Lesotho is the country which has the lowest total average tax rates for businesses, the Paying Taxes 2016 published by PricewaterhouseCoopers (PwC) and World Bank reports on November 19.

Based on the 2014 tax legislation which defines a model-business, the report which evaluates annual taxes and compulsory contributions of small and medium enterprises (tax on profits, contributions and social charges of employer, land tax, dividend tax, tax on assets transfer, etc.) set Lesotho’s tax rate at 13.6% of commercial result.

Zambia is second with a total average tax rate of 18.6%. It is followed by Namibia (21.3%), Mauritius (22.4%), Botswana (25.1%), South Africa (28.8%), Southern Sudan (29%), Seychelles (30.1%), Sierra Leone (31%). Ethiopia closes the Top 10 of African countries with a total average tax rate of 32.1%. (Below, see full ranking listing all 53 countries included in the report).

Overall for Africa, the total average tax rate for companies is 46.9% of commercial result. African companies globally pay 36.6 taxes annually and spend 313 hours to conform to tax legislation.

Comparing to 2013, in 2014, average tax rate was overall stable in 60% of the 53 countries studied. It increased in 23% of the countries and decreased in 17%.

After South America, Africa is the second region in the world with the highest tax rates and time required to conform to tax laws. The region with the lowest tax rates for businesses is the Middle East (24.2%).

Worldwide, total average tax rate for companies is 40.8% of commercial result. Businesses proceed to 25.6 taxes payments yearly and spend 261 hours to conform to tax regulation, thus 2 hours less than a year ago.

Ranking of 53 African countries for total average tax rates for businesses:

1-Lesotho / total average tax rate (13.6%)

2-Zambia (18.6%)

3-Namibia (21.3%)

4-Mauritius (22.4%)

5-Botswana (25.1%)

6-South Africa (28.8%)

7-South Sudan (29%)

8-Seychelles (30.1%)

9-Sierra Leone (31%)

10-Ethiopia (32.1%)

11-Ghana (32.7%)

12-Libya (32.8%)

13-Zimbabwe (32.8%)

14-Rwanda (33%)

15-Nigeria (33.3%)

16-Malawi (34.5%)

17-Swaziland (34.7%)

18- Mozambique (36.1%)

19-Cape Verde (36.5%)

20-Uganda (36.5%)

21-Kenya (37.1%)

22-Djibouti (37.6%)

23-Madagascar (38.1%)

24- Sao Tomé-and-Principe (38.2%)

25-Burundi (40.3%)

26-Burkina Faso (41.3%)

27-Tanzania (43.9%)

28-Egypt (45%)

29-Sudan (45.4%)

30-Guinea Bissau (45.5%)

31-Gabon (45.7%)

32-Equatorial Guinea (47.1%)

33-Senegal (47.3%)

34-Liberia (47.8%)

35-Niger (48.2%)

36-Mali (48.3%)

37-Angola (48.4%)

38-Togo (48.5%)

39-Cameroon (48.8%)

40-Morocco (49.1%)

41-Côte d’Ivoire (51.9%)

42-DR Congo (54.6%)

43-Congo (56%)

44-Tunisia (59.9%)

45-Benin (63.3%)

46-Gambia (63.3%)

47-Cchad (63.5%)

48-Guinea (68.3%)

49-Mauritania (71.3%)

50-Algeria (72.7%)

51-Central Africa (73.3%)

52-Eritrea (83.7%)