Ease of doing business in Africa hits new record

Economies in Sub Saharan Africa set a new record for a third consecutive year, carrying out 107 reforms in the past 12 months to improve the ease of doing business for domestic small and medium-sized enterprises. The World Bank Group’s Doing Business 2019: Training for Reform report finds that the latest reforms were a significant increase from the 83 reforms that were implemented in the region the previous year. In addition, this year also saw the highest number of economies carrying out reforms, with 40 of the region’s 48 economies implementing at least one reform, compared to the previous high of 37 economies two years ago. Four of the region’s economies have earned coveted spots in this year’s global top improvers: Togo, Kenya, Ivory Coast and Rwanda. Also, Mauritius regained a spot in the world’s top-ranked economies, in 20th place. Five reforms were carried out in Mauritius during the past year, including the elimination of a sole gender-based barrier. In the area of starting a business, Mauritius equalised the business registration process for men and women, and further consolidated the registration process for all applicants. Minority investor protections were strengthened by clarifying ownership and control structures and introducing greater corporate transparency. Reforms were also carried out in the areas of registering property, trading across borders and paying taxes. Rwanda carried out the most reforms in the region in the past year, with seven, and moved up to 29th globally. The latest improvements in Rwanda, which has carried out the most reforms since the inception of the Doing Business Report 16 years ago, included making starting a business less costly by replacing electronic billing machines with free software for value-added tax invoices. In registering property, an area in which Rwanda is second only to New Zealand in the world, new land-dispute resolution mechanisms made property registration easier. A new insolvency law strengthened access to credit, another area in which Rwanda excels, and made it easier to resolve insolvencies by making insolvency proceedings more accessible for creditors and granting them greater participation in the proceedings. Other reforms in Rwanda were in the areas of trading across borders and implementing electricity. Kenya implemented five reforms, advancing to 61st in the global rankings. One reform included the introduction of a new law that helped further strengthen access to credit. This latest reform catapulted Kenya to eighth in the world in the area of getting credit. Kenya also made it easier for businesses to pay taxes by consolidating permits and using the country’s iTax platform, while an online system helped make property registration easier. Other improvements strengthened minority investor protections and made it easier to resolve insolvencies. Notable reforms in Ivory Coast and Togo included the introduction of online systems for filing corporate income tax and value-added tax returns, making it easier for businesses to pay their taxes. In Ivory Coast, which carried out five reforms, access to credit and construction quality controls were also strengthened and business registration and enforcing contracts were made easier. In Togo, which carried out six reforms, business registration was made easier with a reduction of the minimum capital requirement, and enforcing contracts was made easier with the adoption of a new law on mediation, among other reforms.

Ease of doing business in Africa hits new record

Want to read this article?

Read Next

Hong Kong and Shanghai to cooperate on captives and ILS

Supply chain cyber risk concentrated in 15 top vendors with ‘below average’ cybersecurity

Four in five non-EU companies to align with CSRD

Swerma to focus on AI and ESG in 2024

Hong Kong and Shanghai to cooperate on captives and ILS

Supply chain cyber risk concentrated in 15 top vendors with ‘below average’ cybersecurity

Four in five non-EU companies to align with CSRD

Swerma to focus on AI and ESG in 2024

Climate shifts – is your business continuity plan ready?

Want to read this article?

Read Next

Hong Kong and Shanghai to cooperate on captives and ILS

Supply chain cyber risk concentrated in 15 top vendors with ‘below average’ cybersecurity

Four in five non-EU companies to align with CSRD

Swerma to focus on AI and ESG in 2024

Climate shifts – is your business continuity plan ready?

Related Articles