Reforms of regulation are making it easier to do business worldwide, including in Africa, a region where the private sector faces some of its biggest challenges. The World Bank and IFC, in their fourth yearly Doing Business report, rank 175 economies on the ease of doing business. The report pinpoints some 213 specific reforms in over 100 economies. It explores when and how it is most effective for governments to streamline their business regulations.
Rwanda, for example, recently eliminated a colonial-era law that allowed only one notary for the entire country. Already some 36 notaries are working throughout the country, greatly reducing the time needed to start a business.
In Yemen, the government eliminated a 10 percent production tax that businesses paid each time they sold their products to other businesses. In many cases, by the time products reached consumers, these hidden turnover taxes far exceeded any profits for the companies involved. By replacing the production tax with a 5 percent sales tax levied only at the final consumer level, Yemen has decreased the total tax rate from 79 percent to 48 percent, helping both businesses and consumers.
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