Arusha, Tanzania, August 17, 2011—IFC
and the World Bank today launched a report stating that if the best of
East African regulations and procedures were implemented across the board,
the business regulatory environment in East Africa, as measured by the
report, would be comparable to that in Japan.
The report, Doing Business in the
East African Community 2011, draws on data from the annual global Doing
Business study and takes a detailed look at business regulations
in Burundi, Kenya, Rwanda, Tanzania, and Uganda. The report states that
East Africa could benefit from sharing good practices in business regulation
as measured by Doing Business.
In the past five years all East African
Community economies made it easier to do business. The average ranking
for those countries is 117 out of 183 economies overall in Doing Business
2011. Kenya has some of the most business-friendly regulations for
dealing with construction permits. Ugandan courts resolve insolvency relatively
efficiently. And Rwanda is among the fastest places to start a business.
“If each East African country was to
adopt the region’s best practice for each Doing Business indicator, East
Africa would rank 18, bringing the community closer to the global top performers,”
said Sabine Hertveldt, World Bank Senior Private Sector Development Specialist
and co-author of the report.
The East African Community is the regional
intergovernmental organization of the economies studied in this report.
In recent years EAC economies have worked to harmonize EAC Customs Union
legislation and common market protocols while establishing peer-to-peer
networks such as the Network of Reformers, based on similar models in the
Organization of Economic Cooperation and Development and the European Union.
In July 2010, EAC countries officially entered into a common market.
“We are serious about our role in the
creation of an environment which is attractive to increasing private sector
activity within and across our borders. We can do this by further streamlining
regulations affecting businesses and by ensuring that the business environment
is reassuring to investors,” stated Enos Bukuku, EAC Deputy Secretary
General in a speech delivered on behalf of the EAC Secretary General.
"Although the common market has
opened several opportunities for businesses in the region, it still requires
an investment climate that is properly suited to catalyzing additional
trade and investment. The EAC Doing Business report serves as a
platform for private sector and governments to work together to make doing
business in the community easier," said Agatha Nderitu, Executive
Director, East African Business Council.
Doing Business in the East African
Community 2011 was prepared as part of the EAC Investment Climate Program
supported by the World Bank Group and PRO€INVEST, a partnership program
developed and undertaken by the European Commission on behalf of the African,
Caribbean and Pacific Group of states.
Between June 2009 and May 2010, as recorded
by Doing Business 2011, East African countries implemented eight
reforms making it easier to do business. That brought the region’s total
since 2004 to 54. Of the eight reforms, three were carried out in Rwanda,
two each in Kenya and Uganda, and one in Burundi. For more information
on this report and about the Doing Business report series, visit www.doingbusiness.org.
About the World Bank Group
The World Bank Group is one of the world’s
largest sources of funding and knowledge for developing countries. It comprises
five closely associated institutions: the International Bank for Reconstruction
and Development (IBRD) and the International Development Association (IDA),
which together form the World Bank; the International Finance Corporation
(IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International
Centre for Settlement of Investment Disputes (ICSID). Each institution
plays a distinct role in the mission to fight poverty and improve living
standards for people in the developing world. For more information, please