SA climbs ease of business rankings
11 September 2008
South Africa climbed from 35th to 32nd place in the World Bank and International Finance Corporation's Doing Business 2009, an annual survey of the time, cost and hassle involving in doing business in 181 countries around the world.
The survey tracks indicators of the time and cost involved in meeting government requirements in business start-up, operation, trade, taxation, and closure. Not measured are variables such as macroeconomic policy, quality of infrastructure, currency volatility and investor perceptions.
Paying taxes, starting a business
South Africa's move up the rankings was thanks to big jumps in the sub-categories of paying taxes (up from 65th to 23rd place) and starting a business (57th to 47th place).
"In South Africa, entrepreneurs starting a business no longer have to obtain legal assistance or have their incorporation documents notarized, thanks to amendments to the Corporate Act," the report states. "These amendments also allow electronic submission of documents and publication, easing business start-up.
"In addition, the government reduced the tax burden by eliminating the regional establishment levy and regional services levy."
South Africa is also a strong performer when it comes to getting credit (2nd overall) and protecting investors (9th overall), but weak when it comes to ease of employing workers (102nd) and trading across borders (147th).
-
Doing Business 2009: full South Africa summary
Record reform year for Africa
According to the survey, Africa had a record year for regulatory reforms that make it easier to do business, with 28 African countries completing 58 reforms and four countries - Senegal, Burkina Faso, Botswana and Egypt - placed in the top 10 regulatory reformers.
Mauritius was the continent's top performer for the year, moving up to 24 on the overall rankings, with South Africa the second most business-friendly African country at 32, followed by Botswana at 38.
Singapore still top
Singapore maintained its position as the overall top-ranked economy for the third year running, with New Zealand, the US, Hong Kong and Denmark completing the top five and the United Kingdom, Ireland, Canada, Australia and Norway completing the top 10.
"Economies need rules that are efficient, easy to use, and accessible to all who have to use them," Michael Klein, World Bank/IFC vice-president for financial and private sector development, said in a statement on Wednesday.
"Otherwise, businesses get trapped in the unregulated, informal economy, where they have less access to finance and hire fewer workers, and where workers lack the protection of labour law."
The aim of the Doing Business survey was to encourage good rules, Klein said, adding: "Good rules are a better basis for healthy business than 'who you know'."
SAinfo reporter
Would you like to use this article in your publication
or on your website?
See: Using SAInfo material
