The strength of a country’s business environment is the primary driver of long-term economic progress, according to a new report assessing over 125 nations. The index focuses on conditions relevant to entrepreneurs, including regulation, access to capital, taxation, digital infrastructure, and global mobility.
How the Index Works
The IBEI is structured around three core pillars: Ease of Operating a Business, Business Incentives, and Market Perception. These are further grouped into five functional categories: Regulation & Governance, Access to Capital & Financial Infrastructure, Taxation, Digital Infrastructure, and Global Mobility & Openness.
- Ease of Operating a Business
- Business Incentives
- Market Perception
Africa’s Top Performers
In Africa, South Africa ranks 61st globally, making it the continent’s highest-rated business environment. Kenya (68th) and Cape Verde (70th) follow closely behind. While no African economies are in the global top 50, their rankings demonstrate progress in creating more predictable regulatory systems, improved access to capital, and stronger international connectivity.
The report argues that innovation ecosystems thrive not because of short-term funding injections, but because of systemic policy foundations, transparent regulation, efficient governance, sensible tax regimes and functional digital infrastructure.
Global Leaders Set the Benchmark
Globally, the United States ranks first, followed by Singapore and the United Kingdom. The Gulf region stands out for taxation competitiveness, with the United Arab Emirates ranked fifth overall and leading globally on favorable tax conditions. Saudi Arabia ranks first worldwide for friction-reducing policy levers.
Why it Matters for Africa
As countries compete for capital and global talent, the index makes clear that long-term competitiveness depends less on micro-interventions and more on systemic reforms. For African governments, the message is straightforward: reducing regulatory friction, improving financial infrastructure and strengthening governance credibility will do more to unlock innovation than isolated funding schemes.
For South Africa, Kenya and Cape Verde, the rankings signal progress — but also reveals the distance still to travel in positioning Africa as a globally competitive destination for founders and investors.
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