Uganda drops 12 positions in global business ranking
Posted Thursday, October 31 2013 at 00:00
Uganda was ranked 132nd out of 189 economies surveyed by the World Bank globally, down from 120th last year.
The failure to implement the required business reforms in the past year has cost Uganda 12 places in the global business ranking.
The new World Bank Doing Business Report 2014 released in Washington this week, shows that Uganda managed only one business reform by eliminating the need to have instruments of land physically stamped to certify payments of stamp duty.
This implies that the country is not making significant progress in improving the business environment for investors.
The executive director of Private Sector Foundation Uganda, Mr Gideon Badagawa, told the Daily Monitor that the decline is bad news for the country and the investors.
“Our environment is scaring away investors. Our regulatory reforms have been very slow. Access to credit, electricity, and transportation is still difficult in Uganda,” he said.
Mr Badagawa added: “The reform in the land registry has been very slow and it adds up to our poor ranking.”
The World Bank Doing Report reveals that Uganda was ranked 132nd out 189 economies surveyed by the World Bank globally. This compares with the 120th position Uganda attained last year out of 182 economies.
The report measures the efficiency and strength of laws, regulations and institutions that are relevant to domestic small and medium-sized companies throughout their life cycle.
By gathering and analysing comprehensive quantitative data to compare the business regulation environments across economies and over time, the survey aims at encouraging countries to adopt more effective regulations; offers measurable benchmarks for reform; and serves as a resource for academics, policymakers, private-sector executives and others interested in the business climate of each country.
Minister of state for investment Aridru Gabriel Gadison Ajedra told the Daily Monitor, yesterday that he had not seen the report but was shocked by the ranking.
“We have been trying to make some reforms by scraping outdated laws, and reducing on the number of licences required for investors to start business, which I believe would help us improve our ranking,” he said.
However, he said the speed at which reforms have been taking place in Uganda has been relatively slow.
Rwanda has been ranked number 32 out of 189 economies with eight reforms from number 114 last year; Burundi ranked 140 from 159 with six reforms.
Kenya has been ranked number 129 from 121 it was ranked last year with no reform over the last 12 months while Tanzania has been ranked number 145 from 134 last year with only one reform.
The report shows that Rwanda, Côte d’Ivoire, and Burundi were among the 10 economies that globally improved business laws.