Business bribery risks are a major issue for companies operating on a global scale, especially in regions where transparency and governance can differ widely.
Some countries in Africa have made progress in reducing these risks, establishing more conducive environments for business operations.
According to Transparency International, bribery is a widespread form of corruption globally. In many African countries, where institutional oversight may be limited, bribery can heavily impact various business activities, including procurement and international investment decisions.
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The TRACE Bribery Risk Matrix assesses business bribery risk across 194 jurisdictions, territories, and regions. The overall risk score is determined by four key areas: Business Interactions with Government, Anti-Bribery Enforcement, Government and Civil Service Transparency, and Civil Society Oversight, which also considers media involvement.
Countries like Seychelles and South Africa have implemented effective anti-bribery measures, while others are working to improve transparency and reduce corruption. These actions are key to creating a favourable business environment, attracting investment, and supporting economic growth. As these nations strengthen their governance, they set a standard for others in the region.
The current data indicates that North Korea, Turkmenistan, Syria, Equatorial Guinea, and Yemen face the highest commercial bribery risks, while Norway, New Zealand, Switzerland, Sweden, and Denmark have the lowest.
Read also: Africa’s 10 riskiest countries for businesses
Here are the top 10 African countries with the lowest business bribery risks
1. Seychelles
Seychelles ranks as the African country with the lowest business bribery risk. The country’s bribery risk score is 36, placing it at the 44th position globally. Seychelles has developed robust mechanisms to curb bribery, making it a safer place for business operations. The emphasis on legal frameworks and regulatory bodies helps maintain this low-risk environment.
2. South Africa
South Africa is second in Africa, with a bribery risk score of 39, ranking 56th globally. Despite being a major economy on the continent, South Africa continues to address challenges related to business bribery. The country’s anti-corruption measures, along with active civil society engagement, contribute to its relatively lower bribery risk.
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3. Cape Verde
Cape Verde holds the third position in Africa with a bribery risk score of 42, ranking 62nd globally. The nation’s efforts in enhancing transparency and accountability have resulted in a more favourable business climate. Legal reforms and international cooperation have been pivotal in reducing the risks associated with bribery in the business sector.
4. Lesotho
Lesotho shares a similar bribery risk score with Cape Verde, standing at 42 but ranking 65th globally. The country’s governance structures, although facing challenges, have managed to limit the prevalence of business bribery. Lesotho’s position reflects ongoing efforts to strengthen institutions and enforce anti-bribery regulations.
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5. Botswana
Botswana ranks fifth in Africa, with a bribery risk score of 44 and a global rank of 73. The country has long been recognized for its stable governance and commitment to transparency. Botswana’s business environment is supported by a strong legal framework that discourages bribery, thereby attracting both local and foreign investment.
6. Namibia
Namibia closely follows Botswana, with a bribery risk score of 45, ranking 74th globally. The country’s consistent efforts to combat corruption and enhance the integrity of its business environment have contributed to its position on this list. Namibia’s legal institutions play a key role in maintaining low bribery risks for businesses operating within its borders.
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7. Mauritius
Mauritius ranks seventh in Africa with a bribery risk score of 46, placing it 80th globally. The country’s business-friendly policies and focus on good governance have been instrumental in minimizing bribery risks. Mauritius continues to be a preferred destination for businesses due to its regulatory environment and proactive measures against bribery.
8. Ghana
Ghana shares the same bribery risk score as Mauritius, standing at 46 but ranking 81st globally. The country has made significant progress in creating a transparent business environment. Ghana’s efforts to tackle bribery through legislative reforms and public awareness have been key to reducing risks in the business sector.
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9. Senegal
Senegal has a bribery risk score of 47, ranking 84th globally. The country’s position reflects its ongoing initiatives to improve governance and reduce corruption. Senegal’s legal framework, combined with international partnerships, has contributed to the reduction of bribery risks, making it a safer environment for business operations.
10. Tunisia
Tunisia completes the list with a bribery risk score of 47, ranking 86th globally. The country has faced various challenges in recent years but has managed to maintain a relatively low bribery risk in its business sector. Tunisia’s efforts to reform its legal and institutional frameworks have been critical in controlling bribery risks.
