The Legatum Institute an International think tank that is behind the Prosperity Index released the Africa Prosperity Report 2016 that shows how African countries rank in terms of prosperity. At the top of the list was South Africa, one of Africa”s richest countries and at the bottom was Africa’s poorest country, Central African Republic.
Wealth of a country was not however a determinant of the country’s ranking. The Africa Prosperity Report reveals that some countries are performing rather well on the Prosperity ranking despite of their wealth while others weren’t. This was revealed when the level of prosperity delivered by a country was compared to the level of prosperity expected from that country given its wealth. In this segment of the report, the countries that actually deserved praise were highlighted. Rwanda for example was at the top of this list while it only has a third of Angola’s riches, a country that was nearly at the bottom of this list. Other countries that were also over delivering as compared to their wealth were: Senegal, Morocco, Burkina Faso, Ghana, Kenya, Mali and Benin in descending order.
The Prosperity Index uses factors such as economy, entrepreneurship and opportunity, governance, education, health, safety and security, personal freedom and social capital to rank the countries under high, middle or low rankings. Out of the 38 African countries that were ranked, South Africa was at the very top, Rwanda was the most improved country as it had risen 10 ranks within Africa since 2009 and Tanzania was the least improved as it had dropped 5 ranks within Africa since 2009.
The report found that the key to prosperity in these African countries were economic complexity, governance, in particular a system that encourages private sector development and finally civil liberties and free choice.
You can read more about the Africa Prosperity Report or download the report from here.