Photo Credit: Business Insider Africa

Africa’s diverse landscapes and cultures present enticing opportunities for enterprises, but they also come with a unique set of challenges. Despite the economic growth in many African nations, businesses still grapple with substantial risks.

According to the 2023 “The Africa Risk-Reward Index” report by Oxford Economics Africa, an independent economic advisory firm, this report delves into the balance between risks and rewards in African countries. It explores factors such as polarization, African-led security interventions, and financial strategies for the future.

To determine the risk-reward ratio for establishing foreign businesses, this research considers three critical factors. The report utilizes risk scores from the Economic and Political Risk Evaluator (EPRE), a platform jointly operated by Control Risks and Oxford Economics Africa. Analysts rate political and economic risk factors on a scale from 1 to 10, with 10 representing the highest risk level. These ratings are then weighted based on their significance and potential impact on business, resulting in an overall risk rating for each country.

Here are the top 10 riskiest African countries for doing business in 2023, as highlighted by the report: