The 10 best countries to start a business in Africa

By Peter Guest, for CNN

Updated 1044 GMT (1844 HKT) January 28, 2016

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Swaziland's small size and a widespread perception that it is a difficult place to operate make it a surprising inclusion in Africa's top-10 for doing business. However, the country's close economic integration with its neighbors means that it scores disproportionately highly on the World Bank's 'Trading Across Borders' metric -- at 30th in the world. For start-ups, the cost of registering a business and in particularly getting connected to the electricity grid could be prohibitively high.<br /><br /><strong>Doing Business World Rank: 105</strong><br /><strong>Days to start a business: 30</strong><br /><strong>Days to get electricity: 137</strong><br /><strong>Days to register property: 21</strong>

Photos: The Top 10 countries to start a business in Africa

10. Swaziland – Swaziland's small size and a widespread perception that it is a difficult place to operate make it a surprising inclusion in Africa's top-10 for doing business. However, the country's close economic integration with its neighbors means that it scores disproportionately highly on the World Bank's 'Trading Across Borders' metric -- at 30th in the world. For start-ups, the cost of registering a business and in particularly getting connected to the electricity grid could be prohibitively high.

Doing Business World Rank: 105
Days to start a business: 30
Days to get electricity: 137
Days to register property: 21

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Namibia rarely features on investors' radars due to its comparatively small economy and close integration with South Africa, its much-larger neighbor. However, the country still offers opportunities for entrepreneurs due to the relative ease with which start-ups can access credit and power. However, some of the bureaucratic barriers -- such as the time-consuming process to register a business or property -- remain high.<br /><br /><strong>Doing Business World Rank: 101</strong><br /><strong>Days to start a business: 66</strong><br /><strong>Days to get electricity: 37</strong><br /><strong>Days to register property: 52</strong>

Photos: The Top 10 countries to start a business in Africa

9. Namibia – Namibia rarely features on investors' radars due to its comparatively small economy and close integration with South Africa, its much-larger neighbor. However, the country still offers opportunities for entrepreneurs due to the relative ease with which start-ups can access credit and power. However, some of the bureaucratic barriers -- such as the time-consuming process to register a business or property -- remain high.

Doing Business World Rank: 101
Days to start a business: 66
Days to get electricity: 37
Days to register property: 52

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With an ongoing economic crisis and a slumping currency, Zambians were urged to look to the heavens for respite in October, after the president called for a day of prayer and reflection to halt the slide. The country faces many challenges -- particularly a lack of power that has caused blackouts in the capital, Lusaka, for the first time in years. However, there are still some positives for Zambian entrepreneurs. The country is still a competitive environment for start-ups -- scoring higher on the 'Starting a Business' section of the World Bank's Doing Business ranking than South Africa, and in the global top-20 for getting credit.<br /><br /><strong>Doing Business World Rank: 97</strong><br /><strong>Days to start a business: 7.5</strong><br /><strong>Days to get electricity: 117</strong><br /><strong>Days to register property: 45</strong>

Photos: The Top 10 countries to start a business in Africa

8. Zambia – With an ongoing economic crisis and a slumping currency, Zambians were urged to look to the heavens for respite in October, after the president called for a day of prayer and reflection to halt the slide. The country faces many challenges -- particularly a lack of power that has caused blackouts in the capital, Lusaka, for the first time in years. However, there are still some positives for Zambian entrepreneurs. The country is still a competitive environment for start-ups -- scoring higher on the 'Starting a Business' section of the World Bank's Doing Business ranking than South Africa, and in the global top-20 for getting credit.

Doing Business World Rank: 97
Days to start a business: 7.5
Days to get electricity: 117
Days to register property: 45

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Another small Indian Ocean island nation, the Seychelles has taken a similar approach to Mauritius and attempted to set itself up as a hub for investment and administration to complement its tourism business. The country has attracted an unfortunate reputation as a tax haven, and has prioritised the need to trade across borders and resolve disputes.<br /><br /><strong>Doing Business World Rank: 95</strong><br /><strong>Days to start a business: 32</strong><br /><strong>Days to get electricity: 137</strong><br /><strong>Days to register property: 33</strong>

Photos: The Top 10 countries to start a business in Africa

7. Seychelles – Another small Indian Ocean island nation, the Seychelles has taken a similar approach to Mauritius and attempted to set itself up as a hub for investment and administration to complement its tourism business. The country has attracted an unfortunate reputation as a tax haven, and has prioritised the need to trade across borders and resolve disputes.

Doing Business World Rank: 95
Days to start a business: 32
Days to get electricity: 137
Days to register property: 33

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Although Morocco did not experience the same political upheaval as other North African economies during the 'Arab Spring' revolutions in 2010-12, the country felt many of the same social pressures of unemployment and economic inequality. The government has responded with reforms to the business environment, aimed at making it easier to start and grow enterprises. <br /><br /><strong>Doing Business World Rank: 75</strong><br /><strong>Days to start a business: 10</strong><br /><strong>Days to get electricity: 57</strong><br /><strong>Days to register property: 30</strong>

Photos: The Top 10 countries to start a business in Africa

6. Morocco – Although Morocco did not experience the same political upheaval as other North African economies during the 'Arab Spring' revolutions in 2010-12, the country felt many of the same social pressures of unemployment and economic inequality. The government has responded with reforms to the business environment, aimed at making it easier to start and grow enterprises.

Doing Business World Rank: 75
Days to start a business: 10
Days to get electricity: 57
Days to register property: 30

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Before the turmoil of the 'Arab Spring', Tunisia had been building a modern economy, working to attract high technology manufacturing and outsourcing from Europe. The country's revolution, which unseated the autocratic regime of Zine el-Abidine Ben Ali in 2011, led to a brief upheaval in the economy. Now the dust has settled, the young, highly-educated population that took to the streets to demand change is once again the country's greatest economic resource.<br /><br /><strong>Doing Business World Rank: 74</strong><br /><strong>Days to start a business: 11</strong><br /><strong>Days to get electricity: 65</strong><br /><strong>Days to register property: 39</strong>

Photos: The Top 10 countries to start a business in Africa

5. Tunisia – Before the turmoil of the 'Arab Spring', Tunisia had been building a modern economy, working to attract high technology manufacturing and outsourcing from Europe. The country's revolution, which unseated the autocratic regime of Zine el-Abidine Ben Ali in 2011, led to a brief upheaval in the economy. Now the dust has settled, the young, highly-educated population that took to the streets to demand change is once again the country's greatest economic resource.

Doing Business World Rank: 74
Days to start a business: 11
Days to get electricity: 65
Days to register property: 39

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Now eclipsed by Nigeria as the largest economy on the continent, South Africa is still home to the most sophisticated financial sector, which in turn feeds into a dynamic start-up scene -- alongside the big banks and the mining companies -- which still dominate the corporate world. However, despite its overall sophistication, start-ups face a number of challenges -- not least the well-publicised issues with power. <br /><br /><strong>Doing Business World Rank: 73</strong><br /><strong>Days to start a business: 46</strong><br /><strong>Days to get electricity: 226</strong><br /><strong>Days to register property: 23</strong>

Photos: The Top 10 countries to start a business in Africa

4. South Africa – Now eclipsed by Nigeria as the largest economy on the continent, South Africa is still home to the most sophisticated financial sector, which in turn feeds into a dynamic start-up scene -- alongside the big banks and the mining companies -- which still dominate the corporate world. However, despite its overall sophistication, start-ups face a number of challenges -- not least the well-publicised issues with power.

Doing Business World Rank: 73
Days to start a business: 46
Days to get electricity: 226
Days to register property: 23

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According to the global anti-graft watchdog Transparency International, Botswana is the least corrupt country in Africa -- an important factor for entrepreneurs and their investors, who need to be able to rely on their national institutions. The country, which has relied heavily on revenues from the diamond trade to fuel its growth over the last half-century, has also tried to make sure that the legacy of its mining industry will be a more competitive business environment.<br /><br /><strong>Doing Business World Rank: 72</strong><br /><strong>Days to start a business: 48</strong><br /><strong>Days to get electricity: 77</strong><br /><strong>Days to register property: 12</strong>

Photos: The Top 10 countries to start a business in Africa

3. Botswana – According to the global anti-graft watchdog Transparency International, Botswana is the least corrupt country in Africa -- an important factor for entrepreneurs and their investors, who need to be able to rely on their national institutions. The country, which has relied heavily on revenues from the diamond trade to fuel its growth over the last half-century, has also tried to make sure that the legacy of its mining industry will be a more competitive business environment.

Doing Business World Rank: 72
Days to start a business: 48
Days to get electricity: 77
Days to register property: 12

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Small and landlocked Rwanda has become an unlikely -- but compelling -- economic success story due to its relentless drive to break down the barriers for entrepreneurs. Over years of reform, the country has dramatically lowered the number of steps it takes to open a business and made it far easier to get credit.<br /><br /><strong>Doing Business World Rank: 62</strong><br /><strong>Days to start a business: 5.5</strong><br /><strong>Days to get electricity: 34</strong><br /><strong>Days to register property: 32</strong>

Photos: The Top 10 countries to start a business in Africa

2. Rwanda – Small and landlocked Rwanda has become an unlikely -- but compelling -- economic success story due to its relentless drive to break down the barriers for entrepreneurs. Over years of reform, the country has dramatically lowered the number of steps it takes to open a business and made it far easier to get credit.

Doing Business World Rank: 62
Days to start a business: 5.5
Days to get electricity: 34
Days to register property: 32

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Positioned in the Indian Ocean with strong cultural and commercial links to India, China and the east coast of Africa, Mauritius has used its geographical location and legacy as a trading waystation to become an investment hub. The country routinely tops African rankings for competitiveness and ease of doing business due to its liberal approach to regulation and taxation.<br /><br /><strong>Doing Business World Rank: 32</strong><br /><strong>Days to start a business: 6</strong><br /><strong>Days to get electricity: 81</strong><br /><strong>Days to register property: 14</strong>

Photos: The Top 10 countries to start a business in Africa

1. Mauritius – Positioned in the Indian Ocean with strong cultural and commercial links to India, China and the east coast of Africa, Mauritius has used its geographical location and legacy as a trading waystation to become an investment hub. The country routinely tops African rankings for competitiveness and ease of doing business due to its liberal approach to regulation and taxation.

Doing Business World Rank: 32
Days to start a business: 6
Days to get electricity: 81
Days to register property: 14

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Top 10 African economies -- South Africa

Story highlights

Out of the top-10 top pro-business countries globally, five are African
Access to energy and registering property remain challenging for entrepreneurs

(CNN)For all of the opportunities present in Africa's huge and young population, growing economies and expanding trade links, the continent can be a daunting place to set up and run a company. Often, it is also expensive to start out. Bank loans come with double-digit interest rates, the electricity grid is sub-par, and diesel generators cost a fortune.

For the last few years, however, things have been getting better, according to the World Bank.

Every year, the Bank releases the global 'Doing Business' ranking of countries' business environment, rating them based on how easy it is to start a company, raise finance, get connected to the power grid and other key indicators for entrepreneurs. Although few African countries are globally competitive, several have been striving to lower the regulatory barriers for entrepreneurs.

"What we do see is that there's a lot of reform happening in Africa," says Rita Ramalho, manager of the Doing Business project.

"We definitely do see that there is more awareness for these issues. I think before Doing Business started 13 years ago there were very few high-level politicians who would know how many days it took to start a business in their country, now they do know how many days it takes. Definitely it does bring that reality to them, so they connect better to what obstacles the average entrepreneur faces in their country."

The World Bank publishes a parallel ranking of the countries that have pushed through the most business-friendly reforms. Of the top-10, five African countries -- Kenya, Mauritania, Senegal, Benin and Uganda, are on the list.

Access to energy -- a perennial problem across Africa -- is one of the main concerns for entrepreneurs, but not the only one. The ease and reliability of registering property is also a real challenge, particularly where land registries are paper-based. Being able to get the title deeds to property reduces entrepreneurs' risks and gives them the collateral that most banks demand before lending to small businesses.

The 'Doing Business' ranking is not a reflection of the actual economic opportunity in the countries listed. Nigeria, the continent's largest economy, does not make the top-10 in Africa, languishing at 169 out of 189 in the world, below such frontier markets as Guinea, Myanmar and Iraq. Kenya, East Africa's largest economy, would be 11th on the list.

With economic growth in Africa now slowing, in the face of falling prices for oil and minerals, there is more impetus for reforms that help entrepreneurs, Ramalho says.

"A lot of these reforms are not very costly, and oftentimes they may imply savings in the long run."

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