A new report has observed that most African economies are making consistent progress in improving business regulations.
The World Bank-IFC report released October 23, 2012 finds that of the 50 economies making the most improvement in business regulation for domestic firms since 2005, 17 are in sub-Saharan Africa and Ghana was included in the list despite slipping to 64th position in the global doing business rankings.
It says African economies that have improved the most since then include Ghana, Rwanda, Burkina Faso, Mali, Sierra Leone, Burundi, Guinea-Bissau, Senegal, Angola, Mauritius, Madagascar, Mozambique, Côte d Ivoire, Togo, Niger, Nigeria, and São Tomé and Príncipe.
According to the 10th edition of the global Doing Business report series and over the life of the report, Africa has consistently recorded a “high number of reforms”. It cited Rwanda as a country that particularly stands out as having consistently improved since 2005.
A case study in this year’s report featured Rwanda, which since 2005 has implemented 26 regulatory reforms as recorded by the Doing Business report.
From June 2011 through June 2012, the report found that 28 of 46 governments in sub-Saharan Africa implemented at least one regulatory reform making it easier to do business a total of 44 reforms.
Yet despite those achievements, the report noted that much more can be done to enable African economies to build a strong and competitive private sector.
The region’s average ranking on the ease of doing business is 140 out of 185. Mauritius and South Africa are the only African economies among the top 40 in the global ranking.
Doing Business is about smart business regulations, not necessarily fewer regulations, said Augusto Lopez-Claros, Director, Global Indicators and Analysis, World Bank Group.
“We are very encouraged that so many economies in Africa are among the 50 that have made the most improvement since 2005 as captured by the Doing Business indicators,” Lopez-Carlos added.
By Ekow Quandzie