In Kenya alone, at least 450,000 businesses die annually. This translates to at least 30,000 monthly and at least 1,000 daily.
Starting a business in Africa is not a walk in the park. One has to plan, sacrifice, and be ready to encounter an overwhelming amount of pressure and disappointments. One of the major challenges of starting a business in Africa is the cost of doing business.
In Kenya alone, at least 450,000 businesses die annually. This translates to at least 30,000 monthly and at least 1,000 daily. The main attribute is usually the cost of doing business that has made even giants abandoning the market for other countries.
Taxes in Kenya as well as corruption are the two largest enemies of businesses in the country. Power costs, poor infrastructure in terms of roads are among the things that are killing businesses around the country. The government seems to be clueless.
According to Business Financing, starting a business in Kenya one would need at least 352.93 US dollars or 35,293 shillings as the “cost of starting.” This is in sharp contrast to what is happening in Rwanda where the cost of starting a business is free.
The cost of starting a business is highest in the Democratic Republic of Congo. one would need 1,236.67 US Dollars to start a business. This is at least 123,667 shillings. DRC is the only country in Africa and the world with all the natural resources.
The cost of starting a business is the lower in South Africa. one would need just 12.66 US Dollars to start a business or about 1,266 shillings. The cost of starting a business in Botswana is 40.44 UD Dollars while in Lesotho is at 85.46 US Dollars.
Contrary to what many people believe, the cost of starting a business in Sudan is the lowest in Africa. The cost stands at 8.49 US Dollars, about 849 shillings. In Ethiopia, the cost of starting a business is 152.78 US Dollars. In Somalia, the cost stands at 900 US Dollars.
At the same time, 88 percent of SMEs across the Middle East and Africa have identified government support and implementation of effective policies as key business support areas for future growth, according to Mastercard MEA SME Confidence Index.
The research correlates regional government efforts to advance GDP recovery and growth, to the implementation of supportive measures for the SME sector and the digital economy.
In addition to looking for effective regulatory support from governments, 92% of SMEs in MEA said they are also looking for support in upskilling of their teams.