Doing Business 2018 Burundi Economy Pro le of Burundi Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Burundi Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region Sub-Saharan Africa DB 2018 Rank 190 1 Burundi Income Category Low income 164 Population 10,524,117 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 280 0 100 46.92 City Covered Bujumbura DB 2018 Distance to Frontier (DTF) 0 100 76.13: France (Rank: 31) 65.15: Kenya (Rank: 80) 56.94: Uganda (Rank: 122) 50.43: Regional Average (Sub­Saharan Africa) 46.92: Burundi (Rank: 164) Page 3   37.65: Congo, Dem. Rep. (Rank: 182) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Burundi Ease of Doing Business in Region Sub-Saharan Africa DB 2018 Rank 190 1 Burundi Income Category Low income 164 Population 10,524,117 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 280 0 100 46.92 City Covered Bujumbura DB 2018 Distance to Frontier (DTF) 0 100 76.13: France (Rank: 31) 65.15: Kenya (Rank: 80) 56.94: Uganda (Rank: 122) 50.43: Regional Average (Sub­Saharan Africa) 46.92: Burundi (Rank: 164) 37.65: Congo, Dem. Rep. (Rank: 182) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Burundi 1 28 42 55 82 95 Rank 109 132 138 136 144 150 168 164 163 177 182 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Burundi 100 91.94 80 62.54 60.34 60 DTF 51.16 47.02 45.74 43.33 40 30.71 26.45 20 10.00 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:0.00 Change:+0.02 Change:0.00 Investors Change:-0.52 Borders Change:0.00 Change:+0.19 Change:-2.51 Permits Change:0.00 Change:0.00 Change:+3.44 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:0.00 Change:+0.02 Change:0.00 Investors Change:-0.52 Borders Change:0.00 Change:+0.19 Change:-2.51 Permits Change:0.00 Change:0.00 Doing Business 2018 Burundi Change:+3.44 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Burundi Standardized Company Legal form Société à Responsabilité Limitée (SARL) - Limited Liability Company Paid-in minimum capital requirement BIF 0 City Covered Bujumbura Sub-Saharan OECD high Indicator Burundi Africa income Overall Best Performer Procedure – Men (number) 3 7.6 4.9 1.00 (New Zealand) Time – Men (days) 4 24.0 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 33.9 49.9 3.1 0.00 (United Kingdom) Procedure – Women (number) 3 7.7 4.9 1.00 (New Zealand) Time – Women (days) 4 24.1 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 33.9 49.9 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 25.6 8.7 0.00 (113 Economies) Figure – Starting a Business in Burundi and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 93.28: France (Rank: 25) 91.94: Burundi (Rank: 42) 89.78: Congo, Dem. Rep. (Rank: 62) 83.20: Kenya (Rank: 117) 76.82: Regional Average (Sub-Saharan Africa) 72.25: Uganda (Rank: 165) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Burundi – Procedure, Time and Cost Time Cost 4 35 3.5 30 ost (% of income per capita) 3 25 2.5 Time (days) 20 2 15 1.5 Page 6   10 1 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Burundi Figure – Starting a Business in Burundi – Procedure, Time and Cost Time Cost 4 35 3.5 30 Cost (% of income per capita) 3 25 2.5 Time (days) 20 2 15 1.5 10 1 0.5 5 0 0 1 2 3 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Burundi – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit all documents to the one-stop shop (API) and obtain registration 1 day Cost included in certi cate and the tax identi cation number procedure 2 Agency : Agence de la Promotion et de l'Investissement (API) The following documents need to be submitted at the Agence des Promotions des Investissements (API): 1. Application form for the creation of a new company (includes name of the company, type of company, address, initial capital, number of partners and their names, contribution of each partner) 2. Standard company statutes 3. Application form for registration with the Gre e of the Tribunal de Commerce 4. Application form for registration with the OBR to obtain the NIF 5. Photos of all partners 6. Copy of identities of all partners The applicant rst deposits all these documents at the API. The applicant will then obtain a certi cate of incorporation and a scal identi cation number (NIF) issued by the tax authority (O ce Burundais des Recettes). In addition, the applicant can now complete the registration of the company with the National Institute for Social Security at the one-stop shop. 2 Pay the registration fees at the Commercial Bank cashier 1 day - 50.000 BIF for Agency : Commercial Bank of Burundi (BANCOBU) submission fees - 50.000 BIF for the The applicant pays the registration fees at the Commercial Bank of Burundi registration of a new (BANCOBU) located inside the one-stop shop. company Page 7   - 30.000 BIF for the (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Burundi Details – Starting a Business in Burundi – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit all documents to the one-stop shop (API) and obtain registration 1 day Cost included in certi cate and the tax identi cation number procedure 2 Agency : Agence de la Promotion et de l'Investissement (API) The following documents need to be submitted at the Agence des Promotions des Investissements (API): 1. Application form for the creation of a new company (includes name of the company, type of company, address, initial capital, number of partners and their names, contribution of each partner) 2. Standard company statutes 3. Application form for registration with the Gre e of the Tribunal de Commerce 4. Application form for registration with the OBR to obtain the NIF 5. Photos of all partners 6. Copy of identities of all partners The applicant rst deposits all these documents at the API. The applicant will then obtain a certi cate of incorporation and a scal identi cation number (NIF) issued by the tax authority (O ce Burundais des Recettes). In addition, the applicant can now complete the registration of the company with the National Institute for Social Security at the one-stop shop. 2 Pay the registration fees at the Commercial Bank cashier 1 day - 50.000 BIF for Agency : Commercial Bank of Burundi (BANCOBU) submission fees - 50.000 BIF for the The applicant pays the registration fees at the Commercial Bank of Burundi registration of a new (BANCOBU) located inside the one-stop shop. company - 30.000 BIF for the registration with the Companies registry - 1000 BIF for the first page of the articles of association and 800 BIF per page for additional pages. 3 Make a company seal 2 days BIF 20,000 Agency : Shops dealing with stamp making The company seal is not required by law but it is done in practice. Companies need it for their daily activities in order to authenticate their documents. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of Page 8   building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Burundi Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 9   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Burundi Standardized Warehouse Estimated value of warehouse BIF 23,584,486.20 City Covered Bujumbura Sub-Saharan OECD high Indicator Burundi Africa income Overall Best Performer Procedures (number) 15 14.8 12.5 7.00 (Denmark) Time (days) 70 147.5 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 12.5 9.9 1.6 0.10 (5 Economies) Building quality control index (0-15) 3.0 8.0 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Burundi and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 79.29: France (Rank: 18) 63.91: Congo, Dem. Rep. (Rank: 121) 63.16: Kenya (Rank: 124) 58.37: Uganda (Rank: 148) 56.91: Regional Average (Sub-Saharan Africa) 51.16: Burundi (Rank: 168) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Burundi – Procedure, Time and Cost Time Cost 70 3 60 2.5 Cost (% of warehouse value) 50 2 Time (days) 40 1.5 30 1 20 0.5 10 0 0 1 *2 3 4 5 6 7 8 9 10 11 12 13 * 14 * 15 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 10   component indicators. Doing Business 2018 Burundi Figure – Dealing with Construction Permits in Burundi – Procedure, Time and Cost Time Cost 70 3 60 2.5 Cost (% of warehouse value) 50 2 Time (days) 40 1.5 30 1 20 0.5 10 0 0 1 *2 3 4 5 6 7 8 9 10 11 12 13 * 14 * 15 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Burundi and comparator economies – Measure of Quality 16 14.0 14 12 Index score 10 9.0 8.0 8.0 8.0 8 6 4 3.0 2 0 Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Details – Dealing with Construction Permits in Burundi – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a geotechnical study 14 days BIF 600,000 Agency : National Laboratory for Building Construction and Public Works (Laboratoire National Du Bâtiment et des Travaux Publics) Fees are based on a maximum calculation (Maximum d'essais), which comprises all the veri cations the National Laboratory of Construction and Public Works has to do. 2 Obtain a topographic survey of the land 2 days BIF 175,000 Agency : Private rm A topographic survey of the land is necessary for the accurate design of the building plans Page 11   Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Doing Business 2018 Burundi Details – Dealing with Construction Permits in Burundi – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a geotechnical study 14 days BIF 600,000 Agency : National Laboratory for Building Construction and Public Works (Laboratoire National Du Bâtiment et des Travaux Publics) Fees are based on a maximum calculation (Maximum d'essais), which comprises all the veri cations the National Laboratory of Construction and Public Works has to do. 2 Obtain a topographic survey of the land 2 days BIF 175,000 Agency : Private rm A topographic survey of the land is necessary for the accurate design of the building plans 3 Submit application for the building permit at the DGHU 1 day no charge Agency : Directorate of Urban Planning and Habitat (DGHU) Documents needed for the building permit are: • One copy of the property title • One copy of the original payment receipt of the “rrais de viabilisation” • One copy of the original “proces Verbal de bornage et d’arpentage” (obtained when the property title is being processed on the bare land) • Construction plans: Vues en plan, facades, coupe, plan d’implantation (4 copies of each) • Original estimated cost of construction: original (3 copies) • Original septic tank plan (3 copies) • Original structural plan since it is a G1 structure (ground level with 1 oor) • Original geotechnical study since it is a G1 structure The les are submitted at the ‘Service de Control de la DGHU’, who in turn will forward them internally to the Service de L’instruction. Applicants are instructed to return to the DGHU 3 days after submitting their les to check on the status of the applications and to see whether additional information or documents or changes must be made to the plans. Assuming that no modi cations are required, BuildCo will accompany the inspector to the site of construction. This is to verify that the parcel is correct and no construction work has started without a permit. During those 3 days, the service veri es the plans, particularly in terms of “plan d’occupation des sols” (which surface one is allowed to build on). If some remarks and missing documents need to be addressed, the on- premise inspection will occur once all issues are addressed. 4 Pay permit fees and the construction tax at the Banque de la Republique 1 day BIF 661,747 du Burundi Agency : Banque de la Republique du Burundi Payment of the permit fees and the construction tax is made at the Banque de la Republique du Burundi. The cost of the permit is 0.6% of estimated construction cost per square meter (BIF 750,000.00 x 1,300.6). Page 12   some remarks and missing documents need to be addressed, the on- Doing premise Business 2018 will inspection occur once all issues are addressed. Burundi 4 Pay permit fees and the construction tax at the Banque de la Republique 1 day BIF 661,747 du Burundi Agency : Banque de la Republique du Burundi Payment of the permit fees and the construction tax is made at the Banque de la Republique du Burundi. The cost of the permit is 0.6% of estimated construction cost per square meter (BIF 750,000.00 x 1,300.6). In addition, the urban development cost must also be paid and the amount depends on the location of construction. For the Doing Business case study, the location of the warehouse is the “quartier des usines.” For this speci c location, the cost is BIF 400 per square meter of the building (BIF 400 * 1,300.6). 5 Present proof of payment of the construction tax (taxe de batisse) to the 1 day no charge DGHU Agency : Directorate of Urban Planning and Habitat (DGHU) The proof of payment must be provided to the DGHU. 6 Obtain building permit 14 days no charge Agency : Directorate of Urban Planning and Habitat (DGHU) There are two signatures on a building permit. The Director of DGHU signs the le which is then forwarded to the Director General of DGHU for his signature. There are no mechanisms to inform applicants that their construction permit has been processed. It is the responsibility of the applicant to follow up. 7 Request certi cate of conformity and proof of development 1 day no charge Agency : Directorate of Urban Planning and Habitat (DGHU) Once the construction is completed, the owner requests an ‘attestation de mise en valeur et de conformité’ from DGHU. This attestation validates that the construction has been built in accordance to the approved plans. To complete the attestation, DGHU will inspect the site of construction. The application for a certi cate of conformity must be accompanied by a picture of the newly constructed building. 8 Receive inspection from DGHU 1 day no charge Agency : Directorate of Urban Planning and Habitat (DGHU) 9 Obtain certi cate of conformity and proof of development 1 day no charge Agency : Directorate of Urban Planning and Habitat (DGHU) 10 Deposit request for the modi cation of the "proces verbal de bornage et 1 day no charge d'arpentage" at the Cadastre Agency : Direction National du Cadastre Once a building has been completed, it must be registered at the Land Registry to have a property tile. Therefore, the “process verbal de bornage et d’arpentage” must be modi ed to re ect the new constructed building. A new “process verbal de bornage et d’arpentage" will be issued. This is required in order for the Land Registry to issue the property title. 11 Receive site inspection from the Cadastre 1 day no charge Page 13   new “process verbal de bornage et d’arpentage" will be issued. This is Doing required Business 2018 for Burundi in order the Land Registry to issue the property title. 11 Receive site inspection from the Cadastre 1 day no charge Agency : Direction National du Cadastre 12 Obtain updated "proces verbal de bornage et d'arpentage" from the 3 days no charge Cadastre Agency : Direction National du Cadastre 13 Request and receive updated property title from the land registry 30 days BIF 520,240 Agency : Department of Land Titles (Ministry of Justice) Obtain water connection 30 days BIF 500,000 14 Agency : REGIDESO Obtain sewage connection 15 days BIF 500,000 15 Agency : SETEMU Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Burundi – Measure of Quality Answer Score Building quality control index (0-15) 3.0 Quality of building regulations index (0-2) 0.0 How accessible are building laws and regulations in your economy? (0-1) Not easily 0.0 accessible. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 0.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents. Quality control before construction index (0-1) 0.0 Which third-party entities are required by law to verify that the building plans are in By law, there is 0.0 compliance with existing building regulations? (0-1) no need to verify plans compliance; Civil servant reviews plans. Quality control during construction index (0-3) 0.0 What types of inspections (if any) are required by law to be carried out during No inspections 0.0 construction? (0-2) are legally required during construction.. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0 inspections are not always done in practice during construction. Page 14   Quality control after construction index (0-3) 2.0 Takes place simultaneously with previous procedure. Doing Business 2018 Burundi Details – Dealing with Construction Permits in Burundi – Measure of Quality Answer Score Building quality control index (0-15) 3.0 Quality of building regulations index (0-2) 0.0 How accessible are building laws and regulations in your economy? (0-1) Not easily 0.0 accessible. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 0.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents. Quality control before construction index (0-1) 0.0 Which third-party entities are required by law to verify that the building plans are in By law, there is 0.0 compliance with existing building regulations? (0-1) no need to verify plans compliance; Civil servant reviews plans. Quality control during construction index (0-3) 0.0 What types of inspections (if any) are required by law to be carried out during No inspections 0.0 construction? (0-2) are legally required during construction.. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0 inspections are not always done in practice during construction. Quality control after construction index (0-3) 2.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 0.0 does not always occur in practice; Final inspection occurs most of the time. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction company. Page 15   Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 Liability Doing 2018 regimes and insurance Business index (0-2) Burundi 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 0.0 What are the quali cation requirements for the professional responsible for verifying There are no 0.0 that the architectural plans or drawings are in compliance with existing building speci c regulations? (0-2) requirements. What are the quali cation requirements for the professional who supervises the There are no 0.0 construction on the ground? (0-2) speci c requirements. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10- Official costs only, no bribes meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. Page 16   tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This construction on the ground? (0-2) speci c requirements. Doing Business 2018 Burundi Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10- Official costs only, no bribes meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 17   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Burundi Standardized Connection Price of electricity (US cents per kWh) 11.1 Name of utility Régie de Production et Distribution d'Eau et d'Electricité (Regideso) City Covered Bujumbura Sub-Saharan OECD high Indicator Burundi Africa income Overall Best Performer Procedures (number) 5 5.3 4.7 2 (United Arab Emirates) Time (days) 158 115.3 79.1 10 (United Arab Emirates) Cost (% of income per capita) 15517.3 3737.0 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 0 0.9 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Burundi and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 85.89: France (Rank: 26) 76.68: Kenya (Rank: 71) 45.91: Regional Average (Sub-Saharan Africa) 34.11: Uganda (Rank: 173) 33.59: Congo, Dem. Rep. (Rank: 175) 26.45: Burundi (Rank: 182) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Burundi – Procedure, Time and Cost Time Cost 18000 140 16000 Cost (% of income per capita) 120 14000 12000 100 Time (days) 10000 80 8000 60 6000 40 4000 20 Page 18   2000 getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Burundi Figure – Getting Electricity in Burundi – Procedure, Time and Cost Time Cost 18000 140 16000 Cost (% of income per capita) 120 14000 12000 100 Time (days) 10000 80 8000 60 6000 40 4000 20 2000 0 0 1 *2 3 4 *5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Burundi and comparator economies – Measure of Quality 9 8 8 7 6 Index score 5 4 4 3 2 0.9 1 0 0 0 0 Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Details – Getting Electricity in Burundi – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to REGIDESO and await and receive estimate 16 calendar days BIF 0 Agency : REGIDESO-Burundi As there are no online applications, the customer must apply in person at a REGIDESO customer service o ce by completing a form to request the connection. The customer has to provide copies of two documents: (i) the national identi cation card and (ii) the family composition certi cate and specify the location of the warehouse. There is no need to notarize those documents. There is an application fee to be paid. A few days after the external inspection, the customer goes to the o ce of REGIDESO to obtain the estimate and to pay for it. Once payment is made, REGIDESO will prepare a report of the works. This is an internal report listing all the material Page 19   necessary for the connection. The report is then transmitted to the Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Doing Business 2018 Burundi Details – Getting Electricity in Burundi – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to REGIDESO and await and receive estimate 16 calendar days BIF 0 Agency : REGIDESO-Burundi As there are no online applications, the customer must apply in person at a REGIDESO customer service o ce by completing a form to request the connection. The customer has to provide copies of two documents: (i) the national identi cation card and (ii) the family composition certi cate and specify the location of the warehouse. There is no need to notarize those documents. There is an application fee to be paid. A few days after the external inspection, the customer goes to the o ce of REGIDESO to obtain the estimate and to pay for it. Once payment is made, REGIDESO will prepare a report of the works. This is an internal report listing all the material necessary for the connection. The report is then transmitted to the department in charge of the actual connection work. No internal inspection or certi cate regarding the safety of the internal wiring has to be submitted. The electrician must be a licensed one, but not necessarily with REGIDESO. The customer takes the entire responsibility regarding the safety of the internal wiring with signing the contract. 2 Receive site inspection by REGIDESO and await feasibility study 1 calendar day BIF 0 Agency : REGIDESO-Burundi REGIDESO sends an engineer to the site to check the information and prepare a pro-forma if the connection is feasible and the energy required is available at that place. The pro-forma is sent to the Supervisor (Superieur hierarchique) for signature. The customer must be at the site for this visit in case the engineer of REGIDESO needs some clari cation. At that time, REGIDESO measures the distance from the site of the future transformer to the electrical grid. 3 Purchase transformer 105 calendar days BIF 0 Agency : Market A transformer needs to be ordered to accommodate a 140kVA connection, to go from medium voltage to low voltage. Acquiring the transformer is the responsibility of the client. If the utility has a transformers in stock, the customer simply purchases one from the warehouse of the utility. There are shortages, however, on electricity material. Therefore, transformers typically need to be imported, which can take several months. The imported transformer needs to comply with some standards set by REGIDESO. Once the material is acquired, REGIDESO will have to do a quick conformity check, after which it will begin the external works. 4 Receive external works and meter installation by REGIDESO 37 calendar days BIF 73,193,616.92 Agency : REGIDESO-Burundi The utility does all the external connection works - including the design of the connection from the electrical grid to the transformer. The meter is installed before the actual connection takes place. The meter is rented from REGIDESO; a at fee is paid for this. In the event that the meter breaks, it is replaced free of charge. 5 Sign supply contract with REGIDESO 1 calendar day BIF 0 Page 20   Agency : REGIDESO-Burundi REGIDESO; a at fee is paid for this. In the event that the meter breaks, it is Doing replaced Businessfree of charge. 2018 Burundi 5 Sign supply contract with REGIDESO 1 calendar day BIF 0 Agency : REGIDESO-Burundi The client usually signs the supply contract with the utility at the end of the external connection works, but can sign the contract also during the works. Takes place simultaneously with previous procedure. Details – Getting Electricity in Burundi – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) .. System average interruption frequency index (SAIFI) .. What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A Mechanisms for monitoring outages (0-1) 0 Does the distribution utility use automated tools to monitor outages? No Mechanisms for restoring service (0-1) 0 Does the distribution utility use automated tools to restore service? No Regulatory monitoring (0-1) 0 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on No reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 0 Are e ective tari s available online? No Link to the website, if available online Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who Page 21   wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the Takes place simultaneously with previous procedure. Doing Business 2018 Burundi Details – Getting Electricity in Burundi – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) .. System average interruption frequency index (SAIFI) .. What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A Mechanisms for monitoring outages (0-1) 0 Does the distribution utility use automated tools to monitor outages? No Mechanisms for restoring service (0-1) 0 Does the distribution utility use automated tools to restore service? No Regulatory monitoring (0-1) 0 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on No reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 0 Are e ective tari s available online? No Link to the website, if available online Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable Page 22   To make the data comparable across economies, several assumptions If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Burundi Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value BIF 23,584,486.20 City Covered Bujumbura Page 23   Sub-Saharan OECD high Doing Business 2018 Burundi Standard Property Transfer Property value BIF 23,584,486.20 City Covered Bujumbura Sub-Saharan OECD high Indicator Burundi Africa income Overall Best Performer Procedures (number) 5 6.2 4.6 1.00 (4 Economies) Time (days) 23 59.3 22.3 1.00 (3 Economies) Cost (% of property value) 3.1 7.8 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 4.5 8.6 22.7 29.00 (Singapore) Figure – Registering Property in Burundi and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 62.54: Burundi (Rank: 95) 60.69: France (Rank: 100) 54.99: Uganda (Rank: 124) 54.49: Kenya (Rank: 125) 51.71: Regional Average (Sub-Saharan Africa) 45.85: Congo, Dem. Rep. (Rank: 158) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Burundi – Procedure, Time and Cost Time Cost 3.5 20 3 Cost (% of property value) 2.5 15 Time (days) 2 10 1.5 1 5 0.5 0 0 1 2 3 *4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 24   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Burundi Figure – Registering Property in Burundi – Procedure, Time and Cost Time Cost 3.5 20 3 Cost (% of property value) 2.5 15 Time (days) 2 10 1.5 1 5 0.5 0 0 1 2 3 *4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Burundi and comparator economies – Measure of Quality 30 25 24.0 20 Index score 16.0 15 10.0 10.5 10 8.6 4.5 5 0 Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Details – Registering Property in Burundi – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Verify the identity of the seller and any encumbrances a ecting the 2 days no cost property at the Land Registry Agency : Land Registry (Direction des Titres Fonciers) The seller should be proving that the is the the real owner of the property. It is common that the parties go to the Land Registry (Department des Titres Fonciers) to check if the property is indeed registered to the present owner. The buyer also requests proof that the property is not encumbered by mortgages, liens or other securities. 2 The notary drafts the sale and purchase agreement and it is signed by 2 days BIF 10,000 (drafting both parties fee) + BIF 7000 Page 25   Agency : Notary's O ce (original) + BIF Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Doing Business 2018 Burundi Details – Registering Property in Burundi – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Verify the identity of the seller and any encumbrances a ecting the 2 days no cost property at the Land Registry Agency : Land Registry (Direction des Titres Fonciers) The seller should be proving that the is the the real owner of the property. It is common that the parties go to the Land Registry (Department des Titres Fonciers) to check if the property is indeed registered to the present owner. The buyer also requests proof that the property is not encumbered by mortgages, liens or other securities. 2 The notary drafts the sale and purchase agreement and it is signed by 2 days BIF 10,000 (drafting both parties fee) + BIF 7000 Agency : Notary's O ce (original) + BIF 3000/page (4 pages) Once the notary has veri ed the identity and the judicial capacity of the parties as well as the possession of the original property title by the seller, the notary prepares the sale and purchase agreement which the parties sign at his presence. 3 The buyer requests to register the property transfer at the One-Stop 12 days no cost Shop Agency for the transfer of properties (simultaneous with Agency : One-stop shop for the transfer of properties (Guichet unique de procedure 4) transfert de propriété) The buyer goes to the one-stop shop for transferring properties (Guichet unique de transfert de propriété) with the notarized transfer deed and the original property title. The one-stop shop includes the services of the Land Registry (Département des Titres Fonciers), the Municipality of Bujumbura, and the Burundi Revenue Authority (O ce Burundais des Recettes, OBR). The following documents need to be submitted to the Land Registry to proceed with the property transfer registration: (1) Original title of the property. (2) Letter requesting transferring the property (Lettre de demande de transfer). (3) Notarized sale and purchase agreement. (4) Copies of statutes of both companies. (5) Copy of the 'procès-verbal de bornage'. The seller should have one in his possession. Both parties need to obtain a tax clearance certi cate from the municipality proving that all city-level taxes are paid. The certi cates are obtained from the same person from the representatives of the municipality at the one- stop shop for both parties and they can be obtained at the same time. Both parties must be present at the municipality to request tax clearance certi cates on both. An expert is designated by the Land Registry to check whether the price in the transfer deed is correct. The OBR will also designate an expert to inspect the property. The objective of the inspection is to ensure that the price in the transfer deed is not underestimated or overestimated. After the inspections, the expert of the Land Registry writes a valuation report (rapport d'expertise) that is transmitted to the Director for signature. Page 26   If for instance the price on the transfer deed is lower, the transaction tax will the notary prepares the sale and purchase agreement which the parties sign Doing at his presence. Business 2018 Burundi 3 The buyer requests to register the property transfer at the One-Stop 12 days no cost Shop Agency for the transfer of properties (simultaneous with Agency : One-stop shop for the transfer of properties (Guichet unique de procedure 4) transfert de propriété) The buyer goes to the one-stop shop for transferring properties (Guichet unique de transfert de propriété) with the notarized transfer deed and the original property title. The one-stop shop includes the services of the Land Registry (Département des Titres Fonciers), the Municipality of Bujumbura, and the Burundi Revenue Authority (O ce Burundais des Recettes, OBR). The following documents need to be submitted to the Land Registry to proceed with the property transfer registration: (1) Original title of the property. (2) Letter requesting transferring the property (Lettre de demande de transfer). (3) Notarized sale and purchase agreement. (4) Copies of statutes of both companies. (5) Copy of the 'procès-verbal de bornage'. The seller should have one in his possession. Both parties need to obtain a tax clearance certi cate from the municipality proving that all city-level taxes are paid. The certi cates are obtained from the same person from the representatives of the municipality at the one- stop shop for both parties and they can be obtained at the same time. Both parties must be present at the municipality to request tax clearance certi cates on both. An expert is designated by the Land Registry to check whether the price in the transfer deed is correct. The OBR will also designate an expert to inspect the property. The objective of the inspection is to ensure that the price in the transfer deed is not underestimated or overestimated. After the inspections, the expert of the Land Registry writes a valuation report (rapport d'expertise) that is transmitted to the Director for signature. If for instance the price on the transfer deed is lower, the transaction tax will be paid based on the appraisal value provided by the expert from the Departement des Titres Fonciers and not on the agreed price between the parties. The expert of the OBR will also write a valuation report (rapport de contre- expertise). This report is necessary to issue tax clearance certi cates for both parties (Attestation de non redevabilité delivree par les services des impots) showing that all taxes at the national level are paid and that neither the seller nor the buyer owes any debt to the OBR. According to the Decree N°121/VP2/038 of April 29, 2013 the preparation of the valuation reports cannot exceed 4 working days. 4 The Land Registry and the Burundi Revenue Authority inspect the 1 day 5.000 BIF property (simultaneous with Agency : Land Registry (Direction des Titres Fonciers), Burundi Revenue procedure 3) Authority (O ce Burundais de Recettes, OBR) Experts from the Land Registry and the OBR inspect the property at the same of the request to register the property transfer. 5 Obtain the new title from the Land Registry "Direction des Titres 7 days 3% property value Fonciers" Page 27   (tax to change the Experts from the Land Registry and the OBR inspect the property at the Doing same request to of the 2018 Business register the property transfer. Burundi 5 Obtain the new title from the Land Registry "Direction des Titres 7 days 3% property value Fonciers" (tax to change the Agency : One-stop shop for the transfer of properties (Guichet unique de Property Title to the transfert de propriété) buyer's name) After obtaining the tax clearance certi cate from the OBR the buyer proceeds to pay the transfer tax to the OBR. The “Loi des Finances 2007” (article 35) adopted on December 30, 2007 and implemented in January 2008, has abolished the property transfer tax of 6%. Article 36 of the same law, authorizes the Land Registry “Département des Titres Fonciers” to charge a 3% of the property value for all transactions. Once the payment is made the Registration Division proceeds to the creation of a new title for the buyer. Takes place simultaneously with previous procedure. Details – Registering Property in Burundi – Measure of Quality Answer Score Quality of the land administration index (0-30) 4.5 Reliability of infrastructure index (0-8) 1.0 What is the institution in charge of immovable property registration? Direction des Titres Fonciers In what format are the majority of title or deed records kept in the largest business city Paper 0.0 —in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Direction du Cadastre National In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0 in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Separate 0.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 0.0 Who is able to obtain information on land ownership at the agency in charge of Only 0.0 immovable property registration in the largest business city? intermediaries and interested parties Page 28   Is the list of documents that are required to complete any type of property transaction Yes, in person 0.0 Takes place simultaneously with previous procedure. Doing Business 2018 Burundi Details – Registering Property in Burundi – Measure of Quality Answer Score Quality of the land administration index (0-30) 4.5 Reliability of infrastructure index (0-8) 1.0 What is the institution in charge of immovable property registration? Direction des Titres Fonciers In what format are the majority of title or deed records kept in the largest business city Paper 0.0 —in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Direction du Cadastre National In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0 in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Separate 0.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 0.0 Who is able to obtain information on land ownership at the agency in charge of Only 0.0 immovable property registration in the largest business city? intermediaries and interested parties Is the list of documents that are required to complete any type of property transaction Yes, in person 0.0 made publicly available–and if so, how? Link for online access: Is the applicable fee schedule for any property transaction at the agency in charge of Yes, in person 0.0 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: Does the agency in charge of immovable property registration commit to delivering a No 0.0 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Page 29   Link for Doing online access: Business 2018 Burundi Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Only 0.0 intermediaries and interested parties Is the applicable fee schedule for accessing maps of land plots made publicly available No 0.0 —and if so, how? Link for online access: Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 speci c time frame—and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Land dispute resolution index (0–8) 3.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private No 0.0 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary. Page 30   property transaction (e.g., checking the compliance of contracts with requirements of the law)? Doing Business 2018 Burundi If yes, who is responsible for checking the legality of the documents? Registrar; Notary. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary. Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a Le Tribunal de property worth 50 times gross national income (GNI) per capita and located in the Grande Instance largest business city, what court would be in charge of the case in the rst instance? en Mairie de Bujumbura How long does it take on average to obtain a decision from the rst-instance court for Between 2 and 3 1.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: Page 31   Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Burundi Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Sub-Saharan OECD high Indicator Burundi Africa income Overall Best Performer Strength of legal rights index (0-12) 2 5.1 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 0 3.0 6.6 8.00 (34 Economies) Page 32   Credit registry coverage (% of adults) 4.6 6.3 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Burundi Sub-Saharan OECD high Indicator Burundi Africa income Overall Best Performer Strength of legal rights index (0-12) 2 5.1 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 0 3.0 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 4.6 6.3 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 0.0 8.2 63.7 100.00 (23 Economies) Figure – Getting Credit in Burundi and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 75.00: Kenya (Rank: 29) 65.00: Uganda (Rank: 55) 50.00: France (Rank: 90) 40.73: Regional Average (Sub-Saharan Africa) 30.00: Congo, Dem. Rep. (Rank: 142) 10.00: Burundi (Rank: 177) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Burundi and comparator economies 8 7 7 6 6 6 5.1 Index score 5 4 4 3 2 2 1 0 Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Details – Legal Rights in Burundi Strength of legal rights index (0-12) 2 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Page 33   Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Doing Business 2018 Burundi Details – Legal Rights in Burundi Strength of legal rights index (0-12) 2 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds No or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and No obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised Yes reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law No allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Burundi and comparator economies 10 8 8 7 Index score 6 6 4 3.0 2 0 0 0 Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Details – Credit Information in Burundi Page 34   0 0 0 Burundi Doing Business 2018 Congo, Dem. Rep. Burundi France Kenya Uganda Sub-Saharan Africa Details – Credit Information in Burundi Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? No No 0 Are both positive and negative credit data distributed? No No 0 Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more No No 0 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? No No 0 By law, do borrowers have the right to access their data in the credit bureau or credit registry? No No 0 Can banks and financial institutions access borrowers’ credit information online (for example, No No 0 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial No No 0 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 0 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 0 228,822 Number of firms 0 26,298 Total 0 255,120 Percentage of adult population 0.0 4.6 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 35   transactions; Available legal remedies (damages, Percentage of adult population 0.0 4.6 Doing Business 2018 Burundi Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Sub-Saharan OECD high Indicator Burundi Africa income Overall Best Performer Extent of conflict of interest regulation index (0- 5.7 4.8 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 3 4.0 6.4 Page 36   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Burundi Sub-Saharan OECD high Indicator Burundi Africa income Overall Best Performer Extent of conflict of interest regulation index (0- 5.7 4.8 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 3 4.0 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Burundi and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 66.67: France (Rank: 33) 58.33: Kenya (Rank: 62) 50.00: Uganda (Rank: 108) 43.72: Regional Average (Sub-Saharan Africa) 43.33: Burundi (Rank: 132) 36.67: Congo, Dem. Rep. (Rank: 164) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Burundi and comparator economies – Measure of Quality Burundi 2 7 8 1 6 2 Congo, Dem. Rep. 4 1 7 3 4 3 France 10 3 8 8 5 6 Kenya 4 5 6 6 5 9 Uganda 6 5 3 5 4 7 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Sub-Saharan Africa 4.2 3.5 5.5 3.3 4.6 5.6 0 5 10 15 20 25 30 35 40 45 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Burundi – Measure of Quality Answer Score Page 37   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Burundi Details – Protecting Minority Investors in Burundi – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 5.7 Extent of disclosure index (0-10) 8 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Shareholders 3.0 excluding interested parties Must an external body review the terms of the transaction before it takes place? (0-1) Yes 1.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0 2) obligation Extent of director liability index (0-10) 7 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if unfair or 2.0 caused to Buyer? (0-2) prejudicial Can shareholders hold the other directors liable for the damage the transaction caused Liable if unfair or 2.0 to Buyer (0-2) prejudicial Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by No 0.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if 1.0 negligently concluded Ease of shareholder suits index (0-10) 2 Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Documents that 1.0 the defendant relied on Page 38   Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction Doing 2018 (0-1) documents? Business Burundi Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Documents that 1.0 the defendant relied on Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) No 0.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) At the discretion 0.0 of the court Extent of shareholder governance index (0-10) 3 Extent of shareholder rights index (0-10) 6 Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a No 0.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new No 0.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 1 Is it forbidden to appoint the same individual as CEO and chair of the board of No 0.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising No 0.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% No 0.0 of Buyer? Page 39   Must the board of directors include a separate audit committee exclusively comprising No 0.0 board Doing members? Business 2018 Burundi Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% No 0.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? No 0.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 2 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? No 0.0 Must Buyer disclose information about board members’ primary employment and No 0.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? No 0.0 Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? No 0.0 Assuming that Buyer is a limited company, must members meet at least once a year? No 0.0 Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be No 0.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Page 40   Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory Assuming that Buyer is a limited company, must Buyer's annual nancial statements be No 0.0 audited by an external auditor? Doing Business 2018 Burundi Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. Sub-Saharan OECD high Indicator Burundi Africa income Overall Best Performer Payments (number per year) 25 37.2 10.9 3 (Hong Kong SAR, China) Page 41   return, but within the tax assessment period. Doing Business 2018 Burundi Sub-Saharan OECD high Indicator Burundi Africa income Overall Best Performer Payments (number per year) 25 37.2 10.9 3 (Hong Kong SAR, China) Time (hours per year) 232 280.8 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 41.5 46.8 40.1 18.47% (32 Economies) Postfiling index (0-100) 28.21 54.39 83.45 99.38 (Estonia) Figure – Paying Taxes in Burundi and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 78.55: France (Rank: 54) 73.10: Uganda (Rank: 84) 71.67: Kenya (Rank: 92) 60.34: Burundi (Rank: 138) 57.49: Regional Average (Sub-Saharan Africa) 39.40: Congo, Dem. Rep. (Rank: 181) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Burundi and comparator economies – Measure of Quality 100 92.40 90 80 72.28 70 62.03 Index score 60 54.39 50 40 28.21 27.08 30 20 10 0 Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Details – Paying Taxes in Burundi Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate (% Notes contribution (number) Payments (hours) tax rate Tax base of profit) on TTR Page 42   Impôt sur le revenu 4 76 30% (1%) taxable profits 27.38 Doing Business 2018 Burundi Figure – Paying Taxes in Burundi and comparator economies – Measure of Quality 100 92.40 90 80 72.28 70 62.03 Index score 60 54.39 50 40 28.21 27.08 30 20 10 0 Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Details – Paying Taxes in Burundi Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate (% Notes contribution (number) Payments (hours) tax rate Tax base of profit) on TTR Impôt sur le revenu 4 76 30% (1%) taxable profits 27.38 des sociétés Cotisations à la 4 45 6% gross salaries 6.77 securité sociale - employeur Risque professionnel 0 jointly 3% gross salaries 3.38 Taxe sur les terres de 1 BIF 450 by square meter of 1.97 construction property Taxe sur les plus- 1 20% profits 1.01 values en capitaux Taxe sur les véhicules 1 BIF truck weight 0.47 100000 Tax on Interest 1 15% Interest Income 0.38 Income Taxe foncière 1 BIF 50 by square meter of 0.13 non-constructed property Taxe sur la valeur 12 111 18% value added 0.00 not ajoutée (TVA) included Cotisations à la 0 jointly 4% gross salaries 0.00 not securité sociale - included employé Totals 25 232 41.5 Details – Paying Taxes in Burundi – Tax by Type Page 43   Totals 25 232 41.5 Doing Business 2018 Burundi Details – Paying Taxes in Burundi – Tax by Type Taxes by type Answer Profit tax (% of profit) 28.4 Labor tax and contributions (% of profit) 10.2 Other taxes (% of profit) 3.0 Details – Paying Taxes in Burundi – Measure of Quality Answer Score Post ling index (0-100) 28.21 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? No Restrictions on VAT refund process Restricted to international traders and others Percentage of cases exposed to a VAT audit (%) Not applicable Is there a mandatory carry forward period? Yes Time to comply with VAT refund (hours) No VAT refund 0 per case study scenario Time to obtain a VAT refund (weeks) No VAT refund 0 per case study scenario Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 50% - 74% Time to comply with a corporate income tax audit (hours) 13.0 78.9 Time to complete a corporate income tax audit (weeks) 21.1 33.93 Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Page 44   a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Burundi Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) Traffic delays and road police checks while from its natural import partner—the economy from which it imports the shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 45   a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Burundi Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) Traffic delays and road police checks while from its natural import partner—the economy from which it imports the shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 46   of agriculture or industry, national security agencies and any other Doing Business 2018 Burundi government authorities. Sub-Saharan OECD high Indicator Burundi Africa income Overall Best Performer Time to export: Border compliance (hours) 59 100.1 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 136 592.1 149.9 0.00 (19 Economies) Time to export: Documentary compliance 120 87.8 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 150 215.1 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 154 136.4 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 444 686.8 111.6 0.00 (27 Economies) Time to import: Documentary compliance 180 103.0 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 1025 300.1 25.6 0.00 (30 Economies) Figure – Trading across Borders in Burundi and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 67.63: Kenya (Rank: 106) 62.08: Uganda (Rank: 127) 52.56: Regional Average (Sub-Saharan Africa) 47.02: Burundi (Rank: 164) 100.00: France (Rank: 1) 1.26: Congo, Dem. Rep. (Rank: 188) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Burundi – Time and Cost Time Cost 200 1200 180 1025 154 1000 150 120 800 Time (hours) Cost (USD) 100 600 444 59 400 50 136 150 200 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Page 47   Doing Business 2018 Burundi Figure – Trading across Borders in Burundi – Time and Cost Time Cost 200 1200 180 1025 154 1000 150 120 800 Time (hours) Cost (USD) 100 600 444 59 400 50 136 150 200 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Burundi Characteristics Export Import Product HS 09 : Coffee, tea, matï and spices HS 8708: Parts and accessories of motor vehicles Trade partner Switzerland Belgium Border Kobero-Kabanga border crossing Kobero-Kabanga border crossing Distance (km) 225 225 Domestic transport time (hours) 20 26 Domestic transport cost (USD) 261 361 Details – Trading across Borders in Burundi – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 24.0 105.9 Export: Clearance and inspections required by agencies other than customs 34.7 30.0 Export: Port or border handling 0.0 0.0 Import: Clearance and inspections required by customs authorities 65.1 76.4 Import: Clearance and inspections required by agencies other than customs 85.7 352.1 Import: Port or border handling 12.0 15.0 Details – Trading across Borders in Burundi – Trade Documents Export Import Export license Commercial invoice Certificate of origin Packing list Page 48   Domestic transport cost (USD) 261 361 Doing Business 2018 Burundi Details – Trading across Borders in Burundi – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 24.0 105.9 Export: Clearance and inspections required by agencies other than customs 34.7 30.0 Export: Port or border handling 0.0 0.0 Import: Clearance and inspections required by customs authorities 65.1 76.4 Import: Clearance and inspections required by agencies other than customs 85.7 352.1 Import: Port or border handling 12.0 15.0 Details – Trading across Borders in Burundi – Trade Documents Export Import Export license Commercial invoice Certificate of origin Packing list Commercial invoice Import license NIF (fiscal identification number) Certificate of conformity Transit document Transit document Phytosanitary certificate Tax NIF Export declaration Electronic cargo tracking note (BESC) Bill of lading Import declaration SOLAS certificate Certificate of origin Gate pass Bill of lading SOLAS certificate Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that thePage 49   court SOLAS certificate Doing Business 2018 Burundi Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value BIF 8,320,219.00 Court name Bujumbura Commercial Court City Covered Bujumbura Sub-Saharan OECD high Indicator Burundi Africa income Overall Best Performer Time (days) 832 656.8 577.8 164.00 (Singapore) Cost (% of claim value) 38.6 44.0 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 7.0 6.5 11.0 15.50 (Australia) Figure – Enforcing Contracts in Burundi and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.04: France (Rank: 15) 60.60: Uganda (Rank: 64) 58.27: Kenya (Rank: 90) Page 50   of judicial processes Quality Business Doing index (0-18) 2018 Burundi 7.0 6.5 11.0 15.50 (Australia) Figure – Enforcing Contracts in Burundi and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.04: France (Rank: 15) 60.60: Uganda (Rank: 64) 58.27: Kenya (Rank: 90) 48.14: Regional Average (Sub-Saharan Africa) 45.74: Burundi (Rank: 150) 36.06: Congo, Dem. Rep. (Rank: 172) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Burundi – Time and Cost Time Cost 900 832 90 80.6 800 80 Cost (% of claim value) 700 656.8 70 610 577.8 600 60 Time (days) 465 490 500 41.8 44.0 50 38.6 395 400 40 31.3 300 30 21.5 17.4 200 20 100 10 0 0 Burundi Congo, Dem. Rep. France Kenya OECD high income Sub-Saharan Africa Uganda Figure – Enforcing Contracts in Burundi and comparator economies – Measure of Quality Burundi 1.5 1 0 4.5 Congo, Dem. Rep. 2 0.5 0 4.5 France 2.5 3 1 4.5 Kenya 2 2 0.5 4.5 Uganda 2.5 1.5 0.5 4 OECD high income 2.5 2.9 2 3.6 Sub-Saharan Africa 2 1.1 0.3 3.2 0 2 4 6 8 10 Page 51   12 0 0 Burundi Congo, Dem. Rep. France Kenya OECD high income Sub-Saharan Africa Uganda Doing Business 2018 Burundi Figure – Enforcing Contracts in Burundi and comparator economies – Measure of Quality Burundi 1.5 1 0 4.5 Congo, Dem. Rep. 2 0.5 0 4.5 France 2.5 3 1 4.5 Kenya 2 2 0.5 4.5 Uganda 2.5 1.5 0.5 4 OECD high income 2.5 2.9 2 3.6 Sub-Saharan Africa 2 1.1 0.3 3.2 0 2 4 6 8 10 12 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Burundi Indicator Time (days) 832 Filing and service 22 Trial and judgment 395 Enforcement of judgment 415 Cost (% of claim value) 38.6 Attorney fees 22.5 Court fees 10 Enforcement fees 6.1 Quality of judicial processes index (0-18) 7.0 Court structure and proceedings (-1-5) 4.5 Case management (0-6) 1.0 Court automation (0-4) 0.0 Alternative dispute resolution (0-3) 1.5 Details – Enforcing Contracts in Burundi – Measure of Quality Page 52   Alternative dispute resolution (0-3) 1.5 Doing Business 2018 Burundi Details – Enforcing Contracts in Burundi – Measure of Quality Answer Score Quality of judicial processes index (0-18) 7.0 Court structure and proceedings (-1-5) 4.5 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 1.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 1.0 2.a. Does the law regulate the maximum number of adjournments that can be Yes granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? Yes 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? Yes 3. Can two of the following four reports be generated about the competent court: (i) No 0.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the No 0.0 competent court? 5. Are there any electronic case management tools in place within the competent court No 0.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court No 0.0 for use by lawyers? Court automation (0-4) 0.0 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 53   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Burundi 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? No 0.0 4. Publication of judgments 0.0 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme No court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 1.5 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 0.0 2.a. Is voluntary mediation or conciliation available? No 2.b. Are mediation, conciliation or both governed by a consolidated law or n.a. consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., n.a. if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 54   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Burundi Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) Sub-Saharan OECD high Indicator Burundi Africa income Overall Best Performer Recovery rate (cents on the dollar) 7.7 20.3 71.2 93.1 (Norway) Time (years) 5.0 2.9 1.7 0.4 (Ireland) Page 55   Cost (% of estate) 30.0 22.7 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Burundi Sub-Saharan OECD high Indicator Burundi Africa income Overall Best Performer Recovery rate (cents on the dollar) 7.7 20.3 71.2 93.1 (Norway) Time (years) 5.0 2.9 1.7 0.4 (Ireland) Cost (% of estate) 30.0 22.7 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 8.5 6.2 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Burundi and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.91: France (Rank: 28) 43.11: Kenya (Rank: 95) 38.94: Uganda (Rank: 113) 30.71: Burundi (Rank: 144) 30.28: Regional Average (Sub-Saharan Africa) 0.00: Congo, Dem. Rep. (Rank: 168) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Burundi – Time and Cost Time Cost 6 35 5.0 30.0 29.5 5 30 4.5 22.0 22.7 25 Cost (% of estate) Time (years) 4 2.9 20 3 2.2 15 1.9 1.7 2 9.0 9.1 10 1 5 0 0 Burundi no practice France Kenya OECD high income Sub-Saharan Africa Uganda Congo, Dem. Rep. Figure – Resolving Insolvency in Burundi and comparator economies – Measure of Quality Burundi 4 2.5 1 1 Page 56   Congo, Dem. Rep. 5.5 2 1 0.5 Burundi no practice France Kenya OECD high income Sub-Saharan Africa Uganda Congo, Dem. Rep. Doing Business 2018 Burundi Figure – Resolving Insolvency in Burundi and comparator economies – Measure of Quality Burundi 4 2.5 1 1 Congo, Dem. Rep. 5.5 2 1 0.5 France 6 3 1 1 Kenya 3 3 1 2 Uganda 3 2.5 0 0.5 OECD high income 5.4 2.8 2.3 1.9 Sub-Saharan Africa 4.1 2.3 1 0.4 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Burundi and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 80 73.5 70 60 50 37.5 40 27.9 30 20.3 20 7.7 10 0.0 0 Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Details – Resolving Insolvency in Burundi Indicator Answer Explanation Proceeding foreclosure Mirage cannot repay the money owed to BizBank, so the bank will start foreclosure proceedings at the Commercial Court. At the end of the procedure, the hotel building will be sold and BizBank will obtain payment. Outcome piecemeal sale The foreclosure procedure will lead to the sale of the immovable asset and repayment to the creditors so the hotel will no longer exist. Time (in years) 5.0 According to our estimations, the foreclosure proceedings will take approximately 5 years. This estimate includes summoning Mirage, the foreclosure proceedings and the organization of the sale by the bailiff. Cost (% of 30.0 According to our estimations, foreclosure proceedings will cost approximately BIF 81,000,000 estate) the (30% of the value of Mirage). Lawyer fees constitute the most important components ofPage 57   procedure. Burundi Congo, Dem. Rep. France Kenya Uganda Sub-Saharan Africa Doing Business 2018 Burundi Details – Resolving Insolvency in Burundi Indicator Answer Explanation Proceeding foreclosure Mirage cannot repay the money owed to BizBank, so the bank will start foreclosure proceedings at the Commercial Court. At the end of the procedure, the hotel building will be sold and BizBank will obtain payment. Outcome piecemeal sale The foreclosure procedure will lead to the sale of the immovable asset and repayment to the creditors so the hotel will no longer exist. Time (in years) 5.0 According to our estimations, the foreclosure proceedings will take approximately 5 years. This estimate includes summoning Mirage, the foreclosure proceedings and the organization of the sale by the bailiff. Cost (% of 30.0 According to our estimations, foreclosure proceedings will cost approximately BIF 81,000,000 estate) (30% of the value of Mirage). Lawyer fees constitute the most important components of the procedure. Recovery rate (cents on the 7.7 dollar) Details – Resolving Insolvency in Burundi – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 8.5 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 4.0 Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Page 58   Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 dollar) Doing Business 2018 Burundi Details – Resolving Insolvency in Burundi – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 8.5 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 4.0 Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit No 0.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0 assigned to post- commencement creditors Reorganization proceedings index (0-3) 1.0 Which creditors vote on the proposed reorganization plan? (b) Only creditors 1.0 whose rights are a ected by the proposed plan Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 1.0 Page 59   Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive Doing at least as Business much as 2018 what they would obtain in a liquidation? Burundi Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 1.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request Yes 1.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to No 0.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost Page 60   (i) notice period for redundancy dismissal; (ii) the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Burundi Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Burundi Answer Hiring Page 61   Fixed-term contracts prohibited for permanent tasks? No days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Burundi Details – Labor Market Regulation in Burundi Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) No limit Maximum length of xed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 2.4 Ratio of minimum wage to value added per worker 0.1 Maximum length of probationary period (months) 6.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 35.0 Premium for work on weekly rest day (% of hourly pay) 0.0 Premium for overtime work (% of hourly pay) 35.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 20.0 Paid annual leave for a worker with 5 years of tenure (working days) 21.0 Paid annual leave for a worker with 10 years of tenure (working days) 22.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 21.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Page 62   Third-party Doing approval Business 2018 if nine workers are dismissed? Burundi No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? Yes Priority rules for reemployment? Yes Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3 Notice period for redundancy dismissal for a worker with 5 years of tenure 8.7 Notice period for redundancy dismissal for a worker with 10 years of tenure 13.0 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 8.7 Severance pay for redundancy dismissal for a worker with 1 year of tenure 0.0 Severance pay for redundancy dismissal for a worker with 5 years of tenure 8.7 Severance pay for redundancy dismissal for a worker with 10 years of tenure 13.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 7.2 Job quality Equal remuneration for work of equal value? No Gender nondiscrimination in hiring? Yes Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 84.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? No Unemployment protection after one year of employment? No Minimum contribution period for unemployment protection (months)? n.a. Business Reforms in Burundi In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Burundi implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Starting a Business: Burundi made starting a business more expensive by increasing the cost of registering a business. DB2017 Paying Taxes: Burundi made paying taxes easier by introducing a new tax return and eliminating the personalized VAT declaration form. DB2014 Page 63   Minimum contribution period for unemployment protection (months)? n.a. Doing Business 2018 Burundi Business Reforms in Burundi In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Burundi implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Starting a Business: Burundi made starting a business more expensive by increasing the cost of registering a business. DB2017 Paying Taxes: Burundi made paying taxes easier by introducing a new tax return and eliminating the personalized VAT declaration form. DB2014 Starting a Business: Burundi made starting a business easier by allowing registration with the Ministry of Labor at the one-stop shop and by speeding up the process of obtaining the registration certi cate. Dealing with Construction Permits: Burundi made dealing with construction permits easier by establishing a one-stop shop for obtaining building permits and utility connections. Getting Electricity: Burundi made getting electricity easier by eliminating the electricity utility’s monopoly on the sale of materials needed for new connections and by dropping the processing fee for new connections. Registering Property: Burundi made transferring property easier by creating a one-stop shop for property registration. Paying Taxes: Burundi made paying taxes less costly for companies by reducing corporate income tax rate. Trading across Borders: Burundi made trading across borders easier by eliminating the requirement for a preshipment inspection clean report of ndings. DB2013 Starting a Business: Burundi made starting a business easier by eliminating the requirements to have company documents notarized, to publish information on new companies in a journal and to register new companies with the Ministry of Trade and Industry. Dealing with Construction Permits: Burundi made obtaining a construction permit easier by eliminating the requirement for a clearance from the Ministry of Health and reducing the cost of the geotechnical study. Registering Property: Burundi made property transfers faster by establishing a statutory time limit for processing property transfer requests at the land registry. Trading across Borders: Burundi reduced the time to trade across borders by enhancing its use of electronic data interchange systems, introducing a more e cient system for monitoring goods going through transit countries and improving border coordination with neighboring transit countries. DB2012 Dealing with Construction Permits: Burundi made dealing with construction permits easier by reducing the cost to obtain a geotechnical study. Protecting Minority Investors: Burundi strengthened investor protections by introducing new requirements for the approval of transactions between interested parties, by requiring greater corporate disclosure to the board of directors and in the annual report and by making it easier to sue directors in cases of prejudicial transactions between interested parties. Paying Taxes: Burundi made paying taxes easier for companies by reducing the payment frequency for social security contributions from monthly to quarterly. Resolving Insolvency: Burundi amended its commercial code to establish foreclosure procedures. Page 64   Paying Taxes: Burundi made paying taxes easier for companies by reducing the payment frequency for social security contributions 2018 to from monthly Doing Business quarterly. Burundi Resolving Insolvency: Burundi amended its commercial code to establish foreclosure procedures. DB2011 Paying Taxes: Burundi made paying taxes simpler by replacing the transactions tax with a value added tax. DB2009 Registering Property: Burundi made registering property cheaper by reducing the registration fee. These measures were in part motivated by the desire of these countries to pass the Millennium Challenge Corporation eligibility threshold. DB2008 Registering Property: Burundi made registering property less costly by reducing the registration fee. Page 65   DB2008 Registering Doing 2018Burundi Property: Business made registering property less costly by reducing the registration fee. Burundi Page 66