15 Friendliest Countries in Africa - InvestingChannel

15 Friendliest Countries in Africa

In this article, we shall discuss the 15 friendliest countries in Africa. To skip our detailed analysis of the hospitality and tourism industry in Africa in 2024, go directly and see 5 Friendliest Countries in Africa.

Africa’s Economic Outlook 2024: An Overview

According to the IMF, economic growth in Sub-Saharan Africa is slated to rise from 3.4% in 2023 to 3.8% in 2024, with nearly two thirds of countries expecting higher growth rates. The report projects economic recovery to persist far beyond 2024, with growth projections reaching 4% in 2025. Additionally, inflationary pressures have subsided by more than 50%, public debt ratios have broadly stabilized, and multiple countries have issued Eurobonds this year, a culmination of a two-year hiatus from international markets. However, there is a significant downside, especially with respect to Northern Africa. As African governments continue to struggle with financing shortages, high borrowing costs, and incoming debt repayment deadlines, there is a substantial financial squeeze impeding greater financial growth in many of the friendliest countries in Africa. Moreover, the continent continues to be increasingly vulnerable to global external shocks as the current geopolitical climate exacerbates political instability in the region.

ETF performance in the region is a good indicator of the financial unfavourability of some of the best countries to visit in Africa as of April 2024. Take for instance, the iShares MSCI South Africa ETF (NYSE:EZA), which aims to mirror the performance of an index composed largely of South African equities. The ETF provides investors with access to large and mid-sized companies in South Africa with net assets north of $254 million as of April 19. As of April 19, the fund has 32 holdings, with the most prominent ones being Standard Bank Group (JSE:SBK) and Bid Corporation Ltd. (JSE:BID). In the last five years, the ETF is down 32.45% as of April 22. Another ETF with substantial African exposure is the Amundi Pan Africa UCITS ETF (BIT:LAFRI), which tracks the benchmark index SGI Pan Africa Index, which in turn tracks some of the largest stocks listed in Africa like Naspers Ltd. (JSE:NPN) and Commercial International Bank Egypt (OTC:CIBEY). The index is equally exposed to three zones with the largest constituents capped at 10%. In the last five years, the ETF is down by 8.04% as of April 2022. With the impact of geopolitical turbulence in the Middle East and Sudan, oil production cuts, and tight policy settings in several economies, the IMF has downgraded projected growth by 0.5 percentage points to 2.3% in Northern Africa as of Q1 2024. Investors are waiting out the storm to see what the policy response to the aforementioned crises will be before ascertaining the region conducive for investment, with venture capital inflows to African startups plummeting 31%, according to Bloomberg.

Potential in Africa’s Tourism Market: An Analysis

According to a report by the Africa Economic Forum, the region’s tourism sector is projected to be a primary driver of the continent’s economic growth through its travel and hospitality subsectors, especially post the Africa Continental Free Trade Agreement. Considering the progressive contribution of the tourism and hospitality industry to the continent’s GDP, the African region has emerged as the second-fastest growing tourism industry in the world, with an annual growth rate of 6.5%. The overall travel and tourism industry is considered a powerhouse sector of the African economy, with a contribution of $186 billion to the region’s economy. In 2022, the friendliest countries in Africa welcomed more than 80 million international tourists, with the tourism industry employing more than 25 million people, making up 5.6% of virtually all jobs in the region. Furthermore, the region has generated more than $39.2 billion in international tourist receipts. Although international tourist arrivals on the African continent have nearly doubled by 36 million between 2000 and 2020, the Sub-Saharan region has commanded the lion’s share of this growth, attracting more than 24.7 million tourists. This is owing to the fact that at the onset of the 21st century, North Africa, particularly countries we covered in our article on the 20 Most Visited Countries In Africa, boasted a significantly well-developed tourism infrastructure, with some of the friendliest countries in Africa like Libya and Morocco attracting as many international visitors as the 48 other sub-Saharan countries combined.

However, as we covered in our article on the 30 Least Developed Countries in Africa in 2024, when pitted against other competing markets of the world, Africa’s tourism industry remains substantially underdeveloped. Of the 1.2 billion international tourists in 2022, merely 58 million made their way to the friendliest countries in Africa, roughly five percent of the world’s inbound tourism. Despite more than doubling since the onset of the twenty-first century, the region’s tourism industry continues to lag behind other developing regions like South Asia and Latin America in terms of number of international tourists received annually. Therefore, according to a report by the WTTC, the region’s tourism industry has vast untapped potential and could potentially unlock more than $168 billion by 2030.

According to Brookings however, untapping this potential could demand significant improvements in multiple areas of the African economy, particularly when considering current sectoral growth patterns as more than 57% of international tourists continue to gravitate towards developing countries as travel destinations, especially driven by growth in the adventure and nature tourism subsectors. According to the report, improvements in public goods provision are interconnected and highly dependent on infrastructure investment. In contrast with middle-income countries where levels of social development and GDP per capita tend to influence tourism growth, low-income countries only seem to attract international visitation when substantial foundations of infrastructure and education are achieved. Although it houses more than 15% of the global population, sub-Saharan Africa commands merely 4% of the world’s scheduled airline seats. Furthermore, due to skyrocketing costs of airline tickets to the friendliest countries in Africa and a heavy dependance on imports, tourism into sub-Saharan Africa costs travelers 25% to 30% more than other parts of the world. Some of the top non-African players in Africa’s tourism industry are Hilton Worldwide Holdings Inc. (NYSE:HLT), Marriott International Inc. (NASDAQ:MAR), and Hyatt Hotels Corporation (NYSE:H).

Unlocking the Potential of Leisure Travel in Africa: An Overview

According to Bloomberg, major hotel chains like Hilton Worldwide Holdings Inc. (NYSE:HLT) and Marriott International Inc. (NASDAQ:MAR) are in the process of doubling their footprint across the friendliest countries in Africa in a bid to capitalize on the current tourism boom and the enormous potential of the continent’s tourism economy. After inaugurating the JW Marriott Masai Mara Lodge in Kenya with rooms averaging more than $3,000 a night, Marriott International Inc. (NASDAQ:MAR) has more than 138 hotels under development across Africa as of April 2024, while Hilton Worldwide Holdings Inc. (NYSE:HLT) has more than 72 projects in the pipeline. Hyatt Hotels Corporation (NYSE:H) is currently in the process of investing in eleven properties across the region. All in all, the total number of hotel rooms operated in some of the best African countries to live in by major non-African players like Hilton Worldwide Holdings Inc. (NYSE:HLT) and Marriott International Inc. (NASDAQ:MAR), and Hyatt Hotels Corporation (NYSE:H) is projected to skyrocket by more than 75% to 175,346 within the next decade. Of this number, more than three-quarters are expected to comprise upscale, upper upscale, or luxury properties.

The uptick in leisure travel, not only in some of the friendliest countries in Africa but also globally, can be gauged by the performance of ETFs like Defiance Hotel Airline and Cruise ETF (NYSE:CRUZ), which mirrors the performance before expense of the BlueStar Global Hotels, Airlines, and Cruises Index, a weighted index of companies primarily engaged in the passenger airline, hotel and cruise industries. The ETF has more than 63 holdings as of April 20 and includes leisure travel stocks like Hilton Worldwide Holdings Inc. (NYSE:HLT) and Marriott International Inc. (NASDAQ:MAR). As of April 20, the ETF is up by 18.32% in the past one year and boasts an expense ratio of 0.45%. Another ETF which provides an accurate gauge to understand the surge in leisure travel is AdvisorShares Hotel ETF (NYSE:BEDZ), which is one of the only actively managed ETFs investing primarily in the global hotel and travel industries. As of April 20, the ETF has more than $3.94 million worth of assets under management and in the last five years, is up by more than 11.02%. The ETF invests at least 80% of its net assets in securities of companies which  derive at least 50% of their net revenue from the hotel business like Marriott International Inc. (NASDAQ:MAR) and MGM Resorts International (NYSE:MGM).

Friendliest Countries in Africa alarico/Shutterstock.com

This surge in investor interest in some of the friendliest countries in Africa is primarily owing to the uptick in international visitation post the COVID-19 pandemic. Google searches for African safaris has more than doubled in 2023 compared to 2022. In Uganda for instance, international visitor arrival jumped more than 57% in 2023, driving earnings to $985 million. In 2024, revenue is expected to reach 2019 levels. Secondly, the African leisure travel segment has paid special attention in meeting the sustainability objectives of the consumer. According to McKinsey, global tourism accounts more than 11% of the world’s carbon footprint and more than 60% of tourists have cited sustainability concerns as primary when opting for travel locations. African tourism providers have started to adapt accordingly, with safaris now being conducted with fewer vehicles and more pedestrianization. Furthermore, as covered in our article on 15 States With the Most Beautiful Beaches in the US, Hilton Worldwide Holdings Inc. (NYSE:HLT) global Travel With Purpose strategy aims to reduce the operational environmental footprint of the company’s hotels globally, enabling visitors to travel more sustainably and leading the way to a net-zero future for travel.

 

Our Methodology

To compile our list of the 15 Friendliest Countries in Africa,  we decided to undertake a consensus-based approach using a diverse variety of credible sources like travel blogs, news articles and Reddit threads to ascertain the most popular tourist destinations in Africa. We then shortlisted more than 30 countries which appeared most frequently during our research. Since friendliness is an incredibly multifaceted and complex phenomenon, we established a three-pronged criteria to measure the level of friendliness in each country using the index from our articles 30 Friendliest Countries in the World and 15 Friendliest Countries in Asia; the criteria is premised on the frequency of pleasant tourist interactions (15 points), cultural openness and diversity (10 points), and low incidents of scams and crime (5 points). We then proceeded to award each country a cumulative score according to the aforementioned criteria and selected 15 countries which scored the highest points. Subsequently, we ranked each entry based on the total points scored, from lowest to highest. Where there was a tie, we broke it based on the frequency of pleasant tourist interactions.

By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.

For ease of travel, you may also want to check out our coverage on the Top 15 English Speaking Countries in Africa.

15 Friendliest Countries in Africa

15. Zimbabwe

Insider Monkey’s Score: 13

English is the lingua franca of Zimbabwe and approximately 89% of the country’s population can speak English fluently. African and English are the two most common languages spoken in the country. This makes it easier for tourists to communicate with the locals and explore the country conveniently. 

14. Swaziland

Insider Monkey’s Score: 14

Being one of the safest countries in Africa, Swaziland welcomes many tourists every year. In 2023, around 0.76 million people visited Swaziland. Violent crimes are not common in Swaziland, which is why many tourists feel safe traveling across the country. Being friendly and warm to tourists is embedded in their culture. 

13. Ethiopia

Insider Monkey’s Score: 14

The transportation system is highly efficient in Ethiopia and is mainly dependent on the public sector. There are many forms of intercity public transport in Ethiopia, including trains and buses. The buses in the country include luxury buses, ordinary buses, and minibuses, providing tourists with a wide range of options to choose from. 

12. Rwanda

Insider Monkey’s Score: 15

Home to many volcanoes, mountains, lakes, and rainforests, Rwanda is  one of the most popular tourist destinations in Africa. The locals in Rwanda are known to be extremely friendly and hospitable towards the tourists. Rwandan people are known to make extra efforts to make tourists feel safe and at home. 

11. Kenya

Insider Monkey’s Score: 16

Kenya is one of the friendliest countries in Africa. It offers the cultural heritage of its locals, who are known for their height, beauty, and diversity. Kenya does not have a single prominent culture that the locals identify with, instead it is a mix of different cultures. This enables them to be open to new and different cultures. 

10. Morocco

Insider Monkey’s Score: 16

It is extremely easy and convenient for tourists to communicate in Morocco. There are many languages spoken in Morocco, including Arabic, French, and English. This makes it easier for tourists from different countries to visit Morocco and communicate with locals.

9. Zambia

Insider Monkey’s Score: 17

The culture in Zambia is extremely fluid. The locals in the country always welcome new cultures and traditions when exposed to new and diverse groups. The population of Zambia itself  is made up of approximately 60 to 70 tribal groups. Thus, the Zambians are open to cultural and ethnic diversity, making Zambia one of the friendliest countries in Africa. 

8. Madagascar

Insider Monkey’s Score: 19

Known for its welcoming and warm locals, Madagascar is one of the most popular tourist destinations in Africa. The locals in Madagascar are known to be always ready to help tourists. Many tourists believe Madagascar to be a safe and hospitable island. 

7. The Gambia

Insider Monkey’s Score: 20

River Gambia takes up most of the area in The Gambia. Thus, the tourist infrastructure is built in a way where visitors can conveniently take boat rides to visit and explore the country, making The Gambia one of the friendliest countries in Africa. Yellow and green taxis are also an extremely popular way to travel around the country. Green taxis are specifically for tourists. 

6. Ghana

Insider Monkey’s Score: 22

The locals in Ghana are widely known for their politeness, thus, they are extremely welcoming towards all tourists. Ghanaians are perceived to be extremely warm and hospitable people. Treating their visitors with good manners and warmth is embedded into their culture. 

 

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Disclosure: None. 15 Friendliest Countries in Africa is originally published on Insider Monkey.

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