What truly determines long-term economic progress is the strength, stability and predictability of a country’s overall business environment.
The report assesses more than 125 countries using over 30 indicators to measure how accessible and frictionless national systems are for entrepreneurs.
Unlike broad economic rankings, the index focuses specifically on conditions that matter to founders including regulation, access to capital, taxation, digital infrastructure and global mobility.
Countries are scored on a 0–100 scale based on institutional support and operational ease.
Africa’s top performers
In Africa, South Africa ranks 61st globally, making it the continent’s highest-rated business environment. It is followed by Kenya (68th) and Cape Verde (70th).
While none of the African economies cracked the global top 50, their rankings highlight where reforms are beginning to create 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.
How the index works
The IBEI is structured around three core pillars:
Ease of Operating a Business
Business Incentives
Market Perception
To deepen analysis, these are further grouped into five functional categories: Regulation & Governance, Access to Capital & Financial Infrastructure, Taxation, Digital Infrastructure, and Global Mobility & Openness.
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. Meanwhile, 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.