Ease of Doing Business In Africa : The 2025/26 Index Report

Wilbert Frank Chaniwa
10 hours ago
12 min read

A RIC Brands Africa Agribusiness Intelligence Report

*Published by Africa Brew Brief | RIC Brands Research & Intelligence Division*

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THE STATE OF PLAY

Africa is the world's fastest-growing consumer market — 1.7 billion people, a combined GDP of $10.8 trillion at purchasing power parity, and a single-market framework in the African Continental Free Trade Area (AfCFTA) that promises to reshape the global trade order. Yet business operators on the ground still face a daily reality that is more obstacle course than open market.

The World Bank's inaugural Business Ready (B-READY) 2024 report — the successor to the discontinued Doing Business Index — found that the gap between regulatory frameworks and actual public service delivery is greatest in Sub-Saharan Africa. On a scale of 0 to 100, economies globally scored an average of 65.5 for the quality of their regulatory framework, but just 49.7 for the public services that help businesses comply. That gap was widest across Sub-Saharan Africa and the Middle East and North Africa. [Site Selection](https://siteselection.com/new-world-bank-business-ready-rankings-offer-a-more-transparent-version-of-doing-business/)

The B-READY methodology assesses three pillars — Regulatory Framework, Public Services, and Operational Efficiency — across 10 topics that map the full life cycle of a firm: Business Entry, Business Location, Utility Services, Labor, Financial Services, International Trade, Taxation, Dispute Resolution, Market Competition, and Business Insolvency. [worldbank](https://www.worldbank.org/en/businessready/publications-2024)

This report identifies who is leading, who is lagging, what the core barriers are, and what must change.

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## PART ONE: THE LEADERS — AFRICA'S MOST PROGRESSIVE BUSINESS ENVIRONMENTS

### 🟢 1. Rwanda — Africa's #1

Rwanda has once again affirmed its position as Africa's leading business-friendly economy, according to the World Bank's B-READY 2025 Report, which recognises the country for effectively translating reforms into real-world business efficiency. The report ranks Rwanda as Africa's top-performing economy overall, highlighting its strong regulatory framework, high operational efficiency, and steady progress in public service delivery. [KT PRESS](https://www.ktpress.rw/2026/01/rwanda-tops-africa-in-world-banks-b-ready-2025-business-rankings/)

One of Rwanda's most notable achievements is its performance in Operational Efficiency, where it ranks 12th globally — making it the only Sub-Saharan African economy to reach this level in the B-READY 2025 assessment. Operational efficiency measures how easily businesses comply with regulations and access public services in practice. Rwanda's high ranking reflects streamlined procedures, increased digitalisation of government services, and reduced administrative bottlenecks. [Rwandainzimbabwe](https://www.rwandainzimbabwe.gov.rw/actualites/info-details/rwanda-tops-africa-in-world-banks-b-ready-2025-business-rankings)

**What Rwanda did right:**

Rwanda's legal reforms have enhanced its global competitiveness. Recent legislative efforts, including the 2021 Investment Promotion Law, the Company Law, and the Insolvency Law, created a more business-friendly regulatory environment. Rwanda's commercial courts and streamlined processes for business registration and dispute resolution set benchmarks for the region. Rwanda also remains one of the fastest countries in Africa and globally for company registration — in sharp contrast to global averages of 32 days for domestic firms and 39 days for foreign firms. [Rwandainnigeria](https://www.rwandainnigeria.gov.rw/actualites/info-details/rwanda-among-top-global-performers-in-inaugural-world-bank-b-ready-report-1)

Systems like the Integrated Electronic Case Management System (IECMS) for the judiciary and the e-titles system for land services have streamlined processes, reducing both the time and cost of doing business. Ongoing initiatives include the digitization of the One Stop Center, upgrades to business and mortgage registration systems, and the integration of trade services under a Single Transaction Portal. [Rwandainnigeria](https://www.rwandainnigeria.gov.rw/actualites/info-details/rwanda-among-top-global-performers-in-inaugural-world-bank-b-ready-report-1)

> **Real Example:** Rwanda's RDB (Rwanda Development Board) operates as a one-stop shop where a foreign investor can register a company, obtain a business licence, apply for investment incentives, and get construction permits — all under one roof. This model has been replicated by multiple African nations and studied by the World Bank as a reform benchmark.

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### 🟢 2. Mauritius — The Consistent Performer

Mauritius leads Africa in investor-friendly policies. In operational efficiency, Mauritius follows Rwanda at the top of African rankings, alongside Botswana and Lesotho. For quality public services, Rwanda, Morocco, and Mauritius lead the pack. [African Exponent](https://www.africanexponent.com/top-10-african-countries-with-the-most-favourable-business-environments-in-2025/)

Mauritius benefits from a stable legal system rooted in English common law and French civil law, strong financial regulation, and zero capital gains tax on investments — making it the preferred holding company jurisdiction for pan-African investments. Its position as a gateway to the Indian Ocean and strong bilateral investment treaties reinforce its appeal to global capital.

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### 🟢 3. Morocco — North Africa's Powerhouse

In terms of regulatory frameworks, Togo secured second place in Africa after Rwanda, followed by Morocco, Côte d'Ivoire, and Ghana. For quality public services, Morocco ranked among the top three African performers. [Africa Briefing](https://africabriefing.com/rwanda-leads-africa-in-world-banks-2024-business-ranking/)

Morocco has built competitive advantages in automotive manufacturing, aeronautics, renewable energy, and financial services. The country's free trade zones, particularly around Casablanca and Tangier, attract major multinationals. Morocco's Mohammed VI Polytechnic University and its agri-innovation investments make it a continental reference for knowledge-driven development.

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### 🟢 4. Kenya — East Africa's Commercial Gateway

Kenya has emerged as one of East Africa's leading business hubs, thanks to its growing economy and strategic location. [African Exponent](https://www.africanexponent.com/top-10-african-countries-with-the-most-favourable-business-environments-in-2025/)

Kenya's mobile money ecosystem — anchored by M-Pesa — transformed financial access for smallholder farmers and SMEs alike. Nairobi functions as the regional HQ for over 100 multinational companies. The Nairobi International Financial Centre has attracted global banks, private equity firms, and impact investors targeting East Africa.

> **Real Example:** M-Pesa, launched by Safaricom in Kenya, is now one of the world's most documented financial inclusion case studies. It enabled nearly 80% of Kenya's adult population to access financial services without a traditional bank account — a model now replicated in Tanzania, Ghana, Ethiopia, and Mozambique.

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### 🟢 5. Togo & Côte d'Ivoire — West Africa's Rising Stars

Countries such as Benin and Senegal have climbed in recent years, reflecting deliberate reforms in licensing, digital tax systems, and investor protections — evidence that business-friendly environments are expanding beyond traditional hubs. [Spotlight In Africa](https://www.spotlightinafrica.com/post/rwanda-tops-the-world-bank-s-2025-s-business-environment-ranks-in-africa-s-economies)

Togo launched its Togo Invest one-stop-shop and revised its investment code in 2017, cutting business registration to 24 hours. Côte d'Ivoire has benefited from political stabilisation post-2011 and significant investment in its cocoa, logistics, and services sectors. The Centre de Promotion des Investissements en Côte d'Ivoire (CEPICI) allows company registration in under 24 hours.

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### 🟢 6. Ghana — West Africa's Democratic Anchor

Ghana is steadily strengthening its position as one of West Africa's more investable economies, according to the latest World Bank B-READY evaluation. The country scored as high as 72% in financial services. [mexc](https://www.mexc.com/news/639576)

Ghana's free press, independent judiciary, and record of peaceful democratic transitions give it a governance credibility premium that investors value above pure logistics scores.

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## PART TWO: THE LAGGARDS — AFRICA'S MOST CHALLENGING BUSINESS ENVIRONMENTS

### 🔴 1. Somalia — The Bottom of the Continent

Somalia ranks as the most corrupt country in Africa, driven by ongoing conflict since 1991, weak governance, and Al-Shabaab's control over rural areas. Public funds misappropriation — with 70% of aid reportedly diverted — stifles development. The lack of a centralised government fuels bribery and extortion. [Jaynevy Tours CO LTD](https://www.jaynevytours.com/most-corrupt-country-in-africa.html)

Somalia's World Bank Doing Business ranking (the last before the index was suspended) placed it 190th out of 190 — last globally. There is effectively no formal commercial court system, no land registry, and no reliable electricity grid outside Mogadishu.

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### 🔴 2. South Sudan — Oil Wealth, Governance Poverty

South Sudan's corruption stems from post-independence civil war and oil revenue mismanagement, which accounts for 98% of its budget. Elite capture diverts $2 billion annually, leaving 82% of the population in poverty. Weak judicial systems enable impunity. [Jaynevy Tours CO LTD](https://www.jaynevytours.com/most-corrupt-country-in-africa.html)

> **Real Example:** South Sudan's government has been unable to audit where oil revenues go. In 2023, a UN Panel of Experts report documented systematic diversion of state oil income to political and military elites, leaving critical infrastructure — roads, hospitals, schools — almost entirely donor-funded.

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### 🔴 3. Central African Republic (CAR)

The Central African Republic ranked 184th among 190 economies in ease of doing business in the World Bank's final Doing Business report. Its score has remained consistently near the bottom, averaging 184 from 2008 to 2019. [tradingeconomics](https://tradingeconomics.com/central-african-republic/ease-of-doing-business)

Armed militia groups control large portions of the country's territory, including its gold and diamond mining zones. Foreign investment is effectively impossible outside the capital Bangui, and even there, business operates under near-constant security risk.

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### 🔴 4. Democratic Republic of Congo (DRC)

The DRC struggles with corruption in both public and private sectors, hindering development initiatives. Despite its vast natural resources, corruption remains a significant obstacle to progress. [Businessday NG](https://businessday.ng/news/article/here-are-10-african-countries-with-high-corruption-in-2024/)

The DRC holds some of the world's largest reserves of cobalt, coltan, copper, and lithium — minerals critical to the global energy transition. Yet illegal mining profits fuel ongoing conflict, displacing 5 million people [Jaynevy Tours CO LTD](https://www.jaynevytours.com/most-corrupt-country-in-africa.html) , while businesses face multiple checkpoints demanding unofficial fees on every supply route.

> **Real Example:** A 2024 renegotiation of the $9 billion Sino-Congolaise des Mines project with China exposed the DRC's structural challenge: resource-rich but institutionally unable to capture value for citizens. The government brought in international auditors after expressing dissatisfaction with the terms — a sign of growing awareness but also of how long problematic deals can persist.

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### 🔴 5. Chad

Chad faces severe corruption, which, coupled with security issues worsened by insurgency, cripples its economy and weakens the rule of law, as many individuals engage in corrupt practices with a sense of impunity. [Vanguard News](https://www.vanguardngr.com/2024/07/10-most-corrupt-countries-in-africa-in-2024/)

Chad's health budget loses 30% to graft, leaving one doctor per 30,000 people. [Jaynevy Tours CO LTD](https://www.jaynevytours.com/most-corrupt-country-in-africa.html) Infrastructure is almost entirely underdeveloped outside N'Djamena. Oil revenues, which should fund diversification, have been captured by a narrow elite for decades.

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### 🔴 6. Zimbabwe & Burundi

With a CPI score of 20/100, Zimbabwe has long been marred by allegations of political patronage and state resource extraction. A report in 2023 detailed how gold smuggling cartels with alleged ties to political heavyweights siphon billions from the nation. [African Exponent](https://www.africanexponent.com/top-10-african-countries-with-the-most-corruption-in-2025/)

In Burundi, corruption poses a significant barrier to progress. The nation struggles with systemic corruption issues that impact public services, contributing to economic challenges. [Businessday NG](https://businessday.ng/news/article/here-are-10-african-countries-with-high-corruption-in-2024/)

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## PART THREE: THE SEVEN STRUCTURAL BARRIERS TO DOING BUSINESS IN AFRICA

### 1. Corruption and Governance Failure

Sub-Saharan Africa has registered the lowest average Corruption Perceptions Index score globally, at 33 out of 100 — well below the global average of 43. Climate action faces a significant threat from corruption in the region, including through misappropriation, theft, and misallocation. [Transparency International](https://www.transparency.org/en/press/2024-corruption-perceptions-index-climate-funds-at-risk-of-theft-as-sub-saharan-africa-faces-some-of-the-highest-levels-of-corruption)

Corruption operates at every level — from the customs officer demanding a facilitation fee to the minister redirecting infrastructure contracts. It inflates costs, distorts markets, and drives away the long-term capital that Africa most needs. Corruption costs Africa 25% of its GDP annually. [Jaynevy Tours CO LTD](https://www.jaynevytours.com/most-corrupt-country-in-africa.html)

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### 2. Infrastructure Deficit

The infrastructure financing gap — defined as the difference between required capital investment and actual expenditure — is estimated to range between $68 billion and $108 billion annually. [MOHAC AFRICA](https://mohacafrica.org/infrastructure-gap-in-africa/)

As of 2024, about 58% of Africa's population had electricity. Only Egypt, Mauritius, Seychelles, Morocco, Algeria, and Tunisia have achieved universal access; about 600 million people remain without electricity. [ISS African Futures](https://futures.issafrica.org/thematic/11-large-infrastructure/)

High dwell times — the time cargo sits in port — can reach 15 to 20 days in some African ports, compared to 3 to 4 days in Asia. [MOHAC AFRICA](https://mohacafrica.org/infrastructure-gap-in-africa/)

> **Real Example:** Nigeria's commercial capital Lagos loses an estimated $1 billion per year in productivity due to fuel-powered generators running as an alternative to unreliable grid electricity. Every factory, hotel, hospital, and shop runs on diesel — a cost that no competitor in Asia or Europe carries.

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### 3. Regulatory Fragmentation and Non-Tariff Barriers

Administrative delays, complex customs procedures, and regulatory inconsistencies continue to restrict trade flows between African countries. Reducing non-tariff barriers remains one of the most critical priorities for AfCFTA implementation. [ITRC](https://it-rc.org/2026/03/05/african-continental-free-trade-area-2024-2025-implementation-report/)

African countries often have lower tariffs with Europe than with each other. A textile manufacturer in Ethiopia may face lower barriers exporting to Germany than to Nigeria — a structural absurdity that AfCFTA is designed to correct but has not yet eliminated.

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### 4. Limited Access to Finance

A persistent trade finance gap estimated at about $100 billion limits SME participation in regional trade. Many African businesses — particularly small and medium-sized enterprises — are still unaware of AfCFTA opportunities or face difficulties accessing finance and information. [ITRC](https://it-rc.org/2026/03/05/african-continental-free-trade-area-2024-2025-implementation-report/)

Interest rates across Sub-Saharan Africa average between 15% and 30% per annum for commercial lending. Collateral requirements typically demand 200–300% of loan value. Most smallholder farmers and food processors are structurally excluded from formal credit — even when they have verified orders and market access.

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### 5. Intra-African Trade Volumes Remain Too Low

Intra-African trade remains anchored at approximately 15 to 18 percent of total continental commerce, significantly below the 50% target envisioned by AfCFTA architects. [News Ghana](https://www.newsghana.com.gh/infrastructure-africa-2026-opens-with-afcfta-integration-focus/)

Compare this to intra-European trade at approximately 65% and intra-Asian trade at 55%. Africa sells more to Europe, Asia, and North America than to itself — meaning value addition, processing, and the economic multiplier from trade largely happens outside the continent.

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### 6. Digital Infrastructure Gaps

In 2024, Africa recorded only about 3.7 fixed broadband subscriptions per 100 people, compared with 80.6 for mobile broadband. Nearly half of Africa's population lives more than 10 kilometres from a fibre connection, creating a major barrier to the expansion of fixed broadband. [ISS African Futures](https://futures.issafrica.org/thematic/11-large-infrastructure/)

E-commerce, digital trade, fintech, and remote services are among the highest-growth opportunities available to African economies. But without reliable internet connectivity — particularly outside capital cities — these opportunities remain inaccessible to the majority of African entrepreneurs.

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### 7. Political Instability and Conflict Risk

Fourteen African countries experienced military coups, armed conflict, or significant civil unrest between 2020 and 2025. Conflict destroys physical infrastructure, collapses currency values, disrupts supply chains, and triggers the departure of skilled professionals and capital simultaneously. No business environment policy framework can function in an active conflict zone.

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## PART FOUR: WHAT MUST BE DONE — THE REFORM AGENDA

### Fix 1: Digitise Government Services

Rwanda's model is replicable. A single national business registration portal, connected to tax authorities, immigration, and land registries, eliminates the discretion that enables bribery and cuts compliance time from weeks to hours. B-READY's new methodology specifically assesses digital government services — single windows and information portals — as a core driver of business climate quality. [Unctad](https://worldinvestmentforum.unctad.org/session/b-ready-understanding-world-banks-new-business-readiness-assessment)

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### Fix 2: Close the Infrastructure Finance Gap

Research indicates every $1 billion invested in African infrastructure unlocks up to $6 billion in GDP value. [News Ghana](https://www.newsghana.com.gh/infrastructure-africa-2026-opens-with-afcfta-integration-focus/) Public-private partnerships, development finance institutions, sovereign wealth funds, and diaspora bond instruments must be mobilised at scale. The Lobito Corridor — connecting DRC and Zambia to the Atlantic via Angola and backed by US and EU finance — is the model for how geopolitical competition can be channelled into continental infrastructure.

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### Fix 3: Implement AfCFTA — Genuinely

A World Bank study projected that full AfCFTA implementation could lift incomes across Africa by 7%, lift over 30 million people out of extreme poverty, and increase foreign direct investment by 159% if countries expand the agreement to harmonise policies on investment, competition, e-commerce, and intellectual property rights. [brookings](https://www.brookings.edu/articles/reaping-the-benefits-of-the-afcfta-strengthening-transport-services-and-infrastructure-for-growth/)

This requires governments to stop treating AfCFTA as a diplomatic achievement and start treating it as an operational mandate — with border agencies, customs authorities, and standards bodies actively aligned.

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### Fix 4: Establish Independent Commercial Courts

The speed and predictability of commercial dispute resolution is a decisive factor in investment location decisions. Rwanda's commercial courts resolve disputes in under 90 days on average. The continental average exceeds 600 days. Independent, professionally staffed commercial courts with digitised case management must be a non-negotiable standard across Africa's major trading economies.

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### Fix 5: Reform Land Tenure Systems

Across most of Sub-Saharan Africa, the majority of land is held under customary tenure — unregistered, untitled, and therefore unusable as collateral. Without bankable land assets, businesses cannot access credit, cannot attract secured investment, and cannot scale. National land titling programmes, like Ethiopia's low-cost photo registration or Rwanda's systematic land registration, demonstrate that this is achievable at scale and speed.

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### Fix 6: Back African SMEs with Concessional Finance

The $100 billion trade finance gap is a solvable problem. African Development Bank instruments, national development finance institutions, blended finance vehicles, and AGOA/EBA preferences must be connected to actual SME operators — not just large corporates. Digital credit scoring using mobile money transaction data (pioneered in Kenya) offers a scalable alternative to traditional collateral-based lending.

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### Fix 7: Enforce Anti-Corruption Laws — Not Just Pass Them

Nigeria's EFCC (Economic and Financial Crimes Commission) recovered $750 million in 2024. [Jaynevy Tours CO LTD](https://www.jaynevytours.com/most-corrupt-country-in-africa.html) That is a start — but enforcement must be consistent and must reach political elites, not only low-level officials. Whistleblower protection legislation, independent audit institutions, and open contracting standards for public procurement are the operational pillars of credible anti-corruption.

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## PART FIVE: THE SCORECARD AT A GLANCE

|---|---|---|---|

| DRC | ⭐ | Mineral wealth | Corruption, instability |

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## CONCLUSION: THE REAL OPPORTUNITY

Africa's business environment story is not a single narrative. It is 54 narratives — some of which are among the most compelling reform stories anywhere in the world. Rwanda's transformation from post-genocide reconstruction to the continent's leading business hub in under three decades is a human and institutional achievement without parallel.

The continent's structural challenges — corruption, infrastructure deficits, fragmented markets, and thin capital markets — are real. But they are not permanent. Every single barrier identified in this report has been reduced or eliminated somewhere on the continent. The challenge is replication at scale, and the tool for that replication is political will backed by institutional design.

For investors, agribusinesses, trade operators, and development practitioners: the countries getting this right are not waiting. Rwanda, Mauritius, Morocco, Kenya, and a rising tier of reformers are actively competing for your capital, your supply chains, and your partnerships.

The question is not whether Africa is open for business. The question is which Africa are you engaging — and when.

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*This report was produced by the Africa Brew Brief Research & Intelligence Division, a unit of RIC Brands. RIC Brands works at the intersection of Africa agribusiness, trade, and hospitality — connecting markets, activating supply chains, and building sovereign food and trade ecosystems across the continent.*

#AfricaBusiness #EaseOfDoingBusiness #AfCFTA #AfricaAgribusiness #RICBrands #AfricaBrewBrief #BrandAfrica #AfricaTrade #AfricaInvestment #BusinessReadyAfrica*

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Ease of Doing Business In Africa : The 2025/26 Index Report

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