TANZANIA-THE PLACE TO INVEST YOUR MONEY

The latest edition of a World Bank/International Finance Corporation report, `Doing Business - 2007`, ranks Tanzania and Ghana among the top ten reformers in reducing the time and cost to start businesses in the world. The report acknowledges that many governments have been taking action towards that end, with 213 reforms having been introduced in 112 countries between January 2005 and April 2006. ``During that period reformers simplified business regulations, strengthened property rights, eased tax burdens, increased access to credit and reduced the cost of exporting and importing,`` it notes. The report compares regulation modalities and levels in 175 countries, saying Tanzania introduced electronic data interchange and risk-based inspections at customs. This made the time taken to clear imports fall by 12 days. It is further noted that Gambia, Nigeria and Tanzania registered significant cuts in delays associated with legal procedures, while Mozambique and Tanzania simplified their business licensing regimes. A whole two-thirds of African countries made at least one reform, the report reveals, adding that Tanzania and Ghana were clearly among the top reformers in 2005/06. Also to win accolades are Georgia (the topmost reformer), Romania, Mexico, China, Peru, France, Croatia and Guatemala. South Africa dropped from last year\'s position 28 to 29, while the Democratic Republic of Congo retained position 175 and Burundi dropped from 160 to 166. The drastic social and economic reforms made in Tanzania made the country jump from position 150 last year to 142 in this year\'s rankings in terms of easing the conduct of doing business, explains the authoritative report. It says entrepreneurs now follow only 13 procedures and take only 30 days to start businesses in Tanzania, while formerly it would take up to 26 procedures and 313 days to get a business licence. In the top reforming economies in the past three years, nearly 85 per cent of reforms took place in the first 15 months of a new government, observes the report, noting: ``If it is easy to set up a business, more businesses register.`` Five times as many businesses register annually in El Salvador since its reforms, while new entries jumped by 78 per cent after reforms in the former Yugoslavia Republic of Macedonia, 55 per cent in Georgia, 25 per cent in Lithuania and 16 per cent in Uganda. Reforms picked up more in Africa than in any other region in 2005/06, with Madagascar reducing the minimum capital requirement by 80 per cent and speeding registration by relocating legal clerks to one-stop shops. Ethiopia and Uganda are also listed as having followed suit in company registration, as Nigeria started allowing entrepreneurs to verify the availability of company names online. For its part, Rwanda scrapped a law originally adopted by King Leopold of Belgium during the colonial era that allowed only one notary in the entire country. Now 33 notaries are working throughout the country, reducing business start-up delays appreciably. Kenya is still ranked as the better place of doing business in East Africa but it has dropped from position 80 last year to 83 this year. A new business has to follow 13 procedures in 54 days to start operations, 11 procedures over 170 days to get licences, and eight procedures and 73 days to register a property. One will need 11 documents in Kenya to export, while it will take 25 days to export and cost the enterprise $ 1,980 per container to export. Nine documents are needed for importation purposes and imports take up to 45 days to arrive at a cost of $2,325 per container. Indicators in the report show Uganda having fallen from position 103 last year to 107 this year, with entrepreneurs having to go through 17 procedures over 30 days to start businesses, 19 procedures in 156 days to get licences, and 13 procedures in 227 days to register a property. To embark on exports, 12 documents are required in Uganda, while it will take 42 days to export with container costing $1,050. A total of 19 documents are needed for imports, and it takes 67 days to receive the goods at a cost of $2,945 per container. Rwanda retained position 158, with a new enterprise having to follow nine procedures over 16 days to set up shop and 17 procedures in 252 days to get licensed. It will take five procedures and 371 days to register a property and 14 documents to export. The exports will take 60 days at a cost of $3,840 per container. A total of 20 documents are required for imports, the gods spending 95 days on the way at a cost of $4,080 per container, notes the report. Both last year and in 2005 Africa trailed all other regions in terms of pace reform. However, this year it ranks third, behind only Eastern Europe and Central Asia and the Organisation for Economic Co-Operation and Development high-income countries. The United States\' Millennium Challenge Account also introduced conditions for grant eligibility in 2004 based on performance in the time and cost of business start-up and 13 countries have since started reforms aimed at meeting the criteria. Burkina Faso, El Salvador, Georgia and Madagascar have already qualified. Since its introduction in October 2003, the Doing Business project has inspired or prompted 48 reforms around the world, with economies ranked in respect of how easy it is to do business there. This comes on a scale of 1 to 175, with first place being the best. A high ranking on the ease of doing business index means that the regulatory environment is conducive to the operation of business.