Region Pro le of East African Community (EAC) Doing Business 2018 Indicators Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Region Pro le of East African Community (EAC) 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 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 Page 2   second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework Doing Business 2018 forAFRICAN EAST insolvency COMMUNITY (EAC) 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. More about Doing Business (PDF, 5MB) The Business Environment For policy makers, knowing where their economy stands in the aggregate ranking on the ease of doing business is useful. Also useful is to know how it ranks compared with other economies in the region and compared with the regional average. Another perspective is provided by the regional average rankings on the topics included in the ease of doing business ranking and the distance to frontier scores. How economies in East African Community (EAC) rank on the ease of doing business Rwanda (Rank 41) 73.40 Kenya (Rank 80) 65.15 Page 3   world. More Doingabout 2018 (PDF, Doing Business Business 5MB) EAST AFRICAN COMMUNITY (EAC) The Business Environment For policy makers, knowing where their economy stands in the aggregate ranking on the ease of doing business is useful. Also useful is to know how it ranks compared with other economies in the region and compared with the regional average. Another perspective is provided by the regional average rankings on the topics included in the ease of doing business ranking and the distance to frontier scores. How economies in East African Community (EAC) rank on the ease of doing business Rwanda (Rank 41) 73.40 Kenya (Rank 80) 65.15 Uganda (Rank 122) 56.94 Tanzania (Rank 137) 54.04 Burundi (Rank 164) 46.92 Regional Average (Rank 109) 59.29 0 20 40 60 80 100 Distance to frontier score Note: Economies are ranked on their ease of doing business, from 1–190. The rankings are determined by sorting the aggregate distance to frontier scores on 10 topics, each consisting of several indicators, giving equal weight to each topic. The rankings for all economies are benchmarked to June 2017. 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. Source: Doing Business database Page 4   Rankings on Doing Business topics - East African Community (EAC) lowest performance and 100 represents the frontier. Doing Source: Business Doing 2018 Business EAST database AFRICAN COMMUNITY (EAC) Rankings on Doing Business topics - East African Community (EAC) Starting a Business (113) Resolving Insolvency (108) 0 Dealing with Construction Permits (142) 38 76 114 Enforcing Contracts (89) Getting Electricity (125) 152 190 Trading across Borders (133) Registering Property (98) Paying Taxes (100) Getting Credit (64) Protecting Minority Investors (89) Regional average ranking (Scale: Rank 190 center, Rank 1 outer edge) Source: Doing Business database. Distance to frontier scores on Doing Business topics - East African Community (EAC) Starting a Business (81.62) Resolving Insolvency (40.01) 100 Dealing with Construction Permits (58.94) 80 60 40 Enforcing Contracts (56.98) Getting Electricity (54.38) 20 0 Trading across Borders (53.88) Registering Property (63.08) Paying Taxes (69.04) Getting Credit (61.00) Protecting Minority Investors (54.00) (Scale: Score 0 center, Score 100 outer edge) Note: Economies are ranked on their ease of doing business, from 1–190. The rankings are determined by sorting the aggregate distance to frontier scores on 10 topics, each consisting of several indicators, giving equal weight to each topic. The rankings for all economies are benchmarked to June 2017. 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. Source: Doing Business database 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. Page 5   lowest performance and 100 represents the frontier. Doing Source: Business Doing 2018 Business EAST database AFRICAN COMMUNITY (EAC) Rankings on Doing Business topics - East African Community (EAC) Starting a Business (113) Resolving Insolvency (108) 0 Dealing with Construction Permits (142) 38 76 114 Enforcing Contracts (89) Getting Electricity (125) 152 190 Trading across Borders (133) Registering Property (98) Paying Taxes (100) Getting Credit (64) Protecting Minority Investors (89) Regional average ranking (Scale: Rank 190 center, Rank 1 outer edge) Source: Doing Business database. Distance to frontier scores on Doing Business topics - East African Community (EAC) Starting a Business (81.62) Resolving Insolvency (40.01) 100 Dealing with Construction Permits (58.94) 80 60 40 Enforcing Contracts (56.98) Getting Electricity (54.38) 20 0 Trading across Borders (53.88) Registering Property (63.08) Paying Taxes (69.04) Getting Credit (61.00) Protecting Minority Investors (54.00) (Scale: Score 0 center, Score 100 outer edge) Note: Economies are ranked on their ease of doing business, from 1–190. The rankings are determined by sorting the aggregate distance to frontier scores on 10 topics, each consisting of several indicators, giving equal weight to each topic. The rankings for all economies are benchmarked to June 2017. 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. Source: Doing Business database 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. Page 6   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. Source: Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Doing database Business 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 Pre-registration (for example, name verification or pay no bribes. reservation, notarization) Registration in economy’s largest business city The business: Post-registration (for example, social security - Is a limited liability company (or its legal equivalent). If there is more than one type of limited liability company in the economy, the most registration, company seal) common among domestic rms is chosen. Information on the most Obtaining approval from spouse to start business common form is obtained from incorporation lawyers or the statistical or leave home to register company o ce. Obtaining any gender-specific permission that can - Operates in the economy’s largest business city and the entire o ce impact company registration, company operations space is approximately 929 square meters (10,000 square feet). For 11 and process of getting national identity card economies the data are also collected for the second largest business Time required to complete each procedure city. (calendar days) - Is 100% domestically owned and has ve owners, none of whom is a Does not include time spent gathering information legal entity; and has a start-up capital of 10 times income per capita and Each procedure starts on a separate day (2 has a turnover of at least 100 times income per capita. - Performs general industrial or commercial activities, such as the procedures cannot start on the same day) production or sale of goods or services to the public. The business does Procedures fully completed online are recorded as not perform foreign trade activities and does not handle products ½ day subject to a special tax regime, for example, liquor or tobacco. It does not Procedure is considered completed once final use heavily polluting production processes. document is received - Leases the commercial plant or o ces and is not a proprietor of real No prior contact with officials estate and the amount of the annual lease for the o ce space is Cost required to complete each procedure (% equivalent to 1 times income per capita. of income per capita) - Does not qualify for investment incentives or any special bene ts. Official costs only, no bribes - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No professional fees unless services required by - Has a company deed 10 pages long. law or commonly used in practice Paid-in minimum capital (% of income per The owners: capita) - Have reached the legal age of majority. If there is no legal age of majority, they are assumed to be 30 years old. Funds deposited in a bank or with third party - Are sane, competent, in good health and have no criminal record. before registration or up to 3 months after - Are married and the marriage is monogamous and registered with the incorporation authorities. - Where the answer di ers according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population. Starting a Business Page 7   there is legal plurality), the answer used will be the one that applies to Doing Business 2018 the majority EAST AFRICAN COMMUNITY (EAC)of the population. Starting a Business Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in East African Community (EAC) to start a business? The global rankings of these economies on the ease of starting a business suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in East African Community (EAC) rank on the ease of starting a business Burundi (Rank 42) 91.94 Rwanda (Rank 78) 87.66 Kenya (Rank 117) 83.20 Tanzania (Rank 162) 73.03 Uganda (Rank 165) 72.25 Regional Average (Rank 113) 81.62 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Starting a Business The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to start a business in each economy in the region: the number of procedures, the time, the cost and the paid-in minimum capital requirement. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. Page 8   0 20 40 60 80 100 Distance to frontier score Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Starting a Business The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to start a business in each economy in the region: the number of procedures, the time, the cost and the paid-in minimum capital requirement. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. What it takes to start a business in economies in East African Community (EAC) Procedure – Men (number) Southern African Development Community (SADC) 7.9 Middle East and North Africa (MENA) 7.7 Regional Average 7.6 Sub-Saharan Africa (SSA) 7.6 OECD High Income 4.9 Uganda 13.0 Tanzania 11.0 Kenya 6.0 Rwanda 5.0 Burundi 3.0 0 2 4 6 8 10 12 14 Source: Doing Business database. Starting a Business Page 9   Time – Men (days) 0 2 4 6 8 10 12 14 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Starting a Business Time – Men (days) Southern African Development Community (SADC) 30.6 Sub-Saharan Africa (SSA) 24.0 Middle East and North Africa (MENA) 18.6 Regional Average 17.0 OECD High Income 8.5 Tanzania 28.0 Kenya 25.0 Uganda 24.0 Burundi 4.0 Rwanda 4.0 0 5 10 15 20 25 30 35 Source: Doing Business database. Starting a Business Cost – Men (% of income per capita) Sub-Saharan Africa (SSA) 49.9 Page 10   0 5 10 15 20 25 30 35 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Starting a Business Cost – Men (% of income per capita) Sub-Saharan Africa (SSA) 49.9 Regional Average 36.3 Southern African Development Community (SADC) 25.5 Middle East and North Africa (MENA) 18.8 OECD High Income 3.1 Rwanda 44.6 Tanzania 42.9 Burundi 33.9 Uganda 33.6 Kenya 26.3 0 10 20 30 40 50 60 Source: Doing Business database. Starting a Business Paid-in min. capital (% of income per capita) Sub-Saharan Africa (SSA) 25.6 Page 11   0 10 20 30 40 50 60 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Starting a Business Paid-in min. capital (% of income per capita) Sub-Saharan Africa (SSA) 25.6 Middle East and North Africa (MENA) 9.9 OECD High Income 8.7 Southern African Development Community (SADC) 0.7 Regional Average 0.0 Burundi 0.0 Kenya 0.0 Rwanda 0.0 Tanzania 0.0 Uganda 0.0 0 5 10 15 20 25 30 Source: Doing Business database. 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 Page 12   What the indicators measure Case study assumptions 0 5 10 15 20 25 30 Doing Business 2018 Source: Doing Business database. EAST AFRICAN COMMUNITY (EAC) 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 To make the data comparable across economies, several assumptions (number) about the construction company, the warehouse project and the utility connections are used. Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and The construction company (BuildCo): certificates - Is a limited liability company (or its legal equivalent) and operates in the Submitting all required notifications and receiving economy’s largest business city. For 11 economies the data are also collected for the second largest business city. all necessary inspections - Is 100% domestically and privately owned; has ve owners, none of Obtaining utility connections for water and whom is a legal entity. Has a licensed architect and a licensed engineer, sewerage both registered with the local association of architects or engineers. Registering and selling the warehouse after its BuildCo is not assumed to have any other employees who are technical completion or licensed experts, such as geological or topographical experts. Time required to complete each procedure - Owns the land on which the warehouse will be built and will sell the (calendar days) warehouse upon its completion. Does not include time spent gathering information Each procedure starts on a separate day—though The warehouse: procedures that can be fully completed online are - Will be used for general storage activities, such as storage of books or stationery. an exception to this rule - Will have two stories, both above ground, with a total constructed area Procedure is considered completed once final of approximately 1,300.6 square meters (14,000 square feet). Each oor document is received will be 3 meters (9 feet, 10 inches) high and will be located on a land plot No prior contact with officials of approximately 929 square meters (10,000 square feet) that is 100% Cost required to complete each procedure (% owned by BuildCo, and the warehouse is valued at 50 times income per of warehouse value) capita. Official costs only, no bribes - Will have complete architectural and technical plans prepared by a Building quality control index (0-15) licensed architect. If preparation of the plans requires such steps as obtaining further documentation or getting prior approvals from external Sum of the scores of six component indices: agencies, these are counted as procedures. Quality of building regulations (0-2) - Will take 30 weeks to construct (excluding all delays due to Quality control before construction (0-1) administrative and regulatory requirements). Quality control during construction (0-3) The water and sewerage connections: Quality control after construction (0-3) - Will be 150 meters (492 feet) from the existing water source and sewer Liability and insurance regimes (0-2) tap. If there is no water delivery infrastructure in the economy, a Professional certifications (0-4) borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. - Will have an average water use of 662 liters (175 gallons) a day and an 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. Dealing with Construction Permits Where do the region’s economies stand today? Page 13   How easy it is for entrepreneurs in economies in East African Community (EAC) to legally build a warehouse? The global rankings throughout the year; will be 1 inch in diameter for the water connection Doing Business 2018 and 4 inches EAST AFRICAN COMMUNITY (EAC)in diameter for the sewerage connection. Dealing with Construction Permits Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in East African Community (EAC) to legally build a warehouse? The global rankings of these economies on the ease of dealing with construction permits suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in East African Community (EAC) rank on the ease of dealing with construction permits Rwanda (Rank 112) 65.56 Kenya (Rank 124) 63.16 Uganda (Rank 148) 58.37 Tanzania (Rank 156) 56.43 Burundi (Rank 168) 51.16 Regional Average (Rank 142) 58.94 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Dealing with Construction Permits The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to comply with formalities to build a warehouse in each economy in the region: the number of procedures, the time and the cost. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. Page 14   0 20 40 60 80 100 Distance to frontier score Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Dealing with Construction Permits The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to comply with formalities to build a warehouse in each economy in the region: the number of procedures, the time and the cost. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. What it takes to comply with formalities to build a warehouse in economies in East African Community (EAC) Time (days) Southern African Development Community (SADC) 155.0 OECD High Income 154.6 Sub-Saharan Africa (SSA) 147.5 Middle East and North Africa (MENA) 132.1 Regional Average 129.6 Tanzania 184.0 Kenya 159.0 Uganda 122.0 Rwanda 113.0 Burundi 70.0 0 50 100 150 200 Source: Doing Business database. Dealing with Construction Permits Page 15   Cost (% of warehouse value) 0 50 100 150 200 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Dealing with Construction Permits Cost (% of warehouse value) Sub-Saharan Africa (SSA) 9.9 Regional Average 9.1 Southern African Development Community (SADC) 9.0 Middle East and North Africa (MENA) 4.3 OECD High Income 1.6 Rwanda 13.2 Burundi 12.5 Uganda 8.0 Tanzania 6.6 Kenya 5.0 0 2 4 6 8 10 12 14 Source: Doing Business database. Dealing with Construction Permits Building quality control index (0-15) Middle East and North Africa (MENA) 11.8 Page 16   0 2 4 6 8 10 12 14 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Dealing with Construction Permits Building quality control index (0-15) Middle East and North Africa (MENA) 11.8 OECD High Income 11.4 Regional Average 9.2 Southern African Development Community (SADC) 8.6 Sub-Saharan Africa (SSA) 8.0 Rwanda 14.0 Tanzania 12.0 Kenya 9.0 Uganda 8.0 Burundi 3.0 0 3 6 9 12 15 Source: Doing Business database. Getting Electricity This topic tracks the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. In addition to assessing e ciency of connection process, Reliability of supply and transparency of tari index measures reliability of power supply and 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 Page 17   To make the data comparable across economies, several assumptions 0 3 6 9 12 15 Doing Business 2018 Source: Doing Business database. EAST AFRICAN COMMUNITY (EAC) Getting Electricity This topic tracks the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. In addition to assessing e ciency of connection process, Reliability of supply and transparency of tari index measures reliability of power supply and 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 (number) are used. Submitting all relevant documents and obtaining all The warehouse: necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and receiving - Is located in the economy’s largest business city. For 11 economies the 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 purchasing material for these works is in an area with no physical constraints. For example, the property is Concluding any necessary supply contract and not near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst Time required to complete each procedure time. (calendar days) - Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square feet). The plot of land on which it is built is Is at least 1 calendar day 929 square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering information The electricity connection: Reflects the time spent in practice, with little follow- - Is a permanent one with a three-phase, four-wire Y connection with a up and no prior contact with officials subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of Cost required to complete each procedure (% 1, when 1 kVA = 1 kilowatt (kW). of income per capita) - Has a length of 150 meters. The connection is to either the low- or Official costs only, no bribes medium-voltage distribution network and is either overhead or underground, whichever is more common in the area where the Value added tax excluded warehouse is located and requires works that involve the crossing of a The reliability of supply and transparency of 10- meter road (such as by excavation or overhead lines) but are all tari s index (0-8) carried out on public land. There is no crossing of other owners’ private Duration and frequency of power outages (0–3) property because the warehouse has access to a road. Tools to monitor power outages (0–1) - Does not require work to install the internal wiring of the warehouse. Tools to restore power supply (0–1) This has already been completed up to and including the customer’s Regulatory monitoring of utilities’ performance (0– service panel or switchboard and the meter base. 1) Financial deterrents limiting outages (0–1) The monthly consumption: Transparency and accessibility of tariffs (0–1) - It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of Price of electricity (cents per kilowatt-hour)* capacity on average and that there are no electricity cuts (assumed for Price based on monthly bill for commercial simplicity reasons) and the monthly energy consumption is 26,880 warehouse in case study kilowatt-hours (kWh); hourly consumption is 112 kWh. *Note: Doing Business measures the price of - If multiple electricity suppliers exist, the warehouse is served by the electricity, but it is not included in the distance to cheapest supplier. frontier score nor the ranking on the ease of - Tari s e ective in March of the current year are used for calculation of getting electricity. the price of electricity for the warehouse. Although March has 31 days, for calculation purposes only 30 days are used. Getting Electricity Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in East African Community (EAC) to connect a warehouse to electricity? The global rankings of these economies on the ease of getting electricity suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. Page 18   getting electricity. the price of electricity for the warehouse. Although March has 31 days, Doing Business 2018 (EAC) purposes only 30 days are used. for calculation EAST AFRICAN COMMUNITY Getting Electricity Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in East African Community (EAC) to connect a warehouse to electricity? The global rankings of these economies on the ease of getting electricity suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in East African Community (EAC) rank on the ease of getting electricity Kenya (Rank 71) 76.68 Tanzania (Rank 82) 73.96 Rwanda (Rank 119) 60.69 Uganda (Rank 173) 34.11 Burundi (Rank 182) 26.45 Regional Average (Rank 125) 54.38 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Getting Electricity The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to get a new electricity connection in each economy in the region: the number of procedures, the time and the cost. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. Page 19   0 20 40 60 80 100 Distance to frontier score Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Getting Electricity The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to get a new electricity connection in each economy in the region: the number of procedures, the time and the cost. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. What it takes to get an electricity connection in economies in East African Community (EAC) Procedures (number) Southern African Development Community (SADC) 5.5 Sub-Saharan Africa (SSA) 5.3 Middle East and North Africa (MENA) 4.8 OECD High Income 4.7 Regional Average 4.4 Uganda 6.0 Burundi 5.0 Rwanda 4.0 Tanzania 4.0 Kenya 3.0 0 1 2 3 4 5 6 7 Source: Doing Business database. Getting Electricity Time (days) Page 20   0 1 2 3 4 5 6 7 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Getting Electricity Time (days) Southern African Development Community (SADC) 121.3 Sub-Saharan Africa (SSA) 115.3 Regional Average 92.8 Middle East and North Africa (MENA) 81.4 OECD High Income 79.1 Burundi 158.0 Tanzania 109.0 Kenya 97.0 Uganda 66.0 Rwanda 34.0 0 20 40 60 80 100 120 140 160 180 Source: Doing Business database. Getting Electricity Cost (% of income per capita) Regional Average 5463.4 Page 21   0 20 40 60 80 100 120 140 160 180 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Getting Electricity Cost (% of income per capita) Regional Average 5463.4 Sub-Saharan Africa (SSA) 3737.0 Southern African Development Community (SADC) 2256.0 Middle East and North Africa (MENA) 780.3 OECD High Income 63.0 Burundi 15517.3 Uganda 7508.4 Rwanda 2722.6 Tanzania 843.8 Kenya 724.7 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 Source: Doing Business database. Getting Electricity Reliability of supply and transparency of tariff index (0-8) OECD High Income 7.4 Page 22   0 2000 4000 6000 8000 10000 12000 14000 16000 18000 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Getting Electricity Reliability of supply and transparency of tariff index (0-8) OECD High Income 7.4 Middle East and North Africa (MENA) 4.2 Regional Average 1.8 Southern African Development Community (SADC) 1.3 Sub-Saharan Africa (SSA) 0.9 Tanzania 5.0 Kenya 4.0 Burundi 0.0 Rwanda 0.0 Uganda 0.0 0 1 2 3 4 5 6 7 8 Source: Doing Business database. 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. Page 23   What the indicators measure Case study assumptions 0 1 2 3 4 5 6 7 8 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. 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 To make the data comparable across economies, several assumptions immovable 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, paying The parties (buyer and seller): 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 business citya. city. 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 Each procedure starts on a separate day - though The property (fully owned by the seller): procedures that can be fully completed online are - Has a value of 50 times income per capita, which equals the sale price. - Is fully owned by the seller. an exception to this rule - Has no mortgages attached and has been under the same ownership for Procedure is considered completed once final the past 10 years. document is received - Is registered in the land registry or cadastre, or both, and is free of title No prior contact with officials disputes. Cost required to complete each procedure (% - Is located in a periurban commercial zone, and no rezoning is required. of property value) - Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-story warehouse of 929 square meters (10,000 Official costs only (such as administrative fees, square feet) is located on the land. The warehouse is 10 years old, is in duties and taxes). good condition, has no heating system and complies with all safety Value Added Tax, Capital Gains Tax and illicit standards, building codes and legal requirements. The property, payments are excluded consisting of land and building, will be transferred in its entirety. Quality of land administration index (0-30) - Will not be subject to renovations or additional construction following the purchase. Reliability of infrastructure index (0-8) - Has no trees, natural water sources, natural reserves or historical Transparency of information index (0–6) monuments of any kind. Geographic coverage index (0–8) - Will not be used for special purposes, and no special permits, such as for Land dispute resolution index (0–8) residential use, industrial plants, waste storage or certain types of Equal access to property rights index (-2–0) agricultural activities, are required. - Has no occupants, and no other party holds a legal interest in it. Registering Property Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in East African Community (EAC) to transfer property? The global rankings of these economies on the ease of registering property suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in East African Community (EAC) rank on the ease of registering property Page 24   Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Registering Property Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in East African Community (EAC) to transfer property? The global rankings of these economies on the ease of registering property suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in East African Community (EAC) rank on the ease of registering property Rwanda (Rank 2) 93.26 Burundi (Rank 95) 62.54 Uganda (Rank 124) 54.99 Kenya (Rank 125) 54.49 Tanzania (Rank 142) 50.13 Regional Average (Rank 98) 63.08 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Registering Property The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to complete a property transfer in each economy in the region: the number of procedures, the time and the cost. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. Page 25   0 20 40 60 80 100 Distance to frontier score Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Registering Property The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to complete a property transfer in each economy in the region: the number of procedures, the time and the cost. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. What it takes to register property in economies in East African Community (EAC) Procedures (number) Regional Average 7.0 Southern African Development Community (SADC) 6.2 Sub-Saharan Africa (SSA) 6.2 Middle East and North Africa (MENA) 5.7 OECD High Income 4.7 Uganda 10.0 Kenya 9.0 Tanzania 8.0 Burundi 5.0 Rwanda 3.0 0 2 4 6 8 10 12 Source: Doing Business database. Registering Property Time (days) Page 26   0 2 4 6 8 10 12 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Registering Property Time (days) Sub-Saharan Africa (SSA) 59.3 Southern African Development Community (SADC) 53.4 Regional Average 40.0 Middle East and North Africa (MENA) 30.3 OECD High Income 22.3 Tanzania 67.0 Kenya 61.0 Uganda 42.0 Burundi 23.0 Rwanda 7.0 0 10 20 30 40 50 60 70 80 Source: Doing Business database. Registering Property Cost (% of property value) Sub-Saharan Africa (SSA) 7.8 Page 27   0 10 20 30 40 50 60 70 80 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Registering Property Cost (% of property value) Sub-Saharan Africa (SSA) 7.8 Southern African Development Community (SADC) 6.8 Middle East and North Africa (MENA) 6.0 OECD High Income 4.2 Regional Average 3.5 Kenya 6.0 Tanzania 5.2 Burundi 3.1 Uganda 3.1 Rwanda 0.1 0 1 2 3 4 5 6 7 8 9 Source: Doing Business database. Registering Property Quality of the land administration index (0-30) OECD High Income 22.7 Page 28   0 1 2 3 4 5 6 7 8 9 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Registering Property Quality of the land administration index (0-30) OECD High Income 22.7 Middle East and North Africa (MENA) 13.4 Regional Average 13.3 Southern African Development Community (SADC) 11.0 Sub-Saharan Africa (SSA) 8.6 Rwanda 28.0 Kenya 16.0 Uganda 10.5 Tanzania 7.5 Burundi 4.5 0 5 10 15 20 25 30 Source: Doing Business database. 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 Page 29   Rights of borrowers and lenders through collateral through 2 sets of indicators. The depth of credit information index 0 5 10 15 20 25 30 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. 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 collateral through 2 sets of indicators. The depth of credit information index 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 Scope and accessibility of credit information lenders and thus facilitate lending. For each economy it is first distributed by credit bureaus and credit registries determined whether a unitary secured transactions system exists. Then (0-8) two case scenarios, case A and case B, are used to determine how a nonpossessory security interest is created, publicized and enforced Credit bureau coverage (% of adults) according to the law. Special emphasis is given to how the collateral Number of individuals and firms listed in largest registry operates (if registration of security interests is possible). The credit bureau as a percentage of adult population case scenarios involve a secured borrower, company ABC, and a secured Credit registry coverage (% of adults) lender, BizBank. Number of individuals and firms listed in credit In some economies the legal framework for secured transactions will registry as a percentage of adult population allow only case A or case B (not both) to apply. Both cases examine the same set 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. Getting Credit Where do the region’s economies stand today? How well do the credit information systems and collateral and bankruptcy laws in economies in East African Community (EAC) facilitate access to credit? The global rankings of these economies on the ease of getting credit suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in East African Community (EAC) rank on the ease of getting credit Page 30   ABC’s combined movable assets (or as much of ABC’s movable assets as Doing Business 2018 possible). EAST AFRICAN COMMUNITY ABC keeps ownership and possession of the assets. (EAC) Getting Credit Where do the region’s economies stand today? How well do the credit information systems and collateral and bankruptcy laws in economies in East African Community (EAC) facilitate access to credit? The global rankings of these economies on the ease of getting credit suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in East African Community (EAC) rank on the ease of getting credit Rwanda (Rank 6) 90.00 Kenya (Rank 29) 75.00 Tanzania (Rank 55) 65.00 Uganda (Rank 55) 65.00 Burundi (Rank 177) 10.00 Regional Average (Rank 64) 61.00 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Getting Credit Another way to assess how well regulations and institutions support lending and borrowing in the region is to see where the region stands in the distribution of scores across regions. The rst gure highlights the score on the strength of legal rights index in East African Community (EAC) and comparator regions. The second gure shows the same thing for the depth of credit information index. Page 31   0 20 40 60 80 100 Distance to frontier score Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Getting Credit Another way to assess how well regulations and institutions support lending and borrowing in the region is to see where the region stands in the distribution of scores across regions. The rst gure highlights the score on the strength of legal rights index in East African Community (EAC) and comparator regions. The second gure shows the same thing for the depth of credit information index. How strong are legal rights for borrowers and lenders Strength of legal rights index (0-12) OECD High Income 6.0 Regional Average 6.0 Sub-Saharan Africa (SSA) 5.1 Southern African Development Community (SADC) 4.9 Middle East and North Africa (MENA) 1.6 Rwanda 10.0 Kenya 7.0 Uganda 6.0 Tanzania 5.0 Burundi 2.0 0 2 4 6 8 10 12 Source: Doing Business database. Getting Credit Page 32   Depth of credit information index (0-8) 0 2 4 6 8 10 12 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Getting Credit Depth of credit information index (0-8) OECD High Income 6.6 Regional Average 6.2 Southern African Development Community (SADC) 5.4 Middle East and North Africa (MENA) 4.8 Sub-Saharan Africa (SSA) 3.0 Kenya 8.0 Rwanda 8.0 Tanzania 8.0 Uganda 7.0 Burundi 0.0 0 1 2 3 4 5 6 7 8 Source: Doing Business database. 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 Page 33   To make the data comparable across economies, a case study uses 0 1 2 3 4 5 6 7 8 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. 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 approval requirements for related-party several assumptions about the business and the transaction. transactions; Disclosure requirements for related- party transactions The business (Buyer): - Is a publicly traded corporation listed on the economy’s most important Extent of director liability index (0–10): Ability of stock exchange. If the number of publicly traded companies listed on minority shareholders to sue and hold interested that exchange is less than 10, or if there is no stock exchange in the directors liable for prejudicial related-party economy, it is assumed that Buyer is a large private company with transactions; Available legal remedies (damages, multiple shareholders. disgorgement of profits, fines, imprisonment, - Has a board of directors and a chief executive o cer (CEO) who may rescission of the transaction) legally act on behalf of Buyer where permitted, even if this is not Ease of shareholder suits index (0–10): Access to speci cally required by law. internal corporate documents; Evidence obtainable - Has a supervisory board (applicable to economies with a two-tier board during trial and allocation of legal expenses system) on which 60% of the shareholder-elected members have been Extent of conflict of interest regulation index appointed by Mr. James, who is Buyer’s controlling shareholder and a (0–10): Simple average of the extent of disclosure, member of Buyer’s board of directors. extent of director liability and ease of shareholder - Has not adopted any bylaws or articles of association that di er from indices default minimum standards and does not follow any nonmandatory codes, 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 compensation, audits and financial prospects stores. Extent of shareholder governance index (0–10): - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks Simple average of the extent of shareholders to expand Buyer’s distribution of its food products, a proposal to which rights, extent of ownership and control and extent Buyer agrees. The price is equal to 10% of Buyer’s assets and is higher than the market value. of corporate transparency indices - The proposed transaction is part of the company’s ordinary course of Strength of minority investor protection index business and is not outside the authority of the company. (0–10): Simple average of the extent of conflict of - Buyer enters into the transaction. All required approvals are obtained, interest regulation and extent of shareholder and all required disclosures made (that is, the transaction is not governance indices fraudulent). - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Protecting Minority Investors Where do the region’s economies stand today? How strong are investor protections against self-dealing in economies in East African Community (EAC)? The global rankings of these economies on the strength of investor protection index suggest an answer. While the indicator does not measure all aspects related to the protection of minority investors, a higher ranking does indicate that an economy’s regulations o er stronger investor protections against self-dealing in the areas measured. How economies in East African Community (EAC) rank on the ease of protecting minority investors Page 34   - The transaction causes damages to Buyer. Shareholders sue Mr. James Doing Business 2018 other parties that approved the transaction. and the(EAC) EAST AFRICAN COMMUNITY Protecting Minority Investors Where do the region’s economies stand today? How strong are investor protections against self-dealing in economies in East African Community (EAC)? The global rankings of these economies on the strength of investor protection index suggest an answer. While the indicator does not measure all aspects related to the protection of minority investors, a higher ranking does indicate that an economy’s regulations o er stronger investor protections against self-dealing in the areas measured. How economies in East African Community (EAC) rank on the ease of protecting minority investors Rwanda (Rank 16) 73.33 Kenya (Rank 62) 58.33 Uganda (Rank 108) 50.00 Tanzania (Rank 129) 45.00 Burundi (Rank 132) 43.33 Regional Average (Rank 89) 54.00 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Protecting Minority Investors The strength of minority investor protection index is the average of the extent of con ict of interest regulation index and the extent of shareholder governance index. The index ranges from 0 to 10, rounded to the nearest decimal place, with higher Page 35   values indicating stronger minority investor protections. The following two gures highlight the scores on the various minority 0 20 40 60 80 100 Distance to frontier score Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Protecting Minority Investors The strength of minority investor protection index is the average of the extent of con ict of interest regulation index and the extent of shareholder governance index. The index ranges from 0 to 10, rounded to the nearest decimal place, with higher values indicating stronger minority investor protections. The following two gures highlight the scores on the various minority investor protection indices in East African Community (EAC). Comparing the scores across the region and with averages both for the region and for comparator regions can provide useful insights. How extensive are con ict of interest regulations Extent of conflict of interest regulation index (0-10) OECD High Income 6.4 Regional Average 5.9 Southern African Development Community (SADC) 5.7 Middle East and North Africa (MENA) 4.9 Sub-Saharan Africa (SSA) 4.8 Rwanda 7.0 Kenya 6.7 Burundi 5.7 Tanzania 5.3 Uganda 5.0 0 2 4 6 8 10 Source: Doing Business database. Protecting Minority Investors Page 36   0 2 4 6 8 10 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Protecting Minority Investors Extent of shareholder governance index (0-10) OECD High Income 6.4 Regional Average 4.9 Middle East and North Africa (MENA) 4.7 Southern African Development Community (SADC) 4.7 Sub-Saharan Africa (SSA) 4.0 Rwanda 7.7 Kenya 5.0 Uganda 5.0 Tanzania 3.7 Burundi 3.0 0 2 4 6 8 10 Source: Doing Business database. 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 Page 37   compliance cost 0 2 4 6 8 10 Doing Business 2018 Source: Doing Business database. EAST AFRICAN COMMUNITY (EAC) 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 contributions a medium size company must pay in a year, and measures and 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, sales with the requirements of post ling processes and time waiting. tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are Time required to comply with 3 major taxes used: (hours per year) - TaxpayerCo is a medium-size business that started operations on January 1, 2015. It produces ceramic flowerpots and sells them at Collecting information, computing tax payable retail. All taxes and contributions recorded are paid in the second year of Completing tax return, filing with agencies operation (calendar year 2016). Taxes and mandatory contributions are Arranging payment or withholding measured at all levels of government. Preparing separate tax accounting books, if required The VAT refund process: Total tax and contribution rate (% of pro t - In June 2016, TaxpayerCo. makes a large capital purchase: the value of before all taxes) the machine is 65 times income per capita of the economy. Sales are equally spread per month (1,050 times income per capita divided by 12) Profit or corporate income tax and cost of goods sold are equally expensed per month (875 times Social contributions, labor taxes paid by employer income per capita divided by 12). The machinery seller is registered for Property and property transfer taxes VAT and excess input VAT incurred in June will be fully recovered after Dividend, capital gains, financial transactions taxes four consecutive months if the VAT rate is the same for inputs, sales and Waste collection, vehicle, road and other taxes the machine and the tax reporting period is every month. Input VAT will Post ling Index exceed Output VAT in June 2016. Time to comply with a VAT refund The corporate income tax audit process: Time to receive a VAT refund - An error in calculation of income tax liability (for example, use of Time to comply with a corporate income tax audit incorrect tax depreciation rates, or incorrectly treating an expense as tax Time to complete a corporate income tax audit deductible) leads to an incorrect income tax return and a corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily noti ed the tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax return, but within the tax assessment period. Paying Taxes Where do the region’s economies stand today? What is the administrative burden of complying with taxes in economies in East African Community (EAC) —and how much do rms pay in taxes? The global rankings of these economies on the ease of paying taxes o er useful information for assessing the tax compliance burden for businesses. The average ranking of the region provides a useful benchmark. How economies in East African Community (EAC) rank on the ease of paying taxes Page 38   submits corrected information after the deadline for submitting the Doing Business 2018 annual tax EAST AFRICAN COMMUNITY return, but within the tax assessment period. (EAC) Paying Taxes Where do the region’s economies stand today? What is the administrative burden of complying with taxes in economies in East African Community (EAC) —and how much do rms pay in taxes? The global rankings of these economies on the ease of paying taxes o er useful information for assessing the tax compliance burden for businesses. The average ranking of the region provides a useful benchmark. How economies in East African Community (EAC) rank on the ease of paying taxes Rwanda (Rank 31) 84.60 Uganda (Rank 84) 73.10 Kenya (Rank 92) 71.67 Burundi (Rank 138) 60.34 Tanzania (Rank 154) 55.49 Regional Average (Rank 100) 69.04 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Paying Taxes The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to comply with tax regulations in each economy in the region—the number of payments per year and the time required to prepare, and le and pay taxes the 3 major taxes (corporate income tax, VAT or sales tax and labor taxes and mandatory contributions)—as well Page 39   as the total tax rate. Comparing these indicators across the region and with averages both for the region and for comparator 0 20 40 60 80 100 Distance to frontier score Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Paying Taxes The indicators underlying the rankings may be more revealing. Data collected by Doing Business show what it takes to comply with tax regulations in each economy in the region—the number of payments per year and the time required to prepare, and le and pay taxes the 3 major taxes (corporate income tax, VAT or sales tax and labor taxes and mandatory contributions)—as well as the total tax rate. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. How easy is it to pay taxes in economies in East African Community (EAC) - and what are the total tax rates Payments (number per year) Sub-Saharan Africa (SSA) 37.2 Southern African Development Community (SADC) 31.3 Regional Average 30.0 Middle East and North Africa (MENA) 17.9 OECD High Income 10.9 Tanzania 60.0 Uganda 31.0 Kenya 26.0 Burundi 25.0 Rwanda 8.0 0 10 20 30 40 50 60 70 Source: Doing Business database. Paying Taxes Page 40   0 10 20 30 40 50 60 70 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Paying Taxes Time (hours per year) Sub-Saharan Africa (SSA) 280.8 Southern African Development Community (SADC) 208.7 Middle East and North Africa (MENA) 203.3 Regional Average 182.8 OECD High Income 160.7 Burundi 232.0 Tanzania 207.0 Uganda 195.0 Kenya 185.5 Rwanda 94.5 0 50 100 150 200 250 300 Source: Doing Business database. Paying Taxes Total tax and contribution rate (% of profit) Sub-Saharan Africa (SSA) 46.8 Page 41   0 50 100 150 200 250 300 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Paying Taxes Total tax and contribution rate (% of profit) Sub-Saharan Africa (SSA) 46.8 OECD High Income 40.1 Regional Average 38.0 Middle East and North Africa (MENA) 32.5 Southern African Development Community (SADC) 31.9 Tanzania 44.1 Burundi 41.5 Kenya 37.4 Uganda 33.7 Rwanda 33.2 0 10 20 30 40 50 Source: Doing Business database. Paying Taxes Postfiling index (0-100) OECD High Income 83.5 Page 42   0 10 20 30 40 50 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Paying Taxes Postfiling index (0-100) OECD High Income 83.5 Southern African Development Community (SADC) 65.9 Regional Average 58.7 Sub-Saharan Africa (SSA) 54.4 Middle East and North Africa (MENA) 50.6 Uganda 72.3 Tanzania 67.2 Rwanda 63.7 Kenya 62.0 Burundi 28.2 0 20 40 60 80 100 Source: Doing Business database. 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. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptionsPage 43   are made about the traded goods and the transactions: 0 20 40 60 80 100 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. 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. 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 or Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 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 hours. practice, including electronic submissions of information as well as non-shipment-specific Cost: Insurance cost and informal payments for which no receipt is issued documents necessary to complete the trade are excluded from the costs recorded. Costs are reported in U.S. dollars. Border compliance Contributors are asked to convert local currency into U.S. dollars based on Customs clearance and inspections the exchange rate prevailing on the day they answer the questionnaire. Contributors are private sector experts in international trade logistics and Inspections by other agencies (if applied to more are informed about exchange rates. than 10% of shipments) Port or border handling Assumptions of the case study: - For all 190 economies covered by Doing Processing of documents during clearance, Business, it is assumed a shipment is in a warehouse in the largest inspections and port or border handling. business city of the exporting economy and travels to a warehouse in the Domestic transport largest business city of the importing economy. - It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) Loading and unloading of shipment at warehouse, from its natural import partner—the economy from which it imports the dry port or border largest value (price times quantity) of auto parts. It is assumed each Transport by most widely used mode between economy exports the product of its comparative advantage (defined by the warehouse and terminal or dry port largest export value) to its natural export partner—the economy that is the Traffic delays and road police checks while 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 shipment is en route 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. Trading across Borders Where do the region’s economies stand today? How easy it is for businesses in economies in East African Community (EAC) to export and import goods? The global rankings of these economies on the ease of trading across borders suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in East African Community (EAC) rank on the ease of trading across borders Page 44   of agriculture or industry, national security agencies and any other government authorities. Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Trading across Borders Where do the region’s economies stand today? How easy it is for businesses in economies in East African Community (EAC) to export and import goods? The global rankings of these economies on the ease of trading across borders suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in East African Community (EAC) rank on the ease of trading across borders Rwanda (Rank 87) 72.44 Kenya (Rank 106) 67.63 Uganda (Rank 127) 62.08 Burundi (Rank 164) 47.02 Tanzania (Rank 182) 20.21 Regional Average (Rank 133) 53.88 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Trading across Borders The indicators reported here are for trading a shipment of goods by the most widely used mode of transport (whether sea, land, air or some combination of these). The information on the time and cost to complete export and import is collected from local freight forwarders, customs brokers and traders. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. Page 45   0 20 40 60 80 100 Distance to frontier score Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Trading across Borders The indicators reported here are for trading a shipment of goods by the most widely used mode of transport (whether sea, land, air or some combination of these). The information on the time and cost to complete export and import is collected from local freight forwarders, customs brokers and traders. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. What it takes to trade across borders in economies in East African Community (EAC) Time to export: Border compliance (hours) Southern African Development Community (SADC) 104.1 Sub-Saharan Africa (SSA) 100.1 Regional Average 67.4 Middle East and North Africa (MENA) 62.6 OECD High Income 12.7 Rwanda 97.0 Tanzania 96.0 Uganda 64.0 Burundi 59.0 Kenya 21.0 0 20 40 60 80 100 120 Source: Doing Business database. Trading across Borders Page 46   Cost to export: Border compliance (USD) 0 20 40 60 80 100 120 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Trading across Borders Cost to export: Border compliance (USD) Southern African Development Community (SADC) 599.0 Sub-Saharan Africa (SSA) 592.2 Middle East and North Africa (MENA) 464.5 Regional Average 366.2 OECD High Income 149.9 Tanzania 1160.0 Uganda 209.0 Rwanda 183.0 Kenya 143.0 Burundi 136.0 0 200 400 600 800 1000 1200 1400 Source: Doing Business database. Trading across Borders Time to export: Documentary compliance (hours) Southern African Development Community (SADC) 105.7 Page 47   0 200 400 600 800 1000 1200 1400 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Trading across Borders Time to export: Documentary compliance (hours) Southern African Development Community (SADC) 105.7 Sub-Saharan Africa (SSA) 87.8 Middle East and North Africa (MENA) 74.3 Regional Average 65.6 OECD High Income 2.6 Burundi 120.0 Tanzania 96.0 Uganda 51.0 Rwanda 42.0 Kenya 19.0 0 20 40 60 80 100 120 140 Source: Doing Business database. Trading across Borders Cost to export: Documentary compliance (USD) Southern African Development Community (SADC) 344.7 Page 48   0 20 40 60 80 100 120 140 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Trading across Borders Cost to export: Documentary compliance (USD) Southern African Development Community (SADC) 344.7 Middle East and North Africa (MENA) 243.6 Sub-Saharan Africa (SSA) 215.2 Regional Average 165.6 OECD High Income 35.5 Tanzania 275.0 Kenya 191.0 Burundi 150.0 Rwanda 110.0 Uganda 102.0 0 50 100 150 200 250 300 350 400 Source: Doing Business database. Trading across Borders Time to import: Border compliance (hours) Regional Average 195.2 Page 49   0 50 100 150 200 250 300 350 400 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Trading across Borders Time to import: Border compliance (hours) Regional Average 195.2 Sub-Saharan Africa (SSA) 136.4 Southern African Development Community (SADC) 126.8 Middle East and North Africa (MENA) 112.3 OECD High Income 8.7 Tanzania 402.0 Kenya 180.0 Burundi 154.0 Uganda 154.0 Rwanda 86.0 0 50 100 150 200 250 300 350 400 450 Source: Doing Business database. Trading across Borders Cost to import: Border compliance (USD) Sub-Saharan Africa (SSA) 686.9 Page 50   0 50 100 150 200 250 300 350 400 450 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Trading across Borders Cost to import: Border compliance (USD) Sub-Saharan Africa (SSA) 686.9 Regional Average 664.2 Southern African Development Community (SADC) 623.3 Middle East and North Africa (MENA) 540.8 OECD High Income 111.6 Tanzania 1350.0 Kenya 833.0 Burundi 444.0 Uganda 412.0 Rwanda 282.0 0 200 400 600 800 1000 1200 1400 1600 Source: Doing Business database. Trading across Borders Time to import: Documentary compliance (hours) Regional Average 133.2 Page 51   0 200 400 600 800 1000 1200 1400 1600 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Trading across Borders Time to import: Documentary compliance (hours) Regional Average 133.2 Sub-Saharan Africa (SSA) 103.0 Middle East and North Africa (MENA) 94.5 Southern African Development Community (SADC) 67.8 OECD High Income 3.9 Tanzania 240.0 Burundi 180.0 Uganda 138.0 Kenya 60.0 Rwanda 48.0 0 50 100 150 200 250 300 Source: Doing Business database. Trading across Borders Cost to import: Documentary compliance (USD) Regional Average 386.4 Page 52   0 50 100 150 200 250 300 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Trading across Borders Cost to import: Documentary compliance (USD) Regional Average 386.4 Sub-Saharan Africa (SSA) 300.2 Middle East and North Africa (MENA) 266.2 Southern African Development Community (SADC) 219.1 OECD High Income 25.7 Burundi 1025.0 Tanzania 375.0 Uganda 296.0 Rwanda 121.0 Kenya 115.0 0 200 400 600 800 1000 1200 Source: Doing Business database. 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 Page 53   The dispute in the case study involves the breach of a sales contract 0 200 400 600 800 1000 1200 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. 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 dispute in the case study involves the breach of a sales contract the 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 Time to enforce the judgment To make the data comparable across economies, Doing Business uses Cost required to enforce a contract through several assumptions about the case: the courts (% of claim) - The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both located in the economy’s largest business city. Attorney fees For 11 economies the data are also collected for the second largest Court fees business city. Enforcement fees - The buyer orders custom-made goods, then fails to pay. Quality of judicial processes index (0-18) - The value of the dispute is 200% of the income per capita or the Court structure and proceedings (-1-5) equivalent in local currency of USD 5,000, whichever is greater. - The seller sues the buyer before the court with jurisdiction over Case management (0-6) commercial cases worth 200% of income per capita or $5,000. Court automation (0-4) - The seller requests a pretrial attachment to secure the claim. Alternative dispute resolution (0-3) - The dispute on the quality of the goods requires an expert opinion. - The judge decides in favor of the seller; there is no appeal. - The seller enforces the judgment through a public sale of the buyer’s movable assets. Enforcing Contracts Where do the region’s economies stand today? How e cient is the process of resolving a commercial dispute through the courts in economies in East African Community (EAC)? The global rankings of these economies on the ease of enforcing contracts suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in East African Community (EAC) rank on the ease of enforcing contracts Tanzania (Rank 58) 61.66 Uganda (Rank 64) 60.60 Rwanda (Rank 85) 58.62 Page 54   - The seller enforces the judgment through a public sale of the buyer’s Doing Business 2018 movable EAST AFRICAN COMMUNITY assets. (EAC) Enforcing Contracts Where do the region’s economies stand today? How e cient is the process of resolving a commercial dispute through the courts in economies in East African Community (EAC)? The global rankings of these economies on the ease of enforcing contracts suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark. How economies in East African Community (EAC) rank on the ease of enforcing contracts Tanzania (Rank 58) 61.66 Uganda (Rank 64) 60.60 Rwanda (Rank 85) 58.62 Kenya (Rank 90) 58.27 Burundi (Rank 150) 45.74 Regional Average (Rank 89) 56.98 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Enforcing Contracts The indicators underlying the rankings may also be revealing. Data collected by Doing Business show what it takes to enforce a contract through the courts in each economy in the region: the time, the cost and quality of judicial processes index. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. Page 55   0 20 40 60 80 100 Distance to frontier score Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Enforcing Contracts The indicators underlying the rankings may also be revealing. Data collected by Doing Business show what it takes to enforce a contract through the courts in each economy in the region: the time, the cost and quality of judicial processes index. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. What it takes to enforce a contract through the courts in economies in East African Community (EAC) Time (days) Southern African Development Community (SADC) 700.7 Sub-Saharan Africa (SSA) 656.8 Middle East and North Africa (MENA) 638.5 OECD High Income 577.8 Regional Average 506.4 Burundi 832.0 Tanzania 515.0 Uganda 490.0 Kenya 465.0 Rwanda 230.0 0 100 200 300 400 500 600 700 800 900 Source: Doing Business database. Enforcing Contracts Cost (% of claim value) Page 56   0 100 200 300 400 500 600 700 800 900 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Enforcing Contracts Cost (% of claim value) Southern African Development Community (SADC) 48.0 Sub-Saharan Africa (SSA) 44.0 Regional Average 41.7 Middle East and North Africa (MENA) 24.4 OECD High Income 21.6 Rwanda 82.7 Kenya 41.8 Burundi 38.6 Uganda 31.3 Tanzania 14.3 0 10 20 30 40 50 60 70 80 90 Source: Doing Business database. Enforcing Contracts Quality of judicial processes index (0-18) OECD High Income 11.0 Page 57   0 10 20 30 40 50 60 70 80 90 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Enforcing Contracts Quality of judicial processes index (0-18) OECD High Income 11.0 Regional Average 8.9 Southern African Development Community (SADC) 7.4 Sub-Saharan Africa (SSA) 6.5 Middle East and North Africa (MENA) 5.8 Rwanda 14.0 Kenya 9.0 Uganda 8.5 Burundi 7.0 Tanzania 6.0 0 2 4 6 8 10 12 14 16 18 Source: Doing Business database. 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. Page 58   0 2 4 6 8 10 12 14 16 18 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. 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 Cost required to recover debt (% of debtor’s - A hotel located in the largest city (or cities) has 201 employees and 50 estate) suppliers. The hotel experiences nancial di culties. - The value of the hotel is 100% of the income per capita or the Measured as percentage of estate value equivalent in local currency of USD 200,000, whichever is greater. Court fees - 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 Whether business continues operating as a going index tests whether economies adopted internationally accepted good concern or business assets are sold piecemeal practices in four areas: commencement of proceedings, management of Recovery rate for creditors debtor’s assets, reorganization proceedings and creditor participation. 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) Resolving Insolvency Where do the region’s economies stand today? How e cient are insolvency proceedings in economies in East African Community (EAC)? The global rankings of these economies on the ease of resolving insolvency suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark for assessing the e ciency of insolvency proceedings. Speed, low costs and continuation of viable businesses characterize the top performing economies. How economies in East African Community (EAC) rank on the ease of resolving insolvency Page 59   Reorganization proceedings index (0-3) Doing Business Creditor 2018 participation EAST AFRICAN COMMUNITY (EAC) index (0-4) Resolving Insolvency Where do the region’s economies stand today? How e cient are insolvency proceedings in economies in East African Community (EAC)? The global rankings of these economies on the ease of resolving insolvency suggest an answer. The average ranking of the region and comparator regions provide a useful benchmark for assessing the e ciency of insolvency proceedings. Speed, low costs and continuation of viable businesses characterize the top performing economies. How economies in East African Community (EAC) rank on the ease of resolving insolvency Rwanda (Rank 78) 47.79 Kenya (Rank 95) 43.11 Tanzania (Rank 108) 39.52 Uganda (Rank 113) 38.94 Burundi (Rank 144) 30.71 Regional Average (Rank 108) 40.01 0 20 40 60 80 100 Distance to frontier score Source: Doing Business database. Resolving Insolvency The indicators underlying the rankings may be more revealing. Data collected by Doing Business show the average recovery rate and the average strength of insolvency framework index. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. Page 60   0 20 40 60 80 100 Distance to frontier score Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Resolving Insolvency The indicators underlying the rankings may be more revealing. Data collected by Doing Business show the average recovery rate and the average strength of insolvency framework index. Comparing these indicators across the region and with averages both for the region and for comparator regions can provide useful insights. How e cient is the insolvency process in economies in East African Community (EAC) Recovery rate (cents on the dollar) OECD High Income 71.2 Southern African Development Community (SADC) 30.0 Middle East and North Africa (MENA) 25.5 Regional Average 22.7 Sub-Saharan Africa (SSA) 20.3 Uganda 37.5 Kenya 27.9 Tanzania 21.2 Rwanda 19.1 Burundi 7.7 0 20 40 60 80 100 Source: Doing Business database. Business Reforms Starting a Business Page 61   In the year ending June 1, 2017, 137 economies implemented 283 total reforms across the di erent areas measured by Doing 0 20 40 60 80 100 Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) Source: Doing Business database. Business Reforms Starting a Business In the year ending June 1, 2017, 137 economies implemented 283 total reforms across the di erent areas measured by Doing Business, an increase of over 20% from last year. 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 implemented in East African Community (EAC) since Doing Business 2008. DB Year Economy Reform Burundi made starting a business more expensive by increasing the cost of DB2018 Burundi registering a business. Kenya made starting a business easier by merging procedures required to start- DB2018 Kenya up and formally operate a business. Uganda made starting a business easier by eliminating the requirement that a DB2017 Uganda commissioner of oaths must sign compliance declarations. Rwanda made starting a business easier by improving the online registration DB2017 Rwanda one-stop shop and streamlining post-registration procedures. Kenya made starting a business easier by removing stamp duty fees required for the nominal capital, memorandum and articles of association . Kenya also DB2017 Kenya eliminated requirements to sign compliance declarations before a commissioner of oaths. However, Kenya also made starting a business more expensive by introducing a flat fee for company incorporation. Kenya made starting a business easier by reducing the time it takes to assess DB2016 Kenya and pay stamp duty. Rwanda made starting a business easier by eliminating the need for new DB2016 Rwanda companies to open a bank account in order to register for VAT. Uganda made starting a business easier by introducing an online system for DB2016 Uganda obtaining a trading license and by reducing business incorporation fees. DB2015 Tanzania Tanzania made starting a business more difficult by increasing registration fees. Rwanda made starting a business more difficult by requiring companies to buy DB2015 Rwanda an electronic billing machine from a certified supplier. Burundi made starting a business easier by allowing registration with the Ministry DB2014 Burundi of Labor at the one-stop shop and by speeding up the process of obtaining the registration certificate. Rwanda made starting a business easier by reducing the time required to obtain DB2014 Rwanda a registration certificate. Tanzania made starting a business easier by eliminating the requirement for DB2013 Tanzania inspections by health, town and land officers as a prerequisite for a business license. Burundi made starting a business easier by eliminating the requirements to have DB2013 Burundi company documents notarized, to publish information on new companies in a journal and to register new companies with the Ministry of Trade and Industry. Rwanda made starting a business easier by reducing the business registration DB2012 Rwanda fees. Page 62   Burundi made starting a business easier by eliminating the requirements to have Doing DB2013 BurundiEAST AFRICANcompany Business 2018 COMMUNITY (EAC) documents notarized, to publish information on new companies in a journal and to register new companies with the Ministry of Trade and Industry. Rwanda made starting a business easier by reducing the business registration DB2012 Rwanda fees. Uganda introduced changes that added time to the process of obtaining a DB2012 Uganda business license, slowing business start-up. But it simplified registration for a tax identification number and for value added tax by introducing an online system. Uganda made it more difficult to start a business by increasing the trade licensing DB2011 Uganda fees. Kenya eased business start-up by reducing the time it takes to get the DB2011 Kenya memorandum and articles of association stamped, merging the tax and value added tax registration procedures and digitizing records at the registrar. Dealing with Construction Permits DB Year Economy Reform Kenya made dealing with construction permits less expensive by eliminating fees DB2018 Kenya for clearances from the National Environment Management Authority (NEMA) and the National Construction Authority. Rwanda increased quality control during construction by introducing risk-based DB2018 Rwanda inspections. Tanzania made dealing with construction permits easier by implementing a one- DB2018 Tanzania stop shop and streamlining the building permit process. Rwanda made dealing with construction permits more cumbersome and expensive by introducing new requirements to obtain a building permit. It also DB2017 Rwanda strengthen the quality control index by implementing the qualifications required for architects and engineers. Kenya made dealing with construction permits more difficult by requiring an DB2016 Kenya additional approval before issuance of the building permit and by increasing the costs for both water and sewerage connections Rwanda made dealing with construction permits easier by adopting a new DB2016 Rwanda building code and new urban planning regulations. Rwanda made dealing with construction permits easier by eliminating the fee for DB2015 Rwanda obtaining a freehold title and by streamlining the process for obtaining an occupancy permit. Kenya made dealing with construction permits more costly by increasing the DB2015 Kenya building permit fees. Burundi made dealing with construction permits easier by establishing a one- DB2014 Burundi stop shop for obtaining building permits and utility connections. Rwanda made dealing with construction permits easier and less costly by DB2014 Rwanda reducing the building permit fees, implementing an electronic platform for building permit applications and streamlining procedures. Tanzania made dealing with construction permits more expensive by increasing DB2013 Tanzania the cost to obtain a building permit. Burundi made obtaining a construction permit easier by eliminating the Page 63   DB2013 Burundi requirement for a clearance from the Ministry of Health and reducing the cost of building permit applications and streamlining procedures. Doing Business 2018 COMMUNITY EAST AFRICANTanzania (EAC) with construction permits more expensive by increasing made dealing DB2013 Tanzania the cost to obtain a building permit. Burundi made obtaining a construction permit easier by eliminating the DB2013 Burundi requirement for a clearance from the Ministry of Health and reducing the cost of the geotechnical study. Burundi made dealing with construction permits easier by reducing the cost to DB2012 Burundi obtain a geotechnical study. Rwanda made dealing with construction permits easier by passing new building DB2011 Rwanda regulations at the end of April 2010 and implementing new time limits for the issuance of various permits. Getting Electricity DB Year Economy Reform Kenya improved the reliability of electricity by investing in its distribution lines DB2018 Kenya and transformers and by setting up a specialized squad to restore power when outages occur. Kenya streamlined the process of getting electricity by introducing the use of a geographic information system which eliminates the need to conduct a site visit, DB2017 Kenya thereby reducing the time and interactions needed to obtain an electricity connection. The utility in Kenya reduced delays for new connections by enforcing service DB2016 Kenya delivery timelines and hiring contractors for meter installation. The utility in Uganda reduced delays for new electricity connections by deploying DB2016 Uganda more customer service engineers and reducing the time needed for the inspection and meter installation. In Rwanda the electricity company made getting electricity less costly by DB2015 Rwanda eliminating several fees. Burundi made getting electricity easier by eliminating the electricity utility’s DB2014 Burundi monopoly on the sale of materials needed for new connections and by dropping the processing fee for new connections. Rwanda made getting electricity easier by reducing the cost of obtaining a new DB2013 Rwanda connection. Registering Property DB Year Economy Reform Rwanda made registering property easier by implementing online services to DB2018 Rwanda facilitate the registration of property transfers. Tanzania made registering property more expensive by increasing the land and DB2018 Tanzania property registration fee. Rwanda made it easier to register property by introducing effective time limits DB2017 Rwanda and increasing the transparency of the land administration system. Kenya made Registering property easier by increasing the transparency at its DB2017 Kenya land registry and cadastre. Kenya made property transfers faster by improving electronic document DB2016 Kenya Page 64   management at the land registry and introducing a unified form for registration. and increasing the transparency of the land administration system. Doing Business 2018 COMMUNITY EAST AFRICANKenya (EAC) property easier by increasing the transparency at its made Registering DB2017 Kenya land registry and cadastre. Kenya made property transfers faster by improving electronic document DB2016 Kenya management at the land registry and introducing a unified form for registration. Burundi made transferring property easier by creating a one-stop shop for DB2014 Burundi property registration. Rwanda made transferring property easier by eliminating the requirement to DB2014 Rwanda obtain a tax clearance certificate and by implementing the web-based Land Administration Information System for processing land transactions. Uganda made transferring property easier by eliminating the need to have DB2014 Uganda instruments of land transfer physically embossed to certify payment of the stamp duty. Uganda made transferring property more difficult by introducing a requirement for property purchasers to obtain an income tax certificate before registration, resulting in delays at the Uganda Revenue Authority and the Ministry of Finance. DB2013 Uganda At the same time, Uganda made it easier by digitizing records at the title registry, increasing efficiency at the assessor’s office and making it possible for more banks to accept the stamp duty payment. Burundi made property transfers faster by establishing a statutory time limit for DB2013 Burundi processing property transfer requests at the land registry. Rwanda made transferring property more expensive by enforcing the checking DB2012 Rwanda of the capital gains tax. Uganda increased the efficiency of property transfers by establishing DB2012 Uganda performance standards and recruiting more officials at the land office. Getting Credit DB Year Economy Reform Kenya improved access to credit information by starting to distribute data from DB2018 Kenya two utility companies. The credit bureau in Tanzania expanded credit bureau borrower coverage and DB2017 Tanzania began to distribute credit data from retailers. Kenya improved access to credit information by passing legislation that allows DB2016 Kenya the sharing of positive information and by expanding borrower coverage. In Rwanda the credit bureau started to provide credit scores to banks and other DB2016 Rwanda financial institutions while the credit registry expanded borrower coverage, strengthening the credit reporting system. In Uganda the credit bureau expanded borrower coverage, improving access to DB2016 Uganda credit information. DB2015 Tanzania Tanzania improved access to credit information by creating credit bureaus. Rwanda improved access to credit by establishing clear priority rules outside bankruptcy for secured creditors and establishing clear grounds for relief from a DB2015 Rwanda stay of enforcement actions by secured creditors during reorganization procedures. Kenya improved its credit information system by passing legislation that allows Page 65   DB2015 Kenya the sharing of both positive and negative credit information and establishes bankruptcy for secured creditors and establishing clear grounds for relief from a DB2015 Rwanda Doing Business 2018 COMMUNITY EAST AFRICANstay (EAC) of enforcement actions by secured creditors during reorganization procedures. Kenya improved its credit information system by passing legislation that allows DB2015 Kenya the sharing of both positive and negative credit information and establishes guidelines for the treatment of historical data. Rwanda strengthened its secured transactions system by providing more DB2014 Rwanda flexibility on the types of debts and obligations that can be secured through a collateral agreement. Tanzania improved its credit information system through new regulations that DB2014 Tanzania provide for the licensing of credit reference bureaus and outline the functions of the credit reference data bank. In Rwanda the private credit bureau started to collect and distribute information DB2012 Rwanda from utility companies and also started to distribute more than 2 years of historical information, improving the credit information system. DB2011 Uganda Uganda enhanced access to credit by establishing a new private credit bureau. Rwanda enhanced access to credit by allowing borrowers the right to inspect DB2011 Rwanda their own credit report and mandating that loans of all sizes be reported to the central bank’s public credit registry. Protecting Minority Investors DB Year Economy Reform Rwanda strengthened minority investor protections by making it easier to sue DB2018 Rwanda directors, clarifying ownership and control structures and requiring greater corporate transparency. Kenya strengthened minority investor protections by clarifying ownership and control structures, by introducing greater requirements for disclosure of related- DB2017 Kenya party transactions to the board of directors, by making it easier to sue directors in cases of prejudicial related-party transactions and by allowing the rescission of related-party transactions that are shown to harm the company. Rwanda strengthened minority investor protections by introducing provisions allowing holders of 10% of a company’s shares to call for an extraordinary meeting of shareholders, requiring holders of special classes of shares to vote on DB2016 Rwanda decisions affecting their shares, requiring board members to disclose information about their directorships and primary employment and requiring that audit reports for listed companies be published in a newspaper. Rwanda strengthened investor protections through a new law allowing plaintiffs DB2014 Rwanda to cross-examine defendants and witnesses with prior approval of the questions by the court. Burundi strengthened investor protections by introducing new requirements for the approval of transactions between interested parties, by requiring greater DB2012 Burundi 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 DB Year Economy Reform Kenya made paying taxes easier by implementing an online platform, iTax, for Page 66   DB2018 Kenya Paying Taxes Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) DB Year Economy Reform Kenya made paying taxes easier by implementing an online platform, iTax, for DB2018 Kenya filing and paying corporate income tax and the standards levy. Rwanda made paying taxes easier by establishing an online system for filing and DB2018 Rwanda paying taxes. Uganda made paying taxes easier by eliminating a requirement for tax returns to DB2017 Uganda be submitted in paper copy following online submission. At the same time, Uganda increased the stamp duty for insurance contracts. Tanzania made paying taxes more complicated by increasing the frequency of DB2017 Tanzania filing of the skills Development Levy and more costly by introducing a workers’ compensation tariff paid by employers. Rwanda made paying taxes more complicated by introducing a requirement that DB2017 Rwanda companies file and pay social security contributions monthly instead of quarterly. Burundi made paying taxes easier by introducing a new tax return and DB2017 Burundi eliminating the personalized VAT declaration form. Rwanda made paying taxes easier for companies by introducing electronic filing DB2016 Rwanda and making its use compulsory. Tanzania made paying taxes more complicated for companies by introducing an DB2015 Tanzania excise tax on money transfers. On the other hand, it made paying taxes less costly by reducing the rate of the skill and development levy. Kenya made paying taxes more costly for companies by increasing employers’ DB2015 Kenya social security contribution rate. Burundi made paying taxes less costly for companies by reducing corporate DB2014 Burundi income tax rate. Rwanda made paying taxes easier and less costly for companies by rolling out its DB2014 Rwanda electronic filing system to the majority of businesses and by reducing the property tax rate and business trading license fee. Kenya made paying taxes faster for companies by enhancing electronic filing DB2013 Kenya systems. Burundi made paying taxes easier for companies by reducing the payment DB2012 Burundi frequency for social security contributions from monthly to quarterly. Rwanda reduced the frequency of value added tax filings by companies from DB2012 Rwanda monthly to quarterly. Kenya increased the administrative burden of paying taxes by requiring DB2011 Kenya quarterly filing of payroll taxes. Burundi made paying taxes simpler by replacing the transactions tax with a value DB2011 Burundi added tax. Trading across Borders DB Year Economy Reform Kenya reduced the time for import documentary compliance by utilizing its DB2018 Kenya single window system, which allows for electronic submission of customs entries. Page 67   Trading across Borders Doing Business 2018 DB Year COMMUNITY (EAC) EAST AFRICANReform Economy Kenya reduced the time for import documentary compliance by utilizing its DB2018 Kenya single window system, which allows for electronic submission of customs entries. Uganda reduced the time for export documentary compliance and border DB2018 Uganda compliance by allowing for electronic document submission and processing of certificates of origin and by further developing the Malaba One-Stop Border Post. Uganda made trading across borders easier by constructing the Malaba One-Stop DB2017 Uganda Border Post which reduced border compliance time for exports. Rwanda made trading across borders easier by removing the mandatory pre- DB2017 Rwanda shipment inspection for imported products. Rwanda increased the time and cost for documentary and border compliance for DB2016 Rwanda importing by making preshipment inspection mandatory for all imported products. Tanzania reduced the time for both exporting and importing by implementing DB2016 Tanzania the Tanzania Customs Integrated System (TANCIS), an online system for downloading and processing customs documents. Uganda made trading across borders easier by implementing the ASYCUDA DB2015 Uganda World electronic system for the submission of export and import documents. Tanzania made trading across borders easier by upgrading infrastructure at the DB2015 Tanzania port of Dar es Salaam. Burundi made trading across borders easier by eliminating the requirement for a DB2014 Burundi preshipment inspection clean report of findings. Rwanda made trading across borders easier by introducing an electronic single- DB2014 Rwanda window system at the border. Tanzania made importing more difficult by introducing a requirement to obtain a DB2013 Tanzania certificate of conformity before the imported goods are shipped. Burundi reduced the time to trade across borders by enhancing its use of electronic data interchange systems, introducing a more efficient system for DB2013 Burundi monitoring goods going through transit countries and improving border coordination with neighboring transit countries. Tanzania made trading across borders faster by implementing the Pre-Arrival DB2012 Tanzania Declaration (PAD) system and electronic submission of customs declaration. Rwanda reduced the number of trade documents required and enhanced its DB2011 Rwanda joint border management procedures with Uganda and other neighbors, leading to an improvement in the trade logistics environment. Kenya speeded up trade by implementing an electronic cargo tracking system DB2011 Kenya and linking this system to the Kenya Revenue Authority’s electronic data interchange system for customs clearance. Enforcing Contracts DB Year Economy Reform Rwanda made enforcing contracts easier by making judgements rendered at all DB2018 Rwanda levels in commercial cases available to the general public through publication on the judiciary’s website. Page 68   Enforcing Contracts Doing Business 2018 DB Year COMMUNITY (EAC) EAST AFRICANReform Economy Rwanda made enforcing contracts easier by making judgements rendered at all DB2018 Rwanda levels in commercial cases available to the general public through publication on the judiciary’s website. Rwanda made enforcing contracts easier by introducing an electronic case DB2017 Rwanda management system for judges and lawyers. Rwanda made enforcing contracts easier by implementing an electronic filing DB2013 Rwanda system for initial complaints. Kenya introduced a case management system that will help increase the DB2012 Kenya efficiency and cost-effectiveness of commercial dispute resolution. Uganda continues to improve the efficiency of its court system, greatly reducing DB2011 Uganda the time to file and serve a claim. Resolving Insolvency DB Year Economy Reform Kenya made resolving insolvency easier by introducing a reorganization DB2017 Kenya procedure, facilitating continuation of the debtor’s business during insolvency proceedings and by introducing regulations for insolvency practitioners. Rwanda improved its insolvency system by introducing provisions on voidable DB2016 Rwanda transactions and the approval of reorganization plans and by establishing additional safeguards for creditors in reorganization proceedings. Uganda made resolving insolvency easier by consolidating all provisions related to corporate insolvency in one law, establishing provisions on the administration DB2015 Uganda of companies (reorganization), clarifying standards on the professional qualifications of insolvency practitioners and introducing provisions allowing the avoidance of undervalued transactions. Rwanda made resolving insolvency easier through a new law clarifying the standards for beginning insolvency proceedings; preventing the separation of DB2014 Rwanda the debtor’s assets during reorganization proceedings; setting clear time limits for the submission of a reorganization plan; and implementing an automatic stay of creditors’ enforcement actions. Tanzania made resolving insolvency easier through new rules clearly specifying DB2014 Tanzania the professional requirements and remuneration for insolvency practitioners, promoting reorganization proceedings and streamlining insolvency proceedings. Uganda strengthened its insolvency process by clarifying rules on the creation of mortgages, establishing the duties of mortgagors and mortgagees, defining DB2013 Uganda priority rules, providing remedies for mortgagors and mortgagees and establishing the powers of receivers. DB2012 Burundi Burundi amended its commercial code to establish foreclosure procedures. Page 69   priority rules, providing remedies for mortgagors and mortgagees and establishing the powers of receivers. Doing Business 2018 EAST AFRICAN COMMUNITY (EAC) DB2012 Burundi Burundi amended its commercial code to establish foreclosure procedures. Page 70