Nigeria Escapes Top 10 List of African Countries Facing Highest Business Bribery Risks

• Certain African countries have high levels of bribery, which presents difficulties for both domestic and foreign companies
• A new report ranks highest business bribery risks in the world based on Business Interactions with the government and some other factors
• According to the report, Equatorial Guinea, South Sudan and others rank top of the list of highest business bribery risks in Africa

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

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.

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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Here are the top 10 African countries facing the highest business bribery risks:

1. Equatorial Guinea — bribery risk score 87

Equatorial Guinea is the most business risky nation on the continent, coming in at number 191 in the world. The pervasiveness of bribery in this region presents significant obstacles for businesses, as it impacts multiple industries, notably the oil and gas sector.

2. South Sudan — bribery risk score 81

South Sudan is ranked 189th in the world. The nascent country still faces challenges with corruption and governance, which are mostly caused by political unrest and continuous fighting.

3. Republic of Congo — bribery risk score 79

Republic of Congo, ranked 187th in the world. Businesses in the Republic of Congo are exposed to significant bribery concerns, especially in the country's two main economic sectors—oil and mining.

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4. Chad — bribery risk score 78

Chad's ranking of 186th in the world indicates a high danger of bribery. The oil industry, which is tainted by bribery and corruption, is vital to the nation's economy.

5. Democratic Republic of Congo — risk score 77

The Democratic Republic of the Congo (DRC) is ranked 185th in the world. Although the DRC has an abundance of natural resources, companies that operate there have to deal with a complicated web of corruption and bribery.

6. Somalia — bribery risk score 75

Somalia, which is rated 182nd in the world, has a high risk of bribery due to its protracted conflict and absence of a central authority.

7. Central African Republic — bribery risk score 75

Ranked 180th in the world is the Central African Republic (CAR). Because of the continuous violence and political unrest, there is a high risk of bribery in the nation's commercial climate.

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8. Libya — bribery risk score 74

Libya is 179th in the world. The nation has been in a state of chaos since the overthrow of its last government, with many groups fighting for power. Because of this volatility, bribery is pervasive in the current context.

9. Eritrea — bribery risk score 74

Eritrea, which is rated 178th in the world, poses serious bribery risks to companies. The government has strict control over the nation's economy, and a large part of the bribery problem stems from the opaque nature of government activities.

10. Mauritania — bribery risk score 73

Closing the top 10 African countries with the biggest commercial bribery risks is Mauritania, which comes in at position 177 in the world rankings. The business climate in the nation is marked by opaque practices and bureaucratic roadblocks, which encourage bribes.

Report shows fastest-growing companies in Africa

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Legit.ng reported that the Financial Times has released a new ranking of the fastest-growing companies in Africa. Many African economies are struggling to recover from the COVID-19 pandemic.

According to the report, the International Monetary Fund said Africa’s economy grew by 3.2% in 2023, lower than in Asia, where the economy grew by almost 5%.

In its expanded report on companies in Africa, FT said Nigeria ranked second with the fastest-growing companies on the continent, after South Africa, which parades the highest number of companies on the list.

Source: Legit.ng