Reforms of regulation are making it easier to do business worldwide, including in Africa, a region where the private sector faces some of its biggest challenges, states the World Bank online, Wednesday.
The World Bank and IFC, just released their fourth yearly Doing Business report.
This year’s report, Doing Business 2007: How to Reform, identifies top reformers of business regulations and describes best practices in how to reform. It measures quantitative indicators on business regulations and compares their enforcement across 175 economies—from Afghanistan to Zimbabwe—as well as over time. This year the report ranks Singapore first on the ease of doing business. New Zealand moved to second place after two years at the top spot.
A year ago, World Bank Group Vice President Michael Klein, whose joint IFC-World Bank team produces the Doing Business report, noted that Sub-Saharan Africa had the most complicated business environment and had made the least effort to reform.
But this year, Africa moves up to third place among regions, and two-thirds of its countries have made at least one regulatory reform.
Ghana and Tanzania are now among the top 10 reformers worldwide.
Rwanda, for example, recently eliminated a colonial-era law that allowed only one notary for the entire country. Already some 36 notaries are working throughout the country, greatly reducing the time needed to start a business.
Noting this positive development, Klein said, “This progress is sorely needed. Africa will benefit greatly from new enterprises and formal sector jobs, gains that will come with more business-friendly regulations.”
Many governments now compete to improve their rankings on the ease of doing business. Georgia, for example, has used the Doing Business indicators as benchmarks for its progress, and it emerged this year as the top reformer worldwide. Even within countries, there has been an effect—recent comparisons among cities in India and Mexico have created fierce competition for the best regulatory environment to attract investors. Mayors are working hard to explain why it takes longer or costs more to start a business in their city than in others in the same country.
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