Africa offers a wide range of opportunities for businesses looking to expand thanks to its diverse landscapes, cultures, and economies. However, it is a continent with its own set of dangers and difficulties.
Even though many African nations are experiencing economic growth and are now desirable places to invest, there are still numerous obstacles for corporations to overcome.
The aforementioned argument is highlighted in “The Africa Risk-Reward Index,” a study published in 2023 by Oxford Economics Africa, an independent economic advisory business.
The research looks at security interventions led by African nations, the benefits and drawbacks of polarization in each African nation, and how African nations are funding the future.
In order to determine which nations are most conducive to the establishment of foreign enterprises, research can access these three elements.
Methodology
The Economic and Political Risk Evaluator (EPRE), a joint subscription platform of Control Risks and Oxford Economics Africa, is where the risk scores for each nation come from.
An assortment of political and economic risk variables are rated by Control Risks and Oxford Economics specialists on a scale of 1 to 10, with 10 denoting the greatest degree of danger.
A default weight is given to each political and economic rating based on its importance in the context of the country and its possible influence on business.
The separate political and economic risk factors are then added together, multiplying the rating by weighting, to get the country’s overall risk rating.
In light of this, the top 10 riskiest African nations for business in 2023 are listed below.
| Rank | Country | Risk index |
|---|---|---|
| 1. | Nigeria | 7.65 |
| 2. | Zimbabwe | 7.65 |
| 3. | Ethiopia | 7.64 |
| 4. | DRC | 7.53 |
| 5. | Mozambique | 6.62 |
| 6. | Cameroon | 6.53 |
| 7. | Egypt | 6.30 |
| 8. | Uganda | 6.22 |
| 9. | Ghana | 5.85 |
| 10. | Algeria | 5.85 |
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