In Forbes‘ 10th annual ranking of the 144 best and worst countries for business, six African countries were right at the bottom, while the top of the list was dominated by European countries.
In conducting its ranking, the magazine used 11 different methods of measurement, including property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape, investor protection and stock performance. For the sixth time, Denmark led the pack.
Many of the European countries scored well across the board, especially on trade, personal freedom, innovation and corruption. Here’s the list of the top 10 countries for doing business:
2. New Zealand
Over the past 15 years, Africa’s economy has been one of the strongest in the world, mostly because of the continent’s rich store of commodities, but 60% of the worst countries for doing business were in Africa.
A big reason for this is the drop in commodity prices and the Chinese economic slowdown, both of which have taken a huge toll on the African economy. According to Forbes, African countries are riddled with high levels of corruption, red tape, tax issues and poor showings for personal and monetary freedoms.
In this year’s list, Chad was ranked right at the bottom. The country is dependent on oil for over 50%of its exports and falling energy prices have hurt the economy.
Here’s the list of the 10 worst countries for doing business:
SA was ranked at number 47 on this year’s list. The economic hub of Africa is abundant with natural resources and well developed financial, legal, communication, energy and transport sectors, but, according to Forbes, the unstable electricity supply has hindered growth.
In recent years, SA’s economic growth has taken a nosedive, slowing to just 1,5% in 2014. Major contributors have been the highest levels of unemployment, poverty and inequality in the world.
Some of the more pertinent pressures that the South African government is faced with are the improvement of basic service delivery to low-income urban areas and stagnating job growth.
The USA, the world’s largest economy, was ranked at 22.