Skip to main content

Sub-Saharan Africa economies among world’s top Improvers of Business Climate- Report


Sub-Saharan Africa economies continue to implement reforms to improve the business climate for domestic entrepreneurs, with members of the Organization for the Harmonization of Business Law in Africa (OHADA) particularly active during the past year, says the World Bank Group’s annual ease of doing business measurement.

Measuring Regulatory Quality and Efficiency, released today, records a total of 69 reforms in 35 economies in Sub-Saharan Africa. Of these, 14 of OHADA’s 17 member countries implemented 29 reforms.

The reforms implemented in Sub-Saharan Africa accounted for about 30 percent of the 231 reforms implemented worldwide during the past year. The region also boasted half of the world’s top 10 improvers, i.e. countries that implemented at least three reforms and moved up on the global rankings scale, with Uganda, Kenya, Mauritania, Benin and Senegal.

The region stood out in implementing reforms under the Getting Credit indicator. Of the 32 reforms made globally, 14 were carried out in Sub-Saharan Africa, with Kenya and Uganda making significant progress.

“Despite great improvements, governments in Sub-Saharan Africa will need to continue working on closing the gap in many key areas that impact the ease of doing business, especially increasing access to reliable electricity and providing effective commercial dispute resolution – two areas where the region scores the lowest globally,” said Rita Ramalho, Manager of the Doing Business project.

On Getting Electricity, it takes an average of 130 days for an entrepreneur to get a new electricity connection and, once connected, customers experience frequent outages lasting almost 700 hours per year – making Sub-Saharan Africa the region with the highest duration of outages globally.

The region also ranks poorly in the areas of Trading Across Borders and Registering Property.

Mauritius ranks best in the region, with a global ranking of 32, performing particularly well in the areas of Paying Taxes and Enforcing Contracts. In Mauritius, it takes only 152 hours for entrepreneurs to pay taxes, compared to 261 hours globally.

Rwanda has the next best ranking in the region, with a global ranking of 62. Rwanda also implemented the highest number of reforms in the region, with six reforms carried out in the past year. The country ranks second in the world on the Getting Credit indicator and 12th in the world on the Registering Property indicator. Ten years ago, an entrepreneur in Rwanda took 370 days to transfer property. Now, it takes 32 days which is less than in Germany.

Botswana, with a global ranking of 72, South Africa (73), and Seychelles (95) are also among the better ranked economies in Sub-Saharan Africa.

However, Kenya and Uganda experienced significant increases in their rankings, with Kenya moving up to 108 this year, followed by Uganda, which has moved up to 122. These improvements are primarily due to four reforms Kenya implemented in the areas of Starting a Business, Getting Electricity, Registering Property, and Getting Credit, while Uganda implemented reforms in the areas of Starting a Business, Getting Electricity and Getting Credit.

This year’s report unveils a two-year effort to significantly expand the benchmarks used to measure the efficiency of business regulation, including the time and cost of complying with government regulations, to now include more measurements of the quality of regulation, to better reflect the reality of business operations on the ground.

On the five indicators that saw changes in this report – Dealing with Construction Permits, Getting Electricity, Enforcing Contracts, Registering Property and Trading Across Borders – Sub-Saharan Africa obtained lower scores than the global average. The region’s economies have room for improvement in the reliability of supply and transparency index of the getting electricity indicator and the quality of land administration index of the registering property indicator. For instance, Uganda does not have an electronic database to check for encumbrances or a geographic information system. Also, the cadastre and land registry do not have complete coverage of the country’s privately owned land.

Comments

Popular posts from this blog

PFM Act to guide local government authority borrowing

By: Fred Yaw Sarpong
The bill, Public Financial Management (PFM) Act 921 which has been passed into law by Parliament is to guide public institutions especially the local government authority borrowing. The law was pass on 3rdAugust, 2016
According to the law, local government authority, a public corporation or state-owned enterprise is liable for the debt and other obligations without recourse to Government, unless otherwise explicitly guaranteed by Government in accordance with this Act.
Madam Eva Esselba Mends, the Chief Economic Officer and Group Head of PFM at the Ministry of Finance told the Daily Express that the law involves a lot but it also give instruction to how state institutions can borrow especially with the  local government authority.
She mentioned that there is no specific law in place that gives direction as to what local authority can do when it comes to borrowing by the authority. Other public corporations sometimes borrow with huge amount for their operation but loca…

Vodafone fined a record £4.6 million for IT blunder

A top-up error left pay-as-you-go customers out of pocket and complaints were mishandled
Vodafone has been fined a record £4.6 million by the telecoms watchdog forleaving thousands of customers out of pocket in a disastrous IT blunder.
Ofcom found that the operator mishandled complaints and failed to pay into the accounts of more than 10,000 pay-as-you-go customers when they topped up their credit.
The top-up error, which cost customers £150,000 over 17 months in 2014 and 2015, stemmed from the moving of 28.5 million accounts to a new billing system.Errors in billing data and price plans caused so much protest that it made Vodafone the most complained-about mobile network in Britain.The technical issues were resolved by April 2015 and all accounts are now on the new system, Vodafone said.
Lindsey Fussell, Ofcom’s consumer group director, said:“Vodafone’s failings were serious and unacceptable, and these fines send a clear warning to all telecoms companies.”
The company says that it has ref…

Enterprise Life inaugurates social centre for Kumasi SOS village

By: Fred Yaw Sarpong
Enterprise Life and Sanlam South Africa together with SOS Children’s Villages Ghana have jointly inaugurated a newly constructed social centre at the SOS Children’s Village, Kumasi in the Ashanti region.
The project, valued at GHc485,000.00 forms part of Enterprise Life and Sanlam-South Africa’s corporate social responsibility (CSR) to promote quality education and health for vulnerable children in Ghana.
The newly established social centre provides a suitable multi-purpose facility with a spacious auditorium among others to host different social activities related to child growth and development and will cater for both SOS children and students of the Hermann Gmeiner School.
The centre also offers the beneficiaries the opportunity to freely socialize and participate actively in educational oriented activities such as school concerts, art exhibitions and workshops.
The Executive Director of Enterprise Life, Mrs. Jacqueline Benyi expressed satisfaction that her outf…