The World Bank has ranked Rwanda as the African champion after Mauritius, in Doing Business edition 2018. The report measures the quality of the business environment around the world, and the performance of Kigali enters the top 50, from position 150 in 2008.
Rwanda is ranked the 2nd easiest place to do business in sub- Saharan Africa after Mauritius, the 1st in the East African region and the 41st globally out of the 190 economies assessed in this year’s World Bank Doing Business report.
Rwanda recorded its biggest step in the area of property registration where it is now ranked the second in the World, as it takes only 7 days to transfer property, and has also earned a good ranking in the area of getting credit as the country scored the 6th position globally.
Among the criteria according to which 190 economies have been scrutinized is electrification, the ease of starting a business, the tax burden and the protection of the right to property.
Highlights of Rwanda success over the he last 15 years:
These include mostly, much efforts, from position 150 in 2008 to 41st globally only after nine years, with 52 reforms in 15 years.
-Ten years ago in Rwanda, it took 370 days to transfer property. Today it takes 12 days due to efficient and fair governance regulations, with equal opportunities for all.
-On registering property plans are under the pipeline to combine the due diligence and notarization steps into one, as well as introduce an electronic title.
This improves time spent, the costs, and ensures quality service provision.
-With regard construction permits, Rwanda seeks to introduce a risk based approach on EIA so that projects will be categorized in accordance with their risk based impact reducing time and costs.
-On enforcing contracts and resolving insolvency reforms, Rwanda plans to establish a small claims procedure and introduce a new insolvency law too soon
-On paying taxes, 2 reforms are in the action plan, including establishment of a tax appeal board, and introduction of online single declaration and payment form for salary, pension contribution and medical, on one pay roll.
-On getting electricity, Rwanda seeks to adopt 5 reforms including reduction time of electricity connection, revision of tariffs with an aim of reducing charges, introduction of the quality service code that addresses deterrence.
-On starting a business 3 reforms; online employee registration, introduction of online EBM(Electronic Billing Machine) exemption of payment of trading license for SMEs
-Under the Office of the Registrar General, RDB reveals plans to launch a new online reform in the coming weeks to make it easier and more convenient for investors in Rwanda. The ORG says more reforms are under the pipeline
-In 2003, it took at least 61 days to start a business, but today is 24 days. The process of registering a business is done through the online portal.
-Rwanda has also reduced the time to settle a commercial dispute from 395 to 230 days today in the field of contract enforcement.
Rwandan will maintain the position
Rwanda’s remarkable progress is a gratitude for its people and government, who are making every effort to put in place the pro-business mechanisms. According to Clare Akamanzi, CEO of RDB, ease of doing business is aligned with the Government Rwanda’s policy of transforming Rwanda into a middle income country by 2020.
“We need to continue working harder to improve our business and investment climate so that Rwanda continues to register progress in the World Bank Doing Business rankings. In this regard public private partnerships remain a priority in promoting a private sector led economy in order to achieve all the set targets that will maintain Rwanda’s competitive position globally.”
Back to Vincent Munyeshyaka, the Minister of Trade and Industry, appreciates WB’s technical support and adds that Rwanda aims to maintain its position as a global player in the area of doing business. “[…]this report is an important tool in improving investor attraction in the country. The Government of Rwanda encourages all stakeholders to maintain momentum in promoting Rwanda as an investment destination”.
Rwanda has implemented the highest number of reforms in sub- Saharan Africa in the past 15 years totaling 52, followed by Kenya (32) and Mauritius (31), which gives the country the a manner of consistency that needs to be applauded as Yasser El-Gammal, the World Bank Rwanda Director says, “I congratulate Rwanda for the encouraging results and for maintaining consistency in improving the doing business environment every year”.
In Africa, the top five are Mauritius, Rwanda, Morocco, Kenya and Botswana. In the East African region, Uganda is 122nd, Tanzania is 137th, Burundi 164th, and South Sudan 187th. The last in Africa are: Somalia, Eritrea, South Sudan, Libya, CAR and DRC (182).
Jean Baptiste Karegeya