Main findings [Source: Doing Business article]:
- Doing business has become easier in East Africa since 2005.
- Sharing good practices could bring East Africa closer to global top performers.
- If each East African country were to adopt the region’s best practice in each of the Doing Business indicators, the region’s average ranking on the ease of doing business would be 18 rather than 117.
- If the best of East African regulations and procedures were implemented across the board, the business regulatory environment in East Africa, as measured by Doing Business, would be comparable to that in Japan.
- EAC members are already seeking to learn from one another’s good reform practices through the World Bank Group-sponsored Network of Reformers initiative.
Download the report in PDF here.
One idea about rankings in our world that I find interesting is that they always seem to shy away from intangible indicators. As an example, when discussing Tanzania’s grade on internal business, there is an invisible trust between business owners that may or may not be comparable to other countries. Likewise, there are problems with trust between all actors of modes of production which may or may not be comparable to other countries. So, considering that these levels of trust are difficult to compare, what exactly are we comparing? The reports mentions laws and regulations, which are tangible, paper-stored establishments of rules. Yet, some rules don’t make it on paper but keep things moving.
Nevertheless, reports like these can assist in understanding the ideal equilibrium – not only between goods, services and their consumers – but between global business and local East African business. That is, the “status quo” if it can be called one. This is useful because if you are a young investor, you are likely to go through many of the channels discussed in this report, including paying for construction permits, learning from peers in other countries, and protecting investors.
Does this report reflect your thoughts on the East African market? If not, is there anything else to say to young, up and coming business initiators?