Improved Business Environment in Africa – World Bank

A new joint report by the International Finance Corporation (IFC) and the World Bank was released today, measuring business regulations in 183 worldwide economies. Doing Business in a More Transparent World 2012 is a sage look at economic global developments, and revealed that a number of countries across the African continent are emerging business environments.

In the global rankings Morocco triumphed for most improved economy. According to Nadine Ghannam of the IFC, Morocco achieved top ranking by ‘simplifying the construction permitting process, easing the administrative burden of tax compliance, and providing greater protections to minority shareholders.’ She also confirmed that since 2005, Morocco had implemented 15 business regulatory reforms, suggesting that the policy changes and business regulation in the country are being well adhered to.
In Sub-Saharan Africa, a record 36 out of 46 economies improved business regulations this year. Despite not recording particularly high rankings, Sierra Leone and São Tomé and Príncipe emerged as much improved regions, an indication that many African regions are consolidating efforts towards improving their global business standing.
Mauritius is the top nation in Sub-Saharan Africa in terms of ‘ease of doing business’, scoring an overall worldwide ranking of 23. South Africa, given the global commodities boom, was an unsurprising second place. Rwanda scooped (perhaps unexpectedly) the third spot; it is a solid indication that the country’s domestic tourist industry is thriving, a particularly impressive feat when considered alongside a mediocre regional score of 31 for ‘trading across borders’. This is a particularly significant coup given the negative economic impact the 1994 genocide had on the country; and confirms that economic progress is not only a possibility in Africa, but is happening.