David Bridgman
Regional Product Manager, Investment Climate IFC
Advisory Services
Brice Richard
Subnational Doing Business, Global Indicator and
Analysis Department, World Bank
Financial & Private Sector Development
What does Doing Business measure?
Doing Business reports
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Measure 183 economies
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Focus on regulations relevant to the life cycle
of a small to medium-sized domestic
business in the largest business city
•
Are based on standardized case scenarios
•
The objective: efficient regulations,
accessible to all, and simple to implement
Doing Business DOES NOT measure all aspects of the business
environment such as macroeconomic stability, corruption, level of
labor skills, proximity to markets, or of regulation specific to foreign
investment or financial markets.
Financial & Private Sector Development
Doing Business indicators – 11 areas of
business regulations (9 included in the ranking)
Start-up
 Starting a
business
Minimum capital
requirement,
procedures, time
and cost
Expansion
 Registering property
Procedures, time and
cost
 Getting credit
Credit information
systems
Movable collateral laws
Entry
Operations
 Dealing with
 Closing a
construction permits
Procedures, time and
cost
business
Time, cost and
recovery rate
 Paying taxes
Payments, time and
Total Tax Rate
 Protecting investors
 Trading across
Disclosure and liability in
related party
transactions
Documents, time and
cost
borders
 Enforcing contracts
 Getting electricity
Procedures, time and
cost to resolve a
commercial dispute
Procedures, time and
cost
Property rights
Investor protection
Access to credit
Closing
(annex I)
 Employing workers
(annex II)
Administrative burden
Flexibility in hiring
Recovery rate
Reallocation of
assets
Financial & Private Sector Development
What do city profiles add?
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Expands the DB indicators beyond the city measured by DB
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Includes rules and regulations at all levels of government
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Give specific locations an opportunity to tell their story
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Provides a tool for locations to compete globally
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Combines media appeal of DB with active participation of
subnational governments in the reform process
Financial & Private Sector Development
Doing Business in Juba 2011
Doing Business in Juba 2011
measures national and local regulations in
Juba as they apply to domestic small and
medium-size enterprises. Data is as of
November 2010.
Covers 9 indicators
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•
•
•
•
•
•
•
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Starting a business
Dealing with construction permits
Registering property
Getting credit
Protecting investors
Paying taxes
Trading across borders
Enforcing contracts
Closing a business
Includes global comparisons with183
economies and reform recommendations
Financial & Private Sector Development
Doing Business in Juba 2011
 This report is a useful tool for the Government of Southern Sudan, the
Government of Central Equatoria and Juba’s Payams in 4 respects
(1) It reflects what has been achieved since the peace agreement was
signed, such as the creation of the Business Registry, and the drafting
and enactment of laws guiding business registration, operation and exit.
(2) It identifies which areas offer opportunities for improvement:
• The legal and regulatory framework remains incomplete
• The existing legal system can be confusing
• Some institutions are either absent or overlapping
• Institutional capacity and infrastructure must be strengthened
(3) It offers recommendations for policymakers to improve the business
environment.
(4) It provides a benchmark for Southern Sudan, on the eve of formal
independence
Financial & Private Sector Development
Key findings
 Juba would rank 159th out of 183 economies measured by DB
on the ease of doing business
• Juba’s global rankings vary by indicator
Financial & Private Sector Development
Starting a business is fast in Juba,
thanks to the Business Registry
 Starting a limited liability company in Juba takes 11 procedures,
15 days, and costs 250.2% of income per capita
Financial & Private Sector Development
Dealing with construction permits
is expensive, due to connection to utilities
 To obtain all permits to build a warehouse and connect it to utilities, it
takes 10 procedures, 30 days, and costs 5,936% of income per capita
Financial & Private Sector Development
Registering property is expensive, survey
and lease transfer fees are high
 It takes an entrepreneur 7 procedures, 18 days and costs
14.7% of property value to register property in Juba
•
Fast time does not indicate that the
process is efficient – all operations are
manual and paper based – but reflects the
low volume of transactions.
•
Cost is the major bottleneck.
•
Entrepreneurs in Juba must pay 3
different fees to 3 different authorities.
Financial & Private Sector Development
Getting credit is difficult, related legal rights
and credit information are scarce
 Juba scores 2 out of 10 on the strength of legal rights index and
0 out of 6 on the depth of credit information index
 On the strength of legal rights index
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No clear framework for secured
transactions.
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No unified functioning registry for
collateral.
 On the depth of credit information index
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No credit information registry or bureau.
Financial & Private Sector Development
The laws protecting investors offer
limited protection to minority shareholders
 Juba scores 2.7 out of 10 on the overall strength of investor
protection index
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3 out of 10 on the extent of
disclosure index
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0 out of 10 on the director
liability index
•
5 out of 10 on the ease of
shareholder suits index
Financial & Private Sector Development
Entrepreneurs need details on paying taxes,
such as which taxes to pay, and to whom
 A company spends 218 hours per year making 46 tax payments,
and pays 25.5% of its profits paying taxes
•
Taxation Act in 2009 has been passed,
setting broad provisions, but provisions are
needed on which taxes are in effect, and
which authorities can collect which taxes.
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In Juba, companies with revenue under
SDG 10 million are considered small
companies and taxed accordingly at a lower
rate.
Financial & Private Sector Development
Trading across borders to and from
Juba is cumbersome and costly
 To import: submit11 documents, wait 60 days, and spend US$ 9,420
 To export: submit 9 documents, wait 52 days, and spend US$5,025
Importers in Juba spend over half of total time on paperwork, and most of
the cost on inland transportation
Trading across borders is slow and
expensive, for 3 main reasons
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Multiple checkpoints
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Complexity of the
administrative processes
•
Poor quality of inland
transport infrastructure
Financial & Private Sector Development
Enforcing contracts is fast, but there is a
need for more specialized legal professionals
 Enforcing contracts takes 46 procedures, 111 days and 26% of the
value of the claim
•
If the claim is above SDG 1,000 (US$ 453),
the claim falls under the jurisdiction of a first
grade judge at the county court.
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The time to enforce a contract comprises 21
days for the filing and service period, 60
days for the judgment period and 30 days
for the enforcement period.
•
The legal system can be confusing as it
relies on 3 distinct frameworks. There is also
need for more legal professionals, especially
advocates and judges specialized in
commercial law.
Financial & Private Sector Development
Closing a business – no practice in
formal bankruptcy
 Formal bankruptcy procedures are never or rarely used in Juba
• No cases of winding ups since 2005.
• Doing Business methodology requires at least 5 cases a
year during the last 5 years.
• Juba is classified as a “no practice economy”.
• Enacting the Insolvency Bill would be a step in the right
direction.
Financial & Private Sector Development
Why does it matter?
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Improving business start up is associated with an increase in
economic growth and investment rate.
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Lowering barriers to entry correlates to less perceived corruption
and a smaller informal sector.
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Removing barriers also gives opportunities of inclusion to youth
and women.
•
Efficient property registration can make it easier to transfer
property and can help boost the number of property registration.
Financial & Private Sector Development
Thank you !
www.doingbusiness.org /juba
Financial & Private Sector Development