low score reflects an inefficient business environment.
This is the ease of doing business in Africa report by the World Bank Group
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It isn’t all bad news for Africa in spite of the low rankings above. Mauritius, an East African country scored 25, making it the highest ranked economy and the best place to do business in Sub-Saharan Africa.
Other good economies include Rwanda (at 41), Kenya (80), Botswana (81) and South Africa(82).
World Bank, Pulse.ng. Map: FreeWorldMaps