According to new research by the Legatum Institute, which ranks prosperity in 38 African countries around criteria ranging from economics to education to health, diamond-rich Botswana tops the 2014 Africa Prosperity Report, but Rwanda was the best improver.

Rwanda gained five ranking places to end up as the eighth most prosperous country on the continent.

It was also found to have the sixth highest ranking in regulation and government effectiveness, the eighth highest score in rule of law and the lowest perceptions of corruption in Africa.

"Rwanda deserves credit for actively encouraging women to play a central role in shaping the future of their country. And it seems to be paying dividends,” says part of the report by the Legatum Institute, a public policy think-tank.

The 2014 Prosperity Index picks up some interesting trends with the changing economic situation having a clear impact on the rankings this year, notably the improvements of China, the US and New Zealand and the deterioration in the ranking of Venezuela.

The report however indicates that other factors are important for prosperity, such as entrepreneurship, health, security, freedom, and governance; poor performance in these areas has significantly affected the rankings of Russia, Venezuela, and Syria. A number of African countries, led by Sierra Leone, show up as particularly vulnerable on the health sub-index.

According to the report, six of the 10 most-improved countries in the Index are in sub-Saharan Africa: Zimbabwe, Ethiopia, Zambia, Uganda, Kenya and Rwanda.