How are the most developed countries in Africa picked

The most developed countries in Africa come from the United Nations Development Programme latest report (2019). Every year, the organization releases indices and indicators on key human development. The data reported gives an overview of the state of development across the world and helps in identifying long term trends and improvement areas.

Developed countries are measured using the Human Development Index (HDI), the data collected is used to rate countries according to life expectancy and health, economic growth, standard of living and education. Globally, many regions show considerable improvements.

Below are the 10 most developed countries in Africa, based on the Human Development Index.

Top 10 Most Developed Countries in Africa

1. Seychelles

With approximately 95,500 inhabitants (2018), Seychelles drives most of its economic growth through tourism. This has been gradually moving the country’s position towards upper-middle-income. One of the main challenges for Seychelles is reduce its dependence on tourism. This could be achieved by attracting investments in other business sectors.

Global rank – 62

Life expectancy – 73.7 years

Expected years of schooling – 14

Mean years of schooling – 9.5

Gross National Income per Capita – 26,077

2. Mauritius

After gaining its independence in 1968, Mauritius has managed to greatly improve and stabilize its economy. With its 1.3 million multicultural inhabitants, the country is considered as one of the most promising countries in Africa. One of the key challenges of Mauritius is reducing income-based inequality, which has been on the rise as the economy progresses.

Global rank – 66

Life expectancy – 74.9

Expected years of schooling – 15.1

Mean years of schooling – 9.3

Gross National Income per Capita – 20,189

3. Algeria

Algeria is a major player in the MENA region and has achieved a remarkable feat by reducing poverty by 20% in the past two decades. The largely positive economic performance of the country has improved development and greatly contributed to socio-economic stability. On the downside, depressed oil prices has brought a rapid decline to Algeria’s currency reserves.

Global rank – 85

Life expectancy – 76.3

Expected years of schooling – 14.4

Mean years of schooling – 8.0

Gross National Income per Capita – 13,802

4. Tunisia

With a relatively turbulent past, Tunisia has gradually been developing into a more stable economy. The country is slowly recovering from the years of conflict and growth is steadily gaining momentum. Tunisia’s economy is mainly supported by tourism, agriculture and electrical and mechanical exports. Poverty remains a major roadblock for the North African country’s ambitions – certain regions show up to 30.8 percent of the population living in dire conditions.

Global rank – 95

Life expectancy – 75.9

Expected years of schooling – 15.1

Mean years of schooling – 7.2

Gross National Income per Capita – 10,275

5. Botswana

Botswana gained its independence in 1966 – at that time, it was one of the poorest countries in the world. Yet, it quickly became an example of development success on the African continent; averaging 5% growth per annum over the past decade. The economy is mainly driven by mining, construction and the service sector. One major problem the country has to deal with is poverty, which is due to high unemployment.

Global rank – 101

Life expectancy – 67.6

Expected years of schooling – 12.6

Mean years of schooling – 9.3

Gross National Income per Capita – 15,534

6. Libya

In the coming years, Libya could become a very big player in oil exports. Improved political arrangements have seen the country develop considerably over a short period of time. As growth steadies, inflation will most likely slow down. Over the past years, cumulative inflation has pushed a good number of Libyan households in poverty, as many lost almost 80 percent of their purchasing power.

Global rank – 108

Life expectancy – 72.1

Expected years of schooling – 13.4

Mean years of schooling – 7.3

Gross National Income per Capita – 11,100

7. Gabon

Gabon is the fifth largest oil producer in Africa and has one of the highest urbanization rates on the African continent. The upper-middle-income has known strong development over the past decade, which was mainly driven by its production of oil and manganese. The oil sector accounts for 45% of the country’s GDP and 60% of fiscal revenue on average over the past years. As the country’s oil reserves face a decline, Gabon are looking for other areas of expansion. Investments in the private sector is encouraged as the country looks to break free of their reliance on the oil sector.

Global rank – 110

Life expectancy – 66.5

Expected years of schooling – 12.8

Mean years of schooling – 8.2

Gross National Income per Capita – 16,431

8. South Africa

With its highly developed economy and advanced economic infrastructure, South Africa is a major player on the African continent. Being one of the world’s largest producers and exporters of gold and platinum, the country has considerably developed its financial, legal, energy and transport sectors. Lately, progress has been slowing down and South Africa is known to have one of the highest inequality rates in the world.

Global rank – 113

Life expectancy – 63.4

Expected years of schooling – 13.3

Mean years of schooling – 10.1

Gross National Income per Capita – 11,923

9. Egypt

Since early 2014, Egypt has been constantly improving its economic activities. Amendments and reforms adopted seem to bear their fruits as the country has seen their GDP grow by 5.3%. Export of goods and services, improvement in foreign exchange reserves and a more dynamic tourism sector have greatly contributed to massive development in Egypt. The coming years will tell if the government manages to cut down the unemployment rate and improve the weak health care system of the country.

Global rank – 114

Life expectancy – 71.7

Expected years of schooling – 13.1

Mean years of schooling – 7.2

Gross National Income per Capita – 10,355

10. Morocco

Morocco’s economy is solid and versatile. The country has seen unexpected growth in various industries over the past years. Lately, the country is facing an economic slowdown; this has not prevented them from engaging in massive development. Currently, the country is focusing on enhancing its high-value added industries and this has brought about a strong recovery on the European market. The main challenge remains booting the private sector to encourage job creation for the younger generation.

Global rank – 123

Life expectancy – 76.1

Expected years of schooling – 12.4

Mean years of schooling – 5.5

Gross National Income per Capita – 7,340

Investing in the most developed countries in Africa

The African continent has a huge potential for further growth. This makes Africa a very good investment opportunity – many companies have seized this occasion to expand their business to the continent. Countless organizations have already taken the leap and are now enjoying the privilege of being onboard at the ‘right time’. Ultimately, the cost of getting a business up and running in Africa will be as outrageously expensive (think of expanding a business to Europe, USA or even Asia).

Expanding in the most developed countries may not be an easy task; governing laws pertaining to business operations, employment, tax compliance, offshore services or even expat immigration will vastly differ depending on where you want to settle down. Registering an entity in many regions across Africa can take a long time.

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