Reforms in Africa, 2008-09

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Angola

Angola made it easier to pay taxes by introducing mandatory electronic filing of social security for businesses with more than 20 employees. The land registry was digitized and split into two units - each covering half the land in Luanda - accelerating procedures needed to transfer property. Trade across borders was expedited with a customs improvement program that streamlined procedures and lowered trade times and costs.

Areas of Reform: Registering property, Paying taxes, Trading across borders
Rank in Doing Business 2010: 169

Benin

Benin cut the corporate income tax rate from 38 percent to 30 percent and reduced the cost of employment by cutting the payroll tax from 8 percent to 4 percent. Implementation of an electronic document system has improved the time needed to clear goods at customs.

Areas of Reform: Paying taxes, Trading across borders
Rank in Doing Business 2010: 172

Botswana

Botswana eased business start-up by making tax registration more efficient and streamlining the process for obtaining a business license. Introduction of case management and improved use of information technology has contributed to more efficient resolution of commercial disputes. But property registration was made more difficult by requiring that the tax agency be notified of valued added tax payments.

Areas of Reform: Starting a business, Enforcing contracts, Registering property (making it more difficult)
Rank in Doing Business 2010: 45

Burkina Faso

Burkina Faso eased the process for construction permits by establishing a one-stop shop in Ouagadougou. Contract enforcement was improved by lowering fees and introducing alternative dispute resolution mechanisms. Property registration was streamlined by allowing transfer taxes to be paid at the land registry. In addition, new regulations reorganized the land registry and set time limits for procedures. Property valuation by government officials after inspections was simplified by using tables of values for properties based on the materials used. Business start-up was eased by allowing publication to be done directly on the Web site of the one-stop shop, reducing the registration cost, and streamlining tax registration. The creation of a one-stop shop for commercial trade documents has expedited trade across borders.

Areas of Reform: Starting a business, Dealing with construction permits, Registering property, Enforcing contracts, Trading across borders
Rank in Doing Business 2010: 147

Burundi

In Burundi, no major reform was recorded.

Rank in Doing Business 2010: 176

Cameroon

Cameroon eliminated the business license tax for new businesses for their first two years. Improvements at the Douala port and implementation of a cargo tracking system and scanners shortened import and export times and improved the security of goods transiting within Cameroon.

Areas of Reform: Starting a business, Paying taxes, Trading across borders
Rank in Doing Business 2010: 171

Cape Verde

Cape Verde improved access to credit information by introducing online access for providers and retrievers of information. At the same time, the government raised the minimum threshold for loans included in the database from CVE 1,000 to CVE 5,000 for individuals. The corporate income tax rate was cut from 30 percent to 25 percent. Business start-up was eased by implementing an online company registration system.

Areas of Reform: Starting a business, Getting credit (information) (making it more difficult), Paying taxes
Rank in Doing Business 2010: 146

The Central African Republic

The Central African Republic simplified business start-up by establishing a one-stop shop that merged four procedures into one.

Areas of Reform: Starting a business
Rank in Doing Business 2010: 183

Chad

In Chad, no major reform was recorded.

Rank in Doing Business 2010: 178

Comoros

In Comoros, no major reform was recorded.

Rank in Doing Business 2010: 162

Democratic Republic of Congo

In the Democratic Republic of Congo, participation by private companies in terminal handling at the port of Matadi has improved services, reducing the time taken to handle cargo. The sales tax was raised from 13 percent to 15 percent.

Areas of Reform: Trading across borders, Paying taxes (making it more difficult)
Rank in Doing Business 2010: 182

Republic of Congo

In the Republic of Congo, no major reform was recorded.

Rank in Doing Business 2010: 179

Côte d’Ivoire

In Côte d’Ivoire, no major reform was recorded.

Rank in Doing Business 2010: 168

Equatorial Guinea

In Equatorial Guinea, no major reform was recorded.

Rank in Doing Business 2010: 170

Eritrea

In Eritrea, no major reform was recorded.

Rank in Doing Business 2010: 175

Ethiopia

Ethiopia reduced court delays through a combination of better case management and internal training, as well as an expanded role for enforcement judges. The government has simplified property transfers by decentralizing administrative tasks to sub-cities and merging procedures performed by the land registry and municipalities. Reforms at the company registry and the streamlining of procedures have made it easier to start a business.

Areas of Reform: Starting a business, Registering property, Enforcing contracts
Rank in Doing Business 2010: 107

Gabon

In Gabon, no major reform was recorded.

Rank in Doing Business 2010: 158

The Gambia

In The Gambia, no major reform was recorded.

Rank in Doing Business 2010: 140

Ghana

Ghana simplified business start-up by further streamlining registration procedures through the creation of a customer service desk at the one-stop shop.

Areas of Reform: Starting a business
Rank in Doing Business 2010: 92

Guinea

In Guinea, no major reform was recorded.

Rank in Doing Business 2010: 173

Guinea-Bissau

In Guinea-Bissau, business start-up was simplified by making company name searches electronic, introducing computers and flash drives, and lowering registration fees.

Areas of Reform: Starting a business
Rank in Doing Business 2010: 181

Kenya

Kenya increased the cost of getting construction permits. Access to credit was improved by implementing a law on credit bureaus that will provide a framework for a regulated, reliable system of sharing credit information.

Areas of Reform: Dealing with construction permits (making it more difficult), Getting credit (information)
Rank in Doing Business 2010: 95

Lesotho

In Lesotho, no major reform was recorded.

Rank in Doing Business 2010: 130

Liberia

Liberia eased the process for getting construction permits by lowering the permit fee and cost of obtaining a power generator, abolishing the requirement to obtain a tax waiver certificate before submitting documents to obtain a building permit, and making fixed telephone connections more readily available for public use with the reopening of the national phone company. Business start-up was eased by removing the need to obtain an environmental impact assessment when forming a general trading company. The trade process was expedited by creating a one-stop shop bringing together various ministries and agencies, and streamlining the inspection regime.

Areas of Reform: Starting a business, Dealing with construction permits, Trading across borders
Rank in Doing Business 2010: 149

Madagascar

Madagascar made it more costly to transfer a property by making use of a notary mandatory for property transactions. Business start-up was simplified by streamlining procedures at the one-stop shop and eliminating the stamp duty and minimum capital requirement.

Areas of Reform: Starting a business, Registering property (making it more difficult)
Rank in Doing Business 2010: 134

Malawi

Malawi introduced a law limiting liquidator fees during insolvency procedures. Implementation of a risk-based inspection regime and a post-destination clearance program for preapproved traders has shortened the time for clearing goods.

Areas of Reform: Closing a business, Trading across borders
Rank in Doing Business 2010: 132

Mali

Mali shortened the time for delivering water connections by 30 days. Amendments to the civil procedures code improved contract enforcement by introducing case time limits and allowing summons to be served upon filing without a judge’s intervention. Investor protections were strengthened with an amendment to the civil procedures code that increased shareholder access to corporate information during trial. Business start-up was simplified by creating a new one-stop shop making it possible to register a company with the registrar and tax agency, apply for online publication, and obtain a national identification number. Implementation of an electronic data interchange (EDI) system, improvements in the terminals used by Malian traders, and streamlining of required documentation have reduced trade times.

Areas of Reform: Dealing with construction permits, Enforcing contracts, Protecting investors, Starting a business, Trading across borders
Rank in Doing Business 2010: 156

Mauritania

In Mauritania, no major reform was recorded.

Rank in Doing Business 2010: 166

Mauritius

Mauritius made employing workers easier with more flexible redundancy procedures, removing the requirement for authorization to dismiss one or a group of workers and lowering dismissal costs. A new insolvency law introduced a rehabilitation procedure for companies as an alternative to winding up and defines the rights and obligations of creditors and debtors—as well as sanctions for those who abuse the system. A specialized commercial division of the supreme court was created, improving contract enforcement. Access to credit information was strengthened by allowing the licensing of private credit information bureaus and expanding the bureaus’ coverage to all credit facilities. Property registration was made easier by setting a limit of 15 days to obtain final property titles from the land registry. The introduction of electronic submissions of customs declarations and bills of lading has expedited trade.

Areas of Reform: Employing workers, Registering property, Getting credit (information), Trading across borders, Closing a business, Enforcing contracts
Rank in Doing Business 2010: 17

Mozambique

Mozambique simplified business start-up by eliminating requirements for minimum capital and bank deposits. Administrative improvements in customs have helped reduce the time required to clear traded goods.

Areas of Reform: Trading across borders, Starting a business
Rank in Doing Business 2010: 135

Namibia

In Namibia, no major reform was recorded.

Rank in Doing Business 2010: 66

Niger

Niger simplified business start-up by eliminating the procedures for registering with the Centre Nationale des Utilisateurs du Transports (National Center for Transportation Users) and the Chamber of Commerce.

Areas of Reform: Starting a business
Rank in Doing Business 2010: 174

Nigeria

Nigeria’s central bank issued a guideline in October 2008 defining the licensing, operational, and regulatory requirements for a private credit bureau.

Areas of Reform: Getting credit (information)
Rank in Doing Business 2010: 125

Rwanda

Rwanda improved the process for dealing with distressed companies with a new law aimed at streamlining reorganization. Employing workers was made easier by abolishing the maximum duration for fixed-term contracts and allowing unlimited renewals of such contracts, as well as by allowing redundancy procedures to be more flexible, with consultation and notification of third parties no longer required. Getting credit was made easier with a new secured transactions act and insolvency act to make secured lending more flexible, allowing a wider range of assets to be used as collateral and a general description of debts and obligations. In addition, out-of-court enforcement of collateral has become available to secured creditors, who also now have top priority within bankruptcy. A new company law has strengthened investor protections by requiring greater corporate disclosure, director liability, and shareholder access to information. Property registration was simplified by decreasing the number of days required to transfer a property. Business start-up was eased by eliminating a notarization requirement; introducing standardized memorandums of association; enabling online publication; consolidating name checking, registration fee payment, tax registration, and company registration procedures; and shortening the time required to process completed applications. By implementing administrative changes - such as increased operating hours and enhanced cooperation at the border, along with the removal of some documentation requirements for importers and exporters - Rwanda has improved trading times.

Areas of Reform: Closing a business, Employing workers, Getting credit (legal rights), Protecting investors, Registering property, Starting a business, Trading across borders
Rank in Doing Business 2010: 67

São Tomé and Principe

In São Tomé and Principe, no major reform was recorded.

Rank in Doing Business 2010: 180

Senegal

Senegal improved processes at the container terminal, shortening the time required to move containers from the port of Dakar. Trade has also been facilitated by improvements to the computerized customs system (GAINDE) and the expansion of the number of agencies included in the network.

Areas of Reform: Trading across borders
Rank in Doing Business 2010: 157

Seychelles

In the Seychelles, no major reform was recorded.

Rank in Doing Business 2010: 111

Sierra Leone

Sierra Leone eased the insolvency process with a new company act that provides provisions for reorganization and administration that are encouraging ailing businesses to first try to reorganize instead of going straight to liquidation. The act also makes it easier for companies to get credit by providing for the use of fixed and floating charges over company assets. In addition, it has become easier to pay taxes because of better training and equipment at the tax authority, a consolidated income tax act, and a new value added tax that replaces four sales taxes. Investor protections have been strengthened under a new company law that enhanced director liability and improved disclosure requirements. Reinstatement of a moratorium on the authorization of property transfers has delayed property transfers. Business start-up has been eased with the establishment of a one-stop shop for business registration. Despite successful efforts to reduce the time to trade in Sierra Leone, some fees were increased, making trading across borders more costly.

Areas of Reform: Closing a business, Paying taxes, Getting credit (legal rights), Protecting investors, Starting a business, Registering property (making it more difficult), Trading across borders (making it more difficult)
Rank in Doing Business 2010: 148

South Africa

South Africa eased the tax burden on businesses by abolishing the stamp duty.

Areas of Reform: Paying taxes
Rank in Doing Business 2010: 34

Sudan

Sudan reduced the corporate income tax rate by an average of 15 percentage points and the capital gains tax by 5 percentage points, while the tax on labor has been abolished. Trade has been expedited with improved customs clearance and the electronic connection of 10 customs offices—enabling traders to file declarations remotely—and the addition of two scanners at the port of Sudan.

Areas of Reform: Paying taxes, Trading across borders
Rank in Doing Business 2010: 154

Swaziland

In Swaziland, no major reform was recorded.

Rank in Doing Business 2010: 115

Tanzania

Tanzania made it harder to obtain construction permits, adding additional procedures and costs.

Areas of Reform: Dealing with construction permits (making it more difficult)
Rank in Doing Business 2010: 131

Togo

Togo cut the corporate income tax rate from 37 percent to 30 percent. Business start-up was eased by setting up a one-stop shop that eliminated six procedures and lowered costs by almost a fifth.

Areas of Reform: Starting a business, Paying taxes
Rank in Doing Business 2010: 165

Uganda

Uganda sped up trading times through better customs processes, increased operating hours at the port of Mombasa, and improved cooperation at the border.

Areas of Reform: Trading across borders
Rank in Doing Business 2010: 112

Zambia

Zambia improved access to credit information by making it mandatory for banks and nonbank financial institutions registered with the Bank of Zambia to use credit reference reports and provide data to the credit bureau.

Areas of Reform: Getting credit (information)
Rank in Doing Business 2010: 90

Zimbabwe

Zimbabwe lowered the cost of transferring a property by 15 percent of the value of the property.

Areas of Reform: Registering property
Rank in Doing Business 2010: 159