Here are the top 5 countries on the African continent that make it easy to start your business.
By Craig Falck for Africa Report
Photograph: © Jonathan Ross | Dreamstime.com
Each and every country has its own stipulations, rules and regulations when it comes to the formation of businesses. And because there are different forms and structures of business, each has its own regulations governing it. That’s why a list/index has been created to rank countries in terms of how easy it is to start a new business. This list is called the… wait for it… ease of doing business index.
When it comes to countries being ranked on this index, a number of factors are taken into consideration during the calculation phase. The World Bank has a list called “Doing Business” – it contains 10 categories that are vital to the business environment, and each is ranked in percentiles. The country in questions then scores a rating on each of these topics and the sum total will give the country’s ranking on the ease of doing business index.
When it comes to starting a business, Africa ranks rather far down the table. South Africa is the easiest country on the continent to start a business in, and we’re only ranked 35th easiest in the world. Next up are Rwanda at 45, Tunisia at 46, Botswana at 54 and Ghana at 63. The biggest problem with ranking countries according to these stipulated topics is that they’re measured on theoretical and not actual information. While the laws, rules and regulations stipulate that it may take up to 17 days to register a company or have it incorporated, you might find that it takes only 2 days or maybe 40 days. There are always going to be stumbling blocks or doors opening along the way that will hinder or aid businesses, so while it is a guide to follow, it’s not always 100 percent accurate. Other factors taken into consideration include the number of steps needed to start a business, trading across borders, getting credit and others. In South Africa, you need to fill out the necessary forms, find an accounting officer, lodge the papers and wait for your business to be accepted and registered. Simple, huh?
Other countries might be more complex or more straight forward, but is seems that good ol’ South Africa is the best place to be when you’re thinking about starting a business in Africa.
