Easiest African countries to do business in (2026): B-READY rankings and the full picture

Rwanda ranked first in Africa in the World Bank's B-READY 2025 assessment, earning an overall score of 67.94 -- the only sub-Saharan African economy placed in the 1st global quintile of all 101 countries evaluated. Morocco ranked second with 63.44, and Mauritius third with 63.20. The B-READY report, published in December 2025, is the second edition of the World Bank's replacement for the Doing Business index, which was suspended in 2021 after data irregularities. This guide covers the full Africa rankings, a deep dive on the top five, and practical data on the four major African economies the report currently excludes: Nigeria, Kenya, South Africa, and Egypt.

What B-READY measures and why it replaced Doing Business

The old Doing Business index was discontinued after an independent review found that data had been manipulated in the 2018 and 2020 editions. The World Bank launched B-READY in 2024. The key difference is methodology: Doing Business primarily surveyed legal experts on the books, producing rankings that reflected what the law said rather than how business actually experienced it. B-READY surveys 58,000 firms and 5,000 experts to measure what happens on the ground.

B-READY evaluates three pillars across 10 domains covering the full lifecycle of a firm.

The 10 domains are: business entry, location, utility services, labor, financial services, international trade, taxation, dispute resolution, market competition, and insolvency. Each is scored 0-100 and aggregated.

In the 2025 edition, the World Bank surveyed 101 economies globally, up from 50 in 2024. Africa's coverage expanded to 29 countries from 15. New African entrants in 2025 included Benin, Senegal, Tunisia, Namibia, and DRC.

The report's central global finding: regulations are easier to enact than services to deliver. The gap between Regulatory Framework scores and Public Services scores is 2.8 times wider in young-workforce economies like those in SSA than in mature economies. African governments can write good laws faster than they can build the digital infrastructure to implement them.

Quick answer: top 5 African countries by B-READY 2025

Source: World Bank B-READY 2025, December 2025

Every African country in the top 10 sits in the 3rd global quintile -- except Rwanda, which stands alone in the 1st. The gap between Rwanda and the rest of Africa is meaningful and reflects a decade of deliberate institutional investment.

The full African B-READY 2025 rankings

Source: World Bank B-READY 2025; Ecofin Agency; Togo First; Business Insider Africa

Note: full pillar scores for ranks 2-10 were not published at the aggregate summary level. The data above reflects what was available in published summaries of the B-READY 2025 report.

#1 Rwanda: why Kigali is East Africa's business capital

Rwanda's score of 67.94 is not a surprise to anyone who has tracked the country's institutional reform over the past 15 years. What is striking is the margin.

Rwanda's Operational Efficiency score of 71.47 places it 12th globally -- on par with Canada and the United Kingdom. Its Regulatory Framework score of 72.54 is the highest in Africa on that pillar. A company can be incorporated in Rwanda in roughly three working days through the Irembo digital platform, with no minimum share capital requirement. The Rwanda Development Board handles business registration as a one-stop shop.

Business entry is the domain where Rwanda's advantage is most visible: its score on that indicator is among the highest in the region, and the practical experience of registering a company is faster and cheaper than almost anywhere else on the continent.

The Business Development Fund offers guarantees to local and foreign SMEs seeking bank loans. The Special Economic Zones in Kigali have a functioning supply of industrial land. Rwanda's 2024 investment code offers a range of incentives, including a preferential 15% corporate income tax rate for qualifying companies, against the standard 30%.

The limitations are real. Rwanda is a small economy, with GDP around $16 billion. The consumer market is limited. Infrastructure outside Kigali is thinner. The political environment is stable but not pluralist. Investors entering Rwanda for the business climate should have a clear strategy for how to use it: as a regional headquarters, a holding company base, a financial services operation, or a manufacturing export platform.

#2 Morocco: the gateway between Africa and Europe

Morocco's score of 63.44 makes it second in Africa and the top performer in North Africa. Its Regulatory Framework score of 70.06 is the highest on that pillar among all African countries assessed.

The broader economic context reinforces the B-READY ranking. S&P restored Morocco to investment grade in 2025. FDI inflows reached 39.3 billion dirhams in January-August 2025, a 43.4% year-on-year increase. The automotive sector -- anchored by Renault and Stellantis manufacturing plants -- exported over 700,000 vehicles in 2024. The aerospace sector has grown to more than 140 active companies, many serving Airbus and Boeing supply chains.

Morocco holds an EU-Morocco Advanced Status trade agreement and direct ferry and rail links to Europe. The Tanger Med port complex is the largest container port in Africa and the Mediterranean. For companies wanting to manufacture for European markets using African labor costs and proximity, Morocco's geography is irreplaceable.

The constraints are significant elsewhere in the economy. Rural poverty remains high. Water scarcity is a structural challenge. The corporate income tax rate is progressive at 20-31% with a 15% standard VAT and 20% withholding on dividends -- not among the lowest in Africa.

For investors in manufacturing, renewable energy, or logistics, Morocco's combination of regulatory quality, European market access, and political stability is hard to match elsewhere on the continent.

#3 Mauritius: the offshore holding company jurisdiction

Mauritius at 63.20 is Africa's most developed international financial center and has topped Africa rankings consistently since the old Doing Business era. It slipped one place in B-READY 2025 from its 2024 position, though the margin with Morocco is narrow.

The Mauritius proposition is distinct from Rwanda and Morocco: it is primarily a financial hub, not a manufacturing or services destination. Companies use Mauritius as a holding company jurisdiction for African investments, routing capital through structures that benefit from the island's network of double taxation treaties. Mauritius has active treaties with India, China, several African states, and EU members. Corporate income tax is 15%, VAT is 15%, and there is no withholding tax on dividends paid from Mauritius holding companies to foreign shareholders -- a significant structural advantage for international investors.

The actual operating economy is small. The Mauritius Stock Exchange's 2025 return of -1.41% in local currency reflects an economy that grew modestly. Financial services, tourism, and ICT dominate the business sector.

Investors set up in Mauritius for the tax and treaty architecture, not to access the domestic market.

#4 Togo: West Africa's reform overachiever

Togo's ranking as fourth in Africa and first in West Africa is the surprise on this list. Lomé is a small port city running an economy of around $10 billion GDP. Yet Togo's Business Entry indicator of 85.77 is among the highest in the region, reflecting a series of company registration reforms that dramatically simplified the process.

Togo's Regulatory Framework score of 66.26 is near the global average. The Operational Efficiency score of 57.38 is lower, which tells the real story: the laws are good, but administrative implementation has gaps. The international trade and market competition indicators lag, reflecting Togo's limited infrastructure and small domestic market.

The practical implication: Togo is a useful jurisdiction for small businesses and entrepreneurs who want a West African base with low registration friction. For large-scale investment, Cote d'Ivoire, Morocco, or Rwanda offer more depth.

Togo has maintained its West Africa reform position through multiple editions of business climate rankings. The Autonomous Port of Lomé competes directly with Abidjan for West African transit cargo. That infrastructure investment underpins the trade gateway narrative.

The missing markets: Nigeria, Kenya, South Africa, and Egypt

Here is the most important caveat for any investor using B-READY 2025: Africa's four largest economies are not in it.

Nigeria (~$334 billion GDP), Kenya (~$120 billion), South Africa (~$444 billion), and Egypt (~$400 billion) were not assessed in the 2025 edition. The World Bank is rolling out B-READY over three years, and Nigeria is expected to be included in the 2026 edition. For investors focused on these markets, B-READY simply has no answer.

The alternative frameworks provide partial substitutes.

Heritage Foundation Index of Economic Freedom 2025:

The Heritage index uses different methodology -- it weights economic freedom in monetary policy, government spending, and trade -- and should not be directly compared to B-READY scores. But it provides a reference point for the excluded economies.

Practical data for the four major excluded markets:

Nigeria operates under a dual-level regulatory structure that makes it complex for foreign businesses. The primary federal regulators include the Corporate Affairs Commission (CAC) for company registration, the Federal Inland Revenue Service (FIRS) for tax, the Nigerian Investment Promotion Commission (NIPC) for foreign investor registration, and multiple sector-specific agencies (NAFDAC, SON, NEPC, CBN for financial services). Incorporating a company in Lagos takes 10-15 working days through the CAC online portal. A capital importation process through the Central Bank is required to repatriate profits, and while the 2023 FX reform improved foreign exchange availability, the market remains managed.

Kenya's regulatory environment is generally considered Africa's most accessible for East Africa-focused businesses. CAK (Competition Authority), KRA (Kenya Revenue Authority), and the Registrar of Companies operate relatively predictable systems. Kenya is widely expected to rank in the mid-tier of B-READY 2026 when it is included.

South Africa has OECD-standard legal and regulatory infrastructure -- courts function, contracts are enforceable, accounting standards are high -- but the operating environment scores poorly on practical efficiency. Electricity supply improved in 2025 after load-shedding ended, but port and rail congestion remains a serious constraint on manufacturing and export businesses.

Egypt has improved substantially after the 2023-2024 macroeconomic stabilization, but the regulatory environment for foreign investors remains complex, with multiple approvals and sector restrictions affecting some industries.

Practical setup guide: time and cost in the top 5

Sources: World Bank B-READY 2025; company registration authority websites; KPMG Africa Tax Guide

Mauritius is the fastest and cheapest for financial holding structures. Rwanda is the best choice for an operating East African headquarters that requires physical presence, local staff, and government relationships. Morocco is the right answer for manufacturing or logistics businesses serving Europe and North Africa.

The public services gap: what B-READY's global finding means for Africa

B-READY's most important finding for Africa is structural rather than country-specific. The gap between Regulatory Framework scores (what the law says) and Public Services scores (how government actually delivers) is 2.8 times wider in young-workforce economies than in mature ones. Africa has made substantial progress in writing modern commercial laws. Building the digital infrastructure, skilled civil service, and institutional capacity to implement them takes longer.

This is why Rwanda stands alone in the 1st global quintile and the rest of Africa sits in the 3rd. Rwanda has invested in both the legal framework and the delivery infrastructure -- the Irembo platform, the RDB one-stop shop, the digitalized tax authority. Most other African countries have the laws without the systems.

For investors, the practical implication is that formal compliance costs in most African markets are higher than the legal framework suggests. A company must account for the gap between what the regulation says should take two weeks and what the process actually takes.

Frequently Asked Questions

Which African country is ranked #1 for ease of doing business in 2025?

Rwanda ranks first in Africa in the World Bank's B-READY 2025 report, released in December 2025, with an overall score of 67.94. It is the only sub-Saharan African country placed in the 1st global quintile of 101 countries assessed. Rwanda's Operational Efficiency score of 71.47 places it 12th globally, on par with Canada and the UK.

What is the World Bank B-READY index and how does it differ from Doing Business?

B-READY (Business Ready) is the World Bank's replacement for the Doing Business index, which was suspended in 2021 after data irregularities. B-READY uses three pillars -- Regulatory Framework, Public Services, and Operational Efficiency -- and surveys 58,000 firms and 5,000 experts, compared to the old index's reliance primarily on legal expert surveys. The 2025 edition is the second edition and covers 101 economies globally, including 29 in Africa.

Are Nigeria, Kenya, and South Africa included in B-READY 2025?

No. Nigeria, Kenya, South Africa, and Egypt are not included in B-READY 2025. The World Bank is rolling out coverage over three years, and Nigeria is expected to be added in the 2026 edition. Investors assessing these markets should use alternative frameworks, including the Heritage Foundation Index of Economic Freedom and country-specific World Bank enterprise surveys.

How long does it take to register a company in Rwanda?

A company in Rwanda can be registered in approximately three working days through the Irembo digital platform, the country's government services portal. There is no minimum capital requirement. Rwanda ranks 12th globally on Operational Efficiency in the B-READY 2025 assessment, reflecting the quality of its administrative systems. The Rwanda Development Board operates as a one-stop investment facilitation center.

What corporate tax rate does Mauritius offer foreign investors?

Mauritius has a corporate income tax rate of 15%, one of the lowest in Africa. There is no withholding tax on dividends paid from Mauritius holding companies to foreign shareholders, and the island has an active network of double taxation treaties with major investment destinations including India and several African states. These features make Mauritius a commonly used holding company jurisdiction for investments across the continent.

What happened to the Doing Business index?

The World Bank suspended the Doing Business index in September 2021 after an independent review found data irregularities in the 2018 and 2020 editions. Rankings for several countries, including Saudi Arabia and the UAE, had been manipulated. The World Bank subsequently launched B-READY as a methodologically stronger replacement, with the first edition in 2024 covering 50 economies and the second in December 2025 covering 101.