InvestInsightAfrica
Methodology

How the scoring model works.

The /10 score is built from 7 weighted layers, adjusted to your profile (Startup / SME / Industrial), then corrected by a macro risk penalty. No parameter is fixed \u2014 everything depends on who you are.

Scoring model overview

Each country receives a composite score from 0 to 10, computed from seven weighted dimensions. The weights vary by investor profile \u2014 a startup prioritizes execution speed over tax regime depth, while a large industrial group prioritizes fiscal attractiveness and macro stability.

Scores are computed independently for each country, then ranked. The model does not use relative normalization \u2014 a score of 7.4 means the same thing regardless of which other countries are in the comparison set.

The seven dimensions & profile weights

ComponentWhat it measuresStartupSMEIndustrial
Tax AttractivenessCorporate tax rate, exemptions, incentive duration, ZFI / GDIZ access
12%
15%
15%
Operational CostsLabor cost, energy, office rent, banking fees
12%
16%
18%
Execution EaseCompany formation speed, digitalization, one-stop shop, ease of business
25%
10%
7%
Macro StabilityInflation, debt/GDP, growth, FX reserves, monetary union
10%
10%
12%
Business ClimateIFI relations, recent reforms, LP investor sentiment, country signals
8%
7%
8%
Sector RelevanceCountry x sector fit: infrastructure, ecosystem, recognized hub, value chain
18%
24%
24%
Market AccessibilityMarket size, middle class, ECOWAS regional access, digital penetration
15%
18%
16%

Each component is scored /10, then multiplied by its weight. The sum yields the raw score (before risk penalty).

The macro risk penalty

The raw score is reduced by a penalty computed from 4 weighted risk factors (debt, inflation, FX, governance), capped by profile type.

Base formula
score_final = score_brut − penalty_risque. Cap: −1.5 pts (Startup / Industrial) or −1.2 pts (SME).
FX Shield — exporters
If orientation = export, the FX penalty is multiplied by ×0.55 — exporters generate their own currency, reducing FX exposure.
Sector override
Certain country × sector pairs reduce the penalty (e.g. Ghana mining, Senegal oil). The sector contextualizes macro risk — it doesn't cancel it.
Data confidence
If a country's fiscal data is older than 12 months, a stale-data confidence penalty is applied automatically.

Three illustrative scenarios

Startup · Tech · Innovation
B2B SaaS Fintech — small budget, seeking ecosystem
🇸🇳 Senegal recommended
Why: The execution layer (25% for startups) benefits Senegal — ADEPME, FONSIS, Dakar Tech ecosystem. The tech sector gets a favorable sector override. DER/FJ 5% loan unique in AOF.
SME · Agro-industry · Export
Groundnut/cashew processing — mid budget, fiscal priority
🇧🇯 Benin recommended
Why: Sector relevance (24% for SME) favors Benin — developed agro value chain, GDIZ R1 access, Port of Cotonou. FX Shield reduces risk penalty for exporters.
Industrial · Mining · Security
Gold/bauxite extraction — large budget, legal security priority
🇬🇭 Ghana recommended
Why: The mining×GH sector override is the strongest in the engine — mining infrastructure, GIPC, proven anglophone legal framework. FX penalty reduced (export-generating).

Data standards & limitations

Official

Sourced directly from official government or regulatory texts. Highest confidence.

Estimated

Derived from official adjacent sources or industry surveys. Moderate confidence.

Modeled

Computed from related inputs using documented methodology. Indicative only.

  • Scores reflect declared/published regimes, not the negotiated outcomes available to large anchor investors.
  • Sector scores are aggregated indicators, not country-specific sectoral feasibility studies.
  • The model does not account for specific project-level factors (site availability, off-take agreements, partner quality).
  • GHS (Ghana Cedi) FX volatility is factored into macro scores but not into fiscal savings calculations.
  • Data is verified at the publication date shown. Tax laws and incentive regimes change — always verify with official agencies.

Primary sources

OrganisationTypeUsed for
World BankOfficialEase of Doing Business, governance, GDP data
IMFOfficialMacro forecasts, inflation, balance of payments
BCEAOOfficialUEMOA monetary data, FCFA zone rates
OHADAOfficialBusiness law, formation requirements
APIEX (Bénin)OfficialInvestment code, regime conditions, thresholds
CEPICI (CI)OfficialCôte d'Ivoire investment code, VITIB conditions
APIX (Sénégal)OfficialInvestment code, Startup Act, Diamniadio conditions
GIPC (Ghana)OfficialGhana investment promotion, GFZA conditions

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