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Africa: Doing Business 2011 Fact Sheet – Summary of Reforms in Sub-Saharan Africa

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Original Post Date: 2010-11-07 Time: 09:00:03  Posted By: News Poster

A fact sheet from the World Bank on business reforms across Africa:

Angola reduced the time for trading across borders by making investments in port infrastructure and administration.

Areas of business regulation reform: Trading across borders

Rank in Doing Business 2011: 163

Benin created a new municipal commission to streamline construction permitting and set up an ad hoc commission to deal with the backlog in permit applications.

Areas of business regulation reform: Dealing with construction permits

Rank in Doing Business 2011: 170

Botswana

Rank in Doing Business 2011: 52

Burkina Faso made dealing with construction permits easier by halving the cost of the soil survey and cutting by a third the time required to process a building permit application. The country reduced the statutory tax rate and the number of taxes for business and introduced simpler, uniform compliance procedures. It made trading easier by reducing documentation requirements for importers and exporters. And it eased contract enforcement by setting up a specialized commercial court and abolishing the fee to register judicial decisions.

Areas of business regulation reform: Dealing with construction permits, Paying taxes, Trading across borders, Enforcing contracts

Rank in Doing Business 2011: 151

Burundi made paying taxes simpler by replacing the transactions tax with a value added tax.

Areas of business regulation reform: Paying taxes

Rank in Doing Business 2011: 181

Cameroon made starting a business easier by establishing a new one-stop shop and abolishing the requirement for verifying business premises and its corresponding fees.

Areas of business regulation reform: Starting a business

Rank in Doing Business 2011: 168

Cape Verde made business start-up easier by eliminating the need for a municipal inspection before a business begins operations and computerizing the system for delivering the municipal license. It eased property registration by switching from fees based on a percentage of the property value to lower fixed rates. The country also abolished stamp duties on sales and checks.

Areas of business regulation reform: Starting a business, Registering property, Paying taxes

Rank in Doing Business 2011: 132

Central African Republic

Rank in Doing Business 2011: 182

Chad increased taxes on business through changes to its social security contribution rates.

Areas of business regulation reform: Paying taxes (making it more difficult)

Rank in Doing Business 2011: 183

Comoros

Rank in Doing Business 2011: 159

The Democratic Republic of Congo eased business start-up by eliminating procedures, including the company seal. Dealing with construction permits became easier thanks to a reduction in the cost of a building permit from 1 percent of the estimated construction cost to 0.6 percent and imposition of a time limit for issuing building permits. The property transfer tax was reduced by half, to 3 percent of the property value.

Areas of business regulation reform: Starting a business, Dealing with construction permits, Registering property

Rank in Doing Business 2011: 175

The Republic of Congo reduced its corporate income tax rate from 38 percent to 36 percent in 2010.

Areas of business regulation reform: Paying taxes

Rank in Doing Business 2011: 177

Côte d’Ivoire eased construction permitting by eliminating the need to obtain a preliminary approval.

Areas of business regulation reform: Dealing with construction permits

Rank in Doing Business 2011: 169

Equatorial Guinea

Rank in Doing Business 2011: 164

Eritrea

Rank in Doing Business 2011: 180

Ethiopia made trading easier by addressing internal bureaucratic inefficiencies.

Areas of business regulation reform: Trading across borders

Rank in Doing Business 2011: 104

Gabon

Rank in Doing Business 2011: 156

The Gambia

Rank in Doing Business 2011: 146

Ghana enhanced access to credit by establishing a centralized collateral registry and by granting an operating license to a private credit bureau that began operations in April 2010.

Areas of business regulation reform: Getting credit (credit information and legal rights)

Rank in Doing Business 2011: 67

Guinea increased the cost of obtaining a building permit.

Areas of business regulation reform: Dealing with construction permits (making it more difficult)

Rank in Doing Business 2011: 179

Guinea-Bissau established a specialized commercial court, speeding up the enforcement of contracts.

Areas of business regulation reform: Enforcing contracts

Rank in Doing Business 2011: 176

Kenya eased business start-up by reducing the time it takes to get the memorandum and articles of association stamped, merging the tax and value added tax registration procedures, and digitizing records at the registrar. It sped up trade by implementing an electronic cargo tracking system and linking that system to the Kenya Revenue Authority’s electronic data interchange system for customs clearance. Kenya increased the administrative burden of paying taxes by requiring quarterly filing of payroll taxes.

Areas of business regulation reform: Starting a business, Trading across borders, Paying taxes (making it more difficult)

Rank in Doing Business 2011: 98

Lesotho

Rank in Doing Business 2011: 138

Liberia

Rank in Doing Business 2011: 155

Madagascar continued to reduce corporate tax rates. In trade, a single-window system (GASYNET) improved communication and coordination between customs and the terminal port operators, reducing both the time and the cost to export and import.

Areas of business regulation reform: Paying taxes, Trading across borders

Rank in Doing Business 2011: 140

Malawi eased property transfers by cutting in half the waiting times for consents and registration of legal instruments. It simplified the enforcement of contracts by raising the ceiling for commercial claims that can be brought to the magistrates’ courts.

Areas of business regulation reform: Registering property, Enforcing contracts

Rank in Doing Business 2011: 133

Mali eased construction permitting by implementing a simplified environmental impact assessment for noncomplex commercial buildings. It made property transfers easier by reducing the property transfer tax for firms from 15 percent of the property value to 7 percent. The elimination of redundant inspections of imported goods reduced the time for trading across borders.

Areas of business regulation reform: Dealing with construction permits, Registering property, Trading across borders

Rank in Doing Business 2011: 153

Mauritania

Rank in Doing Business 2011: 165

Mauritius made the resolution of commercial disputes faster by recruiting more judges and adding more courtrooms. But it also introduced a new corporate social responsibility tax.

Areas of business regulation reform: Enforcing contracts, Paying taxes (making it more difficult)

Rank in Doing Business 2011: 20

Mozambique eased business start-up by introducing a simplified licensing process.

Areas of business regulation reform: Starting a business

Rank in Doing Business 2011: 126

Namibia

Rank in Doing Business 2011: 69

Niger reduced its corporate income tax rate.

Areas of business regulation reform: Paying taxes

Rank in Doing Business 2011: 173

Nigeria

Rank in Doing Business 2011: 137

Rwanda made dealing with construction permits easier by passing new building regulations at the end of April 2010 and implementing new time limits for the issuance of various permits. Borrowers now have the right to inspect their own credit report, and loans of all sizes are required to be reported to the central bank’s public credit registry, enhancing access to credit. The trade logistics environment improved thanks to a reduction in the number of trade documents required and efforts to enhance joint border management procedures with Uganda and other neighbors.

Areas of business regulation reform: Dealing with construction permits, Getting credit (credit information), Trading across borders

Rank in Doing Business 2011: 58

São Tomé and Príncipe made starting a business more difficult by introducing a minimum capital requirement for limited liability companies. But it reduced the corporate income tax rate to a standard 25 percent.

Areas of business regulation reform: Starting a business (making it more difficult), Paying taxes

Rank in Doing Business 2011: 178

Senegal

Rank in Doing Business 2011: 152

The Seychelles removed the tax-free threshold limit and lowered corporate income tax rates.

Areas of business regulation reform: Paying taxes

Rank in Doing Business 2011: 95

Sierra Leone made dealing with construction permits easier by streamlining the issuance of location clearances and building permits. It also lifted a moratorium on sales of privately owned properties. Sales and service taxes were replaced with a goods and service tax.

Areas of business regulation reform: Dealing with construction permits, Registering property, Paying taxes

Rank in Doing Business 2011: 143

South Africa

Rank in Doing Business 2011: 34

Sudan

Rank in Doing Business 2011: 154

Swaziland strengthened investor protections by requiring greater corporate disclosure, higher standards of accountability for company directors, and greater access to corporate information for minority investors. The implementation of an electronic data interchange system for customs at the border posts reduced the time required for importing.

Areas of business regulation reform: Protecting investors, Trading across borders

Rank in Doing Business 2011: 118

Tanzania

Rank in Doing Business 2011: 128

Togo

Rank in Doing Business 2011: 160

Uganda made it more difficult to start a business by increasing trade licensing fees. But it enhanced access to credit by establishing a new private credit bureau. The efficiency of the court system continues to be improved, greatly reducing the time required to file and serve a claim.

Areas of business regulation reform: Starting a business (making it more difficult), Getting credit (credit information), Enforcing contracts

Rank in Doing Business 2011: 122

Zambia eased business start-up by eliminating the minimum capital requirement. And it made trade easier by implementing a one-stop border post with Zimbabwe, launching web-based submission of customs declarations, and introducing scanning machines at border posts. The introduction of an electronic case management system in the courts improved contract enforcement. The system provides electronic referencing of cases, a database of laws, real-time court reporting, and public access to court records.

Areas of business regulation reform: Starting a business, Trading across borders, Enforcing contracts

Rank in Doing Business 2011: 76

Zimbabwe eased business start-up by reducing registration fees and speeding up the name search process and company and tax registration. In addition, it reduced the corporate income tax rate from 30 percent to 25 percent, lowered the capital gains tax from 20 percent to 5 percent, and simplified the payment of corporate income tax by allowing quarterly payment through commercial banks.

Areas of business regulation reform: Starting a business, Paying taxes

Rank in Doing Business 2011: 157

Original date published: 5 November 2010

Source: http://allafrica.com/stories/201011051075.html?viewall=1