Key Takeaways
- Governments are competing for capital, signaling faster reform and easier market access.
- Citizenship programs often precede business-friendly regulation and streamlined investment processes.
- Early entrepreneurs benefit most when states begin acting like market players.
Africa is stepping into the “golden passport” arena, with nations such as Botswana and Egypt introducing citizenship-by-investment programs to attract wealthy foreigners. However, if you are not seeking a second passport, you may assume that this trend does not affect you.
In reality, the rise of these programs signals a broader and more significant development for founders and investors: African governments are beginning to compete for capital, much like startups compete for customers. They are packaging their most valuable assets, reducing barriers, experimenting with pricing and working to attract interest in their products.
Essentially, the state is starting to function like a market player, and this shift could redefine the emergence of the next wave of business opportunities.
Botswana exemplifies this trend in Africa. Its decision to launch a CBI program is not about creating a luxury product; it is a response to an economic shift. Diamond revenue, historically the backbone of the economy, is declining as lab-grown alternatives become increasingly popular. To fill this gap, the government is marketing stability, governance and predictable regulation, which investors value. When a country begins offering these through citizenship, it is also preparing to provide them through faster licensing, clearer investment rules and enhanced institutional support for businesses to attract foreign investors.
Egypt’s trajectory follows a similar rationale. Amid a foreign currency shortage and significant IMF pressure, the government expedited citizenship pathways linked to proper
