Doing business in SA gets easier
Thématique :
sud afrique
Thursday, 11 September 2008
It is easier to do business in South Africa now than it was last year, according to the International Finance Corporation's (IFC) Doing Business 2009 Report.
Up from last year's 35th place ranking, South Africa is now the 32nd easiest place to do business out of 181 global economies.
South Africa's ranking places the country below Africa's top performer Mauritius (24) and ahead of countries such as Spain (49), Italy (65), Russia (120), India (122) and Brazil (125). The rankings are topped by Singapore, New Zealand and the United States in the top three places.
According to the IFC, this year's Doing Business Report marked a record year in the introduction of regulatory reforms in Eastern Europe, Central Asia and Africa where 28 countries completed 58 reforms that make it easier to do business. .
"This focus on reform comes after several years of record economic growth in Africa. Annual growth has averaged nearly 6% in the past decade, thanks to better macroeconomic conditions and greater peace on the continent," states the report.
"With more economic opportunities, regulatory constraints on business have become more pressing. Governments increasingly focus on reducing these constraints. And reformers recognise that bringing more economic activity to the formal sector through business and job creation is the most promising way to reduce poverty."
Reforms introduced in South Africa over the past year have made starting a business easier and eased taxes on business owners.
Since amendments in the Corporate Act were implemented, entrepreneurs no longer need to obtain legal assistance or have their incorporation documents notarised. The amendments also allow for electronic submission of particular documents. In the category rankings of the Doing Business Report, SA ranked 47th overall for starting a business.
In the past year, the government has reduced the tax burden on businesses with the removal of regional service council levies and a reduction in the rate of secondary tax on companies. SA's ranking in the Report's paying taxes category is 23.
Other areas where South Africa performed well include getting credit, where SA ranks 2nd out of the 181 economies surveyed and protecting investors where SA ranked 9th.
SA's overall ranking was brought down by the country's performance in employing workers (102) and trading across borders (147).
Speaking to The Times, Connie Mtshumi of Business Leadership South Africa said, "The country is one of the world leaders in financial services. Our stock market is one of the best in the world.
"We have a fairly stable economy; we are a gateway to the rest of the continent… There are obviously challenges, but we continue to work to improve in areas such as … lack of skills," she said.
For more on the Doing Business Report visit www.doingbusiness.org
It is easier to do business in South Africa now than it was last year, according to the International Finance Corporation's (IFC) Doing Business 2009 Report.
Up from last year's 35th place ranking, South Africa is now the 32nd easiest place to do business out of 181 global economies.
South Africa's ranking places the country below Africa's top performer Mauritius (24) and ahead of countries such as Spain (49), Italy (65), Russia (120), India (122) and Brazil (125). The rankings are topped by Singapore, New Zealand and the United States in the top three places.
According to the IFC, this year's Doing Business Report marked a record year in the introduction of regulatory reforms in Eastern Europe, Central Asia and Africa where 28 countries completed 58 reforms that make it easier to do business. .
"This focus on reform comes after several years of record economic growth in Africa. Annual growth has averaged nearly 6% in the past decade, thanks to better macroeconomic conditions and greater peace on the continent," states the report.
"With more economic opportunities, regulatory constraints on business have become more pressing. Governments increasingly focus on reducing these constraints. And reformers recognise that bringing more economic activity to the formal sector through business and job creation is the most promising way to reduce poverty."
Reforms introduced in South Africa over the past year have made starting a business easier and eased taxes on business owners.
Since amendments in the Corporate Act were implemented, entrepreneurs no longer need to obtain legal assistance or have their incorporation documents notarised. The amendments also allow for electronic submission of particular documents. In the category rankings of the Doing Business Report, SA ranked 47th overall for starting a business.
In the past year, the government has reduced the tax burden on businesses with the removal of regional service council levies and a reduction in the rate of secondary tax on companies. SA's ranking in the Report's paying taxes category is 23.
Other areas where South Africa performed well include getting credit, where SA ranks 2nd out of the 181 economies surveyed and protecting investors where SA ranked 9th.
SA's overall ranking was brought down by the country's performance in employing workers (102) and trading across borders (147).
Speaking to The Times, Connie Mtshumi of Business Leadership South Africa said, "The country is one of the world leaders in financial services. Our stock market is one of the best in the world.
"We have a fairly stable economy; we are a gateway to the rest of the continent… There are obviously challenges, but we continue to work to improve in areas such as … lack of skills," she said.
For more on the Doing Business Report visit www.doingbusiness.org
