Africa’s recovery from the global economic crisis has been faster than in other parts of the world. It averages a growth of 5.2 percent annually in gross domestic product (GDP). It is experiencing its highest economic growth in decades and is getting increasing attention by global business enterprises.

The African continent offers the highest return on direct foreign investment, far exceeding other regions; this is according to UNCTAD, the UN Trade Agency, as well as the Overseas Private Investment Corporation (OPIC).

There are extraordinarily possibilities in doing business with Africa, particularly in areas such as agribusiness, infrastructure, tourism, information technology and telecommunications.  And, as the demand for consumer and capital goods is rapidly increasing the continent provides immense opportunities as a market.

Africa in the Global Competitiveness Index 2011

According to the World Economic Forum's The Africa Competitiveness Report 2011, the then highest ranked countries in Africa are Tunisia, South Africa, Mauritius,  Botswana, Namibia, Morocco, Rwanda, Egypt, Algeria and The Gambia.  

The Africa Competitiveness Report 2011 measures institutions, policies, and factors such as education and access to markets that contribute to sustainable economic prosperity. It also underlined the need for increasing trade, enhancing higher education, ensuring entrepreneurial opportunities for women and developing the tourism sector in order to improve the African continent's economic prospects. 

Constraints in doing Business in Africa

Investing in African markets is however still  a high risk as it is for emerging markets. And there are a number of factors limiting economic growth on the African continent.

The high levels of transaction costs in Africa are considered to be one of the most important factors. According to the World Bank's Doing Business Report of 2010, the minimum capital requirements to start up a business is a huge obstacle for entrepreneurs and amongst the ten economies, world wide, with the highest requirements, nine are in Sub-Saharan Africa.

Effective general and professional business services such as accounting, legal services, consulting, project management and real estate agencies can play a major role in reducing the cost of doing business in Africa.