BUSINESS MAVERICK: South Africa slips to an all-time low in the World Bank’s Ease of Doing Business Report

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BUSINESS MAVERICK: South Africa slips to an all-time low in the World Bank’s Ease of Doing Business Report By Ruan Jooste

South Africa has slipped again on the World Bank’s influential Ease of Doing Business report released on 23 October 2019 despite President Cyril Ramaphosa encouraging his Cabinet colleagues to pull out all the stops to improve the country’s ranking in global business competitiveness measures.

From a continental point of view, things are looking up, but very marginally. Economies in sub-Saharan Africa continued to improve their business climates, with the region’s largest economy, Nigeria, earning a place among the year’s top global improvers alongside Togo, according to the study. When it comes to trading across borders and paying taxes, businesses spend about 96 hours to comply with documentary requirements to import, versus 3.4 hours in OECD high-income economies. Small and medium-sized businesses in their second year of operation need to pay taxes more than 36 times a year, compared with an average of 23 times globally.

Mauritius is the highest-ranking sub-Saharan African economy overall. It is also the only economy from this region in the top 20 cohort. Mauritius and Rwanda are the only two sub-Saharan African economies in the top 50 on the ease of doing business ranking. South Sudan , Eritrea , and Somalia are the lowest-ranked economies in the region. Other large economies in the region and their rankings are Kenya , Ghana , Nigeria , and the Democratic Republic of Congo

Egypt kept the top spot as the most attractive economy on the continent, with Morocco displacing South Africa in the rankings, rising to second place.

 

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