Bribery is a widespread issue that impacts business operations and economic progress globally. In Africa, certain nations face significant bribery risks, posing challenges for both local and international businesses.
Transparency International identifies bribery as a prevalent form of corruption worldwide. In many African nations, where institutional oversight is often limited, bribery can significantly influence various aspects of business, from procurement processes to international investments.
The TRACE Bribery Risk Matrix evaluates business bribery risk across 194 jurisdictions, territories, and regions. The overall risk score combines four domains: Business Interactions with Government; Anti-Bribery Enforcement; Government and Civil Service Transparency; and Civil Society Oversight, including media involvement.
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This year’s data shows that North Korea, Turkmenistan, Syria, Equatorial Guinea, and Yemen have the highest commercial bribery risks. In contrast, Norway, New Zealand, Switzerland, Sweden, and Denmark have the lowest risks.
Here are the top 10 African countries facing the highest business bribery risks
1. Equatorial Guinea — bribery risk score 87
Equatorial Guinea ranks 191st globally, making it the highest-risk country on the continent. Businesses operating here face considerable challenges due to the widespread nature of bribery, which affects various sectors, including the oil industry. The risks are compounded by the opaque nature of government operations and limited transparency.
2. South Sudan — bribery risk score 81
South Sudan ranks 189th globally. The young nation continues to struggle with issues related to governance and corruption, largely driven by ongoing conflict and political instability. Bribery risks are prevalent, affecting the ease of doing business and deterring investment. The lack of infrastructure and institutional weaknesses further exacerbate the problem.
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3. Republic of Congo — bribery risk score 79
The Republic of Congo with a global ranking of 187. Businesses in the Republic of Congo face substantial bribery risks, particularly in the oil and mining sectors, which dominate the economy. The country’s regulatory environment is often seen as unpredictable, with corruption permeating various levels of government and business operations.
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4. Chad — bribery risk score 78
Chad ranks 186th globally, reflecting significant bribery risks. The country’s economy is heavily dependent on oil, and the sector is marred by corruption and bribery. Businesses often encounter demands for unofficial payments to navigate regulatory hurdles, obtain licenses, or secure contracts. The lack of strong institutions and the ongoing security challenges in the region further contribute to the high bribery risks.
5. Democratic Republic of Congo — risk score 77
The Democratic Republic of Congo (DRC) ranks 185th globally. The DRC is rich in natural resources, but businesses operating here must navigate a complex web of bribery and corruption. The extraction industries, particularly mining, are heavily affected by these risks. The country’s legal and regulatory frameworks are often weakly enforced, creating an environment where bribery is a common practice.
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6. Somalia — bribery risk score 75
Somalia is ranked 182nd globally, with significant bribery risks stemming from its long-standing conflict and lack of a central government. The country’s economy is largely informal, and businesses face constant demands for bribes from various actors, including government officials and militia groups. The absence of effective governance structures makes it challenging to conduct business without encountering bribery.
7. Central African Republic — bribery risk score 75
The Central African Republic (CAR) ranks 180th globally. The country’s business environment is fraught with bribery risks, particularly due to ongoing conflict and political instability. The lack of a functioning legal system and weak regulatory oversight allows bribery to flourish. Businesses in the CAR often face challenges in securing contracts or licenses without resorting to bribery.
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8. Libya — bribery risk score 74
Libya ranks 179th globally. Since the fall of its previous regime, the country has been in a state of turmoil, with various factions vying for control. This instability has created an environment where bribery is widespread. The lack of a unified government and the presence of competing authorities make it difficult for businesses to operate without encountering demands for bribes.
9. Eritrea — bribery risk score 74
Eritrea ranked 178th globally, presents significant bribery risks for businesses. The country’s economy is tightly controlled by the government, and the lack of transparency in government operations contributes to the high levels of bribery. Businesses often face challenges in dealing with government officials, with bribery being a common expectation in exchange for services or approvals.
10. Mauritania — bribery risk score 73
Mauritania ranks 177th globally, closing the list of the top 10 African countries with the highest business bribery risks. The country’s business environment is characterized by bureaucratic hurdles and a lack of transparency, creating opportunities for bribery. Businesses operating in sectors such as mining and fishing are particularly vulnerable to these risks, often encountering demands for bribes to secure contracts or permits.
