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Doing Business indicators

Sub Saharan Africa- Gender on the Agenda for Shared Growth Amanda Ellis Doing Business Gender Manager & Lead Gender Specialist World Bank Group Accra, Ghana. November 2007 Doing Business indicators 2007 2008 2009 Starting a business Dealing with licenses Employing workers

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Doing Business indicators

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  1. Sub Saharan Africa-Gender on the Agenda for Shared GrowthAmanda EllisDoing Business Gender Manager& Lead Gender SpecialistWorld Bank GroupAccra, Ghana. November 2007

  2. Doing Business indicators 2007 2008 2009 • Starting a business • Dealing with licenses • Employing workers • Registering property • Enforcing contracts • Getting credit • Trading across borders • Protecting investors • Paying taxes • Closing a business • Update of 2007 • Add 3 countries • Reformer’s Club: • - 11 case studies • Add Not paying bribes • Add Using infrastructure • Research program on regulations and business opportunities for women

  3. Business friendly regulation leads to more registered businesses and start-ups Business density (registered firms per capita) Business entry (new firms in % of registered firms) Easiest Most difficult Easiest Most difficult Countries ranked by ease of doing business, quintiles Countries ranked by ease of doing business, quintiles Source: Doing Business database

  4. …and higher shares of female entrepreneurs and women in the labor force Female Entrepreneurs (% of entrepreneurs) Female unemployment (% of male unemployment) Most difficult Most difficult Easiest Easiest Countries ranked by ease of doing business, quintiles Source: Doing Business database, ILO

  5. 0.33 x 0.5 Top 30 on the Ease of Doing Business — 2007

  6. West Africa had the highest number positive reforms Number of reforms Benin Burkina Faso Cote d’Ivoire Gambia Ghana Guinea-Bissau Mali Mauritania Niger Nigeria Sierra Leone Mauritius Mozambique Lesotho Madagascar South Africa Seychelles Kenya Djibouti Rwanda Uganda Burundi Malawi Tanzania DRCongo

  7. … albeit with regional differences Intensity of Reforms

  8. Ghana: top reformer in 2006/7 2006 Time reduced from 169 to 34 days Procedure eliminated: Registration of deed and land commission 2007 Assessment and payment of Stamp duty Submit application for Title Certificate Preparation of transfer document Doing Business 2008

  9. Most complex regulations in Africa Average Rank, Ease of Doing Business

  10. Sub-Saharan Africa passed on the pace of reform Countries with at least one positive reform, in %

  11. Top 10 reformers in Africa

  12. African countries reformed in a wide variety of areas Starting a business Dealing with licenses Trading across borders Paying taxes Enforcing contract Dealing with licenses Getting credit information Getting credit legal rights Protecting investors Employing workers Closing a business

  13. Starting a business can be even harder for women • DRC – different rules • Uganda – women disproportionately disadvantaged by cumbersome procedures (less mobile, fewer contacts, seen as ‘soft targets’ by officials) Source: Kirkpatrick and Lawson, 2004.

  14. Women 3x more likely to be informal Source: Removing Barriers to Enterprise Formation in Liberia: Gender Analysis, 2007

  15. Becoming a top reformer by using good practices

  16. Stronger legal rights, better credit information: more credit Private Credit as a share of GDP Private Credit as a share of GDP

  17. African women entrepreneurs face additional obstacles • Custom law often prevails over civil law, meaning women have little land ownership • In collateral based banking systems this means less access to credit

  18. Banking profile in Tanzania Source: Finmark Trust 2007

  19. Africa is the toughest place to get credit – women especially unable to leverage excellent microfinance repayment rates

  20. Top 10 reformers in property registration 3 Top reformers in Africa “On average the top 10 reformers cut the time and cost by a third.” Ghana Niger Burundi AND Reforms for Women in LESOTHO where married women can now transfer property) 2006 2007 Doing Business 2008

  21. Highest tax rates still in Africa

  22. Women entrepreneurs are especially affected Women perceive tax and customs as greater constraints to business growth Source: Ellis et al. Gender and Economic Growth in Kenya, 2007

  23. Taking the best practice in Africa: “Africana” is # 8 The hypothetical country of the “United States of Africa” has the ease of: • Mauritius’ entry (#8) • Kenya’s licensing (#9) • Uganda’s employing workers (#11) • Ghana’s property registration (#26) • Botswana’s access to credit (#26) • South Africa’s investors Protection (#9) • Mauritius tax payments (#11) • Cape Verde trade (#51) • Tanzania’s contracts Enforcement (#35) • Namibia’s bankruptcy procedures (#47) 32 20 16 13 8 3 1 Source: Doing Business database (using a country’s top performance per indicator)

  24. Doing Business/WBG Gender Action Plan partnership • 2 year research program – promotes shared growth, supports MDG 3 • 3 key components: • Identify laws & regulations that discriminate against women * Global database • Investigate which reforms on business regulations have largest impact on opportunities for women • Prepare case studies on women entrepreneurs (their successes & challenges)

  25. Doing Business/WBG Gender Action Plan partnership THANK YOU to Doing Business Gender donors Australia, Canada, Germany, Iceland, Norway, UK www.doingbusiness.org www.worldbank/gender.org www.ifc.org/gender • CONTACT – aellis@worldbank.org

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