Pretoria, June 12, 2015—A new World
Bank Group commissioned report assessing the business environment and state
of regulations for domestic firms in South Africa finds that local entrepreneurs
face a wide array of business obstacles depending on which city they establish
their companies in the Republic. The report also highlights a number of
constructive practices that can be better leveraged within the country
to improve the business climate for local entrepreneurs and firms.
Released today, Doing Business in South Africa 2015 benchmarks nine
of the country’s largest urban areas and four ports across six Doing
Business topics namely: starting a business, dealing with construction
permits, getting electricity, registering property, enforcing contracts
and trading across borders.
The nine cities covered by the report are Buffalo City, Cape Town, Ekurhuleni,
eThekwini, Johannesburg, Mangaung, Msunduzi, Nelson Mandela Bay and Tshwane.
The four ports are Cape Town, Durban, Ngqura, and Port Elizabeth.
“The Government of South Africa is committed to expanding economic opportunity
for its citizens and improving the business climate in the country is a
first step towards that goal. As the Doing Business in South Africa report
highlights, there are many good practices already in place and these can
and should be expanded throughout the country,” said South Africa’s
deputy Minister of Finance Mcebisi Jonas.
The report finds that no city outperforms the others in all areas benchmarked:
Ekurhuleni, Johannesburg and Tshwane lead in starting a business, Cape
Town in dealing with construction permits, Mangaung in getting electricity
and enforcing contracts, and Johannesburg in registering property.
According to the new report, local officials could significantly improve
their local and national business climate by replicating good practices
already being used successfully in other cities in South Africa. Local
reforms could not only improve the business environment of one location
as compared to another within South Africa, but also make a significant
difference on the global scale. If a South African city was to adopt the
good practices found across the nine cities in dealing with construction
permits, getting electricity and enforcing contracts, it would surpass
the average performance of the OECD high-income economies in all three
However, notable challenges remain. Firms across South Africa still face
inefficient and complex red tape securing electricity, registering property
and trading across borders.
“We hope the report can draw policy makers’ attention to areas where
improvements are possible without major legislative changes,” said
Mierta Capaul, Lead Private Sector Development Specialist with the World
Bank Group. “Sharing experiences across cities and learning from each
other are key to promoting business regulatory improvements throughout
South Africa.” Capaul added.
Doing Business in South Africa 2015 report was produced by the Global
Indicators Group of the World Bank Group in collaboration with the National
Treasury, the Department of Trade and Industry and the South African Cities
Network. The study was co-funded by Switzerland’s State Secretariat for
Economic Affairs (SECO) and the National Treasury.
For more information or to access the report, please visit: www.doingbusiness.org/SouthAfrica.
Join us on Facebook
About the World Bank Group
The World Bank Group plays a key role in the global effort to end extreme
poverty and boost shared prosperity. It consists of five institutions:
the World Bank, including the International Bank for Reconstruction and
Development (IBRD) and the International Development Association (IDA);
the International Finance Corporation (IFC); the Multilateral Investment
Guarantee Agency (MIGA); and the International Centre for Settlement of
Investment Disputes (ICSID). Working together in more than 100 countries,
these institutions provide financing, advice, and other solutions that
enable countries to address the most urgent challenges of development.
For more information, please visit www.worldbank.org,
About National Treasury:
National Treasury is responsible for managing South Africa's national government
finances. It aims to advance policies that promote economic growth, social
development and poverty reduction. The National Treasury recognizes that
cities play a key role in driving economic growth. Through its Cities Support
Programme, the Treasury assists cities to plan and implement investments
that will support growth. In 2013 the National Treasury, the Department
of Trade and Industry, and the South African Cities Network partnered to
conduct a `Doing Business’ survey in our nine largest cities.