Bamako, Mali, January 25, 2012—A
new report from IFC and the World Bank finds that member states of the
Organization for the Harmonization of Business Law in Africa (OHADA) have
increased the pace of reform in making it easier for local firms to do
The report, Doing Business in the OHADA Member States 2012, draws
on data from the annual global Doing Business study and takes a
detailed look at business regulations in Benin, Burkina Faso, Cameroon,
Central African Republic, Chad, the Comoros, Republic of Congo, Côte d'Ivoire,
Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Mali, Niger, Senegal,
and Togo. The report states that the 16 OHADA member states could benefit
from sharing good practices in business regulation as measured by Doing
Founded in Mauritius in 1993, OHADA is a system of business laws and implementing
institutions adopted by 16 West and Central African nations. OHADA is the
French acronym for "Organisation pour l'Harmonisation en Afrique du
Droit des Affaires."
The average ranking of the OHADA member states is 166 out of the 183 economies
measured in the global Doing Business 2012 report. Mali, with a
global rank of 146, is the easiest place among OHADA member states for
an entrepreneur to do business, followed by Burkina Faso (150) and Senegal
(154). In the past six years, all 16 OHADA member states made it easier
to do business. Across the region, the average cost of starting a business
decreased from 338 percent to 110 percent of the average per capita income.
The average time required to register property also decreased by 28 percent.
No single economy outperformed the others across the board. But in some
of the categories that were measured, the region’s economies are comparable
to the world’s best performers. Senegal, for example, has reduced the
time needed to set up a business to only five days through its “one-stop
shop” system – the same amount of time as in Canada. After four years
of successive reforms, dealing with construction permits in Burkina
Faso takes only 98 days – three months faster than the European Union
“Competitive economies cannot ignore what their neighbors are doing”,
said Dorothé Sossa, Permanent Secretary of OHADA. “Pooling, as is the
case with OHADA, and sharing reform experiences is an opportunity to improve
national and regional competitiveness."
One of OHADA’s priorities is to establish a uniform legal framework to
govern business activities in the region’s economies. This year,
the first revision of the body of commercial laws in the region simplified
business entry in eight member states and strengthened secured transaction
laws in all 16 member states.
”The overhaul of the common business legislation addressed two of the
top constraints to enterprise development and investment in Africa: access
to finance and the quality of the legal framework,” said Pierre Guislain,
Director of Investment Climate Advisory Services of the World Bank Group.
Doing Business in OHADA Member States 2012 was prepared as part of
the OHADA Business Law Reform Program of the Investment Climate Advisory
Services of the World Bank Group. The program includes support to the OHADA
member states and the OHADA Permanent Secretariat in reforming and implementing
the common set of laws.
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 visit www.worldbank.org,
About the Doing Business report series
Doing Business analyzes regulations that apply to an economy’s businesses
during their life cycle, including start-up and operations, trading across
borders, paying taxes, and resolving insolvency. The aggregate ease of
doing business rankings are based on 10 indicators and cover 183 economies.
Previous year’s rankings are back-calculated to account for the addition
of new indicator(s), data corrections, and methodology changes in existing
indicators so as to provide a meaningful comparison with the new rankings.
Doing Business does not measure all aspects of the business environment
that matter to firms and investors. For example, it does not measure security,
macroeconomic stability, corruption, the level of skills, or the strength
of financial systems. Its findings have stimulated policy debates in more
than 80 economies and enabled a growing body of research on how firm-level
regulation relates to economic outcomes across economies. For more information
about the Doing Business report series, please visit www.doingbusiness.org.
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