Economic freedom is vital for people and businesses to make their own choices. When a nation’s economy is free, its citizens prosper.
But when a government controls too much, economic growth suffers. Every year, the Economic Freedom Index measures this balance on a 0-100 scale.
The index considers various factors like property rights, tax burdens, and trade freedom to give each nation a score.
In Africa, economic freedom varies widely, according to the 2023 Index. Mauritius leads the continent, scoring higher than some European nations at 70.6.
Conversely, Sudan’s score of 32.8 reflects its ongoing conflicts and institutional issues.
The index ranks countries in five categories based on their scores. A score above 80 indicates a “free” economy.
Between 70 and 79.9, the economy is “mostly free.” A score between 60 and 69.9 is “moderately free,” 50 to 59.9 is “mostly unfree,” and below 50 is “repressed.”
Regions within Africa show diverse economic health. North Africa has Morocco leading the way at 58.4, while Algeria lags at 43.2.
The Horn of Africa paints another mixed picture; Djibouti outperforms with a score of 56.1, whereas Eritrea struggles at 39.5.
West Africa shows promise, with Cape Verde leading at 65.8. But Mali and Mauritania hover just above 50, showing a need for improvement.
In Southern Africa, Botswana follows Mauritius with a respectable 64.9, while Zimbabwe’s 39.0 indicates severe challenges.
East Africa is a mixed bag too. Tanzania scores the highest at 60.0, but Uganda and Rwanda linger in the low 50s.
Despite Africa’s struggles, it has the most untapped growth potential. Experts expect the continent’s population to surge, fuelling innovation and labor force expansion.
While Africa has yet to see a country hit the 75-point “mostly free” mark, the future is not bleak.
Some nations like Mauritius and Cape Verde can serve as models for others.
The road ahead is long but filled with opportunities for economic development across the continent.