Region Pro le of Southern African Development Community (SADC)
Doing Business 2018 Indicators
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Region Pro le of Southern African Development Community (SADC)
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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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
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 Southern African Development Community (SADC) rank on the ease of doing business
Mauritius (Rank 25) 77.54
Botswana (Rank 81) 64.94
South Africa (Rank 82) 64.89
Zambia (Rank 85) 64.50
Seychelles (Rank 95) 61.41
Page 3
60.42
world.
More
Doingabout 2018 (PDF,
Doing Business
Business 5MB)
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC) rank on the ease of doing business
Mauritius (Rank 25) 77.54
Botswana (Rank 81) 64.94
South Africa (Rank 82) 64.89
Zambia (Rank 85) 64.50
Seychelles (Rank 95) 61.41
Lesotho (Rank 104) 60.42
Namibia (Rank 106) 59.94
Malawi (Rank 110) 58.94
Swaziland (Rank 112) 58.82
Tanzania (Rank 137) 54.04
Mozambique (Rank 138) 54.00
Zimbabwe (Rank 159) 48.47
Madagascar (Rank 162) 47.67
Angola (Rank 175) 41.49
Congo, Dem. Rep. (Rank 182) 37.65
Regional Average (Rank 117) 56.98
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 - Southern African Development Community (SADC)
lowest performance and 100 represents the frontier.
Doing
Source: Business
Doing 2018
Business SOUTHERN
database AFRICAN DEVELOPMENT COMMUNITY (SADC)
Rankings on Doing Business topics - Southern African Development Community (SADC)
Starting a Business (128)
Resolving Insolvency (109) 0 Dealing with Construction Permits (110)
38
76
114
Enforcing Contracts (129) Getting Electricity (136)
152
190
Trading across Borders (118) Registering Property (118)
Paying Taxes (91) Getting Credit (89)
Protecting Minority Investors (97)
Regional average ranking (Scale: Rank 190 center, Rank 1 outer edge)
Source: Doing Business database.
Distance to frontier scores on Doing Business topics - Southern African Development Community (SADC)
Starting a Business (78.95)
Resolving Insolvency (37.71) 100 Dealing with Construction Permits (62.76)
80
60
40
Enforcing Contracts (47.37) Getting Electricity (53.56)
20
0
Trading across Borders (59.66) Registering Property (55.77)
Paying Taxes (70.60) Getting Credit (51.67)
Protecting Minority Investors (51.78)
(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 SOUTHERN
database AFRICAN DEVELOPMENT COMMUNITY (SADC)
Rankings on Doing Business topics - Southern African Development Community (SADC)
Starting a Business (128)
Resolving Insolvency (109) 0 Dealing with Construction Permits (110)
38
76
114
Enforcing Contracts (129) Getting Electricity (136)
152
190
Trading across Borders (118) Registering Property (118)
Paying Taxes (91) Getting Credit (89)
Protecting Minority Investors (97)
Regional average ranking (Scale: Rank 190 center, Rank 1 outer edge)
Source: Doing Business database.
Distance to frontier scores on Doing Business topics - Southern African Development Community (SADC)
Starting a Business (78.95)
Resolving Insolvency (37.71) 100 Dealing with Construction Permits (62.76)
80
60
40
Enforcing Contracts (47.37) Getting Electricity (53.56)
20
0
Trading across Borders (59.66) Registering Property (55.77)
Paying Taxes (70.60) Getting Credit (51.67)
Protecting Minority Investors (51.78)
(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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 population.
the majority of theCOMMUNITY
SOUTHERN AFRICAN DEVELOPMENT (SADC)
Starting a Business
Where do the region’s economies stand today?
How easy is it for entrepreneurs in economies in Southern African Development Community (SADC) 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 Southern African Development Community (SADC) rank on the ease of starting a business
Mauritius (Rank 40) 92.00
Congo, Dem. Rep. (Rank 62) 89.78
Madagascar (Rank 76) 87.76
Zambia (Rank 101) 84.89
Lesotho (Rank 119) 83.06
Angola (Rank 134) 80.09
South Africa (Rank 136) 79.97
Mozambique (Rank 137) 79.86
Seychelles (Rank 141) 78.68
Malawi (Rank 152) 76.43
Botswana (Rank 153) 76.22
Swaziland (Rank 158) 74.35
Tanzania (Rank 162) 73.03
Namibia (Rank 172) 68.90
Zimbabwe (Rank 180) 59.28
Regional Average (Rank 128) 78.95
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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC)
Procedure – Men (number)
Regional Average 7.9
Middle East and North Africa (MENA) 7.7
East African Community (EAC) 7.6
Sub-Saharan Africa (SSA) 7.6
East Asia and the Pacific (EAP) 7.0
OECD High Income 4.9
Swaziland 12.0
Tanzania 11.0
Mozambique 10.0
Namibia 10.0
Botswana 9.0
Seychelles 9.0
Zimbabwe 9.0
Angola 7.0
Lesotho 7.0
Malawi 7.0
South Africa 7.0
Zambia 7.0
Madagascar 5.0
Mauritius 5.0
Congo, Dem. Rep. 4.0
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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Starting a Business
Time – Men (days)
Regional Average 30.6
Sub-Saharan Africa (SSA) 24.0
East Asia and the Pacific (EAP) 22.7
Middle East and North Africa (MENA) 18.6
East African Community (EAC) 17.0
OECD High Income 8.5
Namibia 66.0
Zimbabwe 61.0
Botswana 48.0
South Africa 45.0
Malawi 37.0
Angola 36.0
Seychelles 32.0
Swaziland 30.0
Lesotho 29.0
Tanzania 28.0
Mozambique 19.0
Zambia 8.5
Madagascar 8.0
Congo, Dem. Rep. 7.0
Mauritius 5.0
0 10 20 30 40 50 60 70
Source: Doing Business database.
Starting a Business
Cost – Men (% of income per capita)
Sub-Saharan Africa (SSA) 49.9
East African Community (EAC) 36.3
Page 10
Regional Average 25.5
0 10 20 30 40 50 60 70
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Starting a Business
Cost – Men (% of income per capita)
Sub-Saharan Africa (SSA) 49.9
East African Community (EAC) 36.3
Regional Average 25.5
Middle East and North Africa (MENA) 18.7
East Asia and the Pacific (EAP) 18.4
OECD High Income 3.1
Zimbabwe 110.0
Malawi 44.6
Tanzania 42.9
Madagascar 35.8
Zambia 34.2
Congo, Dem. Rep. 28.6
Mozambique 18.1
Angola 17.4
Swaziland 16.4
Seychelles 13.2
Namibia 11.3
Lesotho 7.7
Mauritius 1.0
Botswana 0.7
South Africa 0.2
0 20 40 60 80 100 120
Source: Doing Business database.
Starting a Business
Paid-in min. capital (% of income per capita)
Sub-Saharan Africa (SSA) 25.6
East Asia and the Pacific (EAP) 15.1
Page 11
Middle East and North Africa (MENA) 9.9
0 20 40 60 80 100 120
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Starting a Business
Paid-in min. capital (% of income per capita)
Sub-Saharan Africa (SSA) 25.6
East Asia and the Pacific (EAP) 15.1
Middle East and North Africa (MENA) 9.9
OECD High Income 8.7
Regional Average 0.7
East African Community (EAC) 0.0
Congo, Dem. Rep. 9.7
Swaziland 0.3
Angola 0.0
Botswana 0.0
Lesotho 0.0
Madagascar 0.0
Malawi 0.0
Mauritius 0.0
Mozambique 0.0
Namibia 0.0
Seychelles 0.0
South Africa 0.0
Tanzania 0.0
Zambia 0.0
Zimbabwe 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.
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC) to legally build a
throughout the year; will be 1 inch in diameter for the water connection
Doing Business 2018 and 4 inches in diameter
SOUTHERN AFRICAN DEVELOPMENT (SADC) connection.
for the sewerage
COMMUNITY
Dealing with Construction Permits
Where do the region’s economies stand today?
How easy it is for entrepreneurs in economies in Southern African Development Community (SADC) 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 Southern African Development Community (SADC) rank on the ease of dealing with construction
permits
Mauritius (Rank 9) 82.45
Mozambique (Rank 56) 72.80
Botswana (Rank 59) 72.27
Zambia (Rank 69) 71.04
Angola (Rank 80) 68.80
South Africa (Rank 94) 67.53
Swaziland (Rank 102) 66.72
Namibia (Rank 107) 66.10
Congo, Dem. Rep. (Rank 121) 63.91
Seychelles (Rank 131) 61.90
Malawi (Rank 144) 59.22
Tanzania (Rank 156) 56.43
Lesotho (Rank 167) 51.57
Zimbabwe (Rank 175) 44.73
Madagascar (Rank 183) 35.88
Regional Average (Rank 110) 62.76
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.
Page 14
Comparing these indicators across the region and with averages both for the region and for comparator regions can provide
0 20 40 60 80 100
Distance to frontier score
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development
Community (SADC)
Time (days)
Regional Average 155.0
OECD High Income 154.6
Sub-Saharan Africa (SSA) 147.5
East Asia and the Pacific (EAP) 138.2
Middle East and North Africa (MENA) 132.1
East African Community (EAC) 129.6
Zimbabwe 238.0
Zambia 189.0
Madagascar 185.0
Tanzania 184.0
Lesotho 183.0
Angola 173.0
Namibia 160.0
Malawi 153.0
Seychelles 151.0
South Africa 149.0
Congo, Dem. Rep. 122.0
Mozambique 118.0
Swaziland 116.0
Botswana 106.0
Mauritius 98.0
0 50 100 150 200 250 300
Source: Doing Business database.
Dealing with Construction Permits
Page 15
0 50 100 150 200 250 300
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Dealing with Construction Permits
Cost (% of warehouse value)
Sub-Saharan Africa (SSA) 9.9
East African Community (EAC) 9.1
Regional Average 9.0
Middle East and North Africa (MENA) 4.3
East Asia and the Pacific (EAP) 2.2
OECD High Income 1.6
Madagascar 54.5
Zimbabwe 22.5
Lesotho 12.4
Malawi 11.6
Congo, Dem. Rep. 8.4
Tanzania 6.6
Mozambique 6.3
Swaziland 3.6
Zambia 3.1
Namibia 2.5
South Africa 1.6
Mauritius 0.6
Angola 0.5
Botswana 0.4
Seychelles 0.3
0 10 20 30 40 50 60
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
Page 16
East African Community (EAC) 9.2
0 10 20 30 40 50 60
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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
East African Community (EAC) 9.2
East Asia and the Pacific (EAP) 8.9
Regional Average 8.6
Sub-Saharan Africa (SSA) 8.0
Mauritius 14.0
Tanzania 12.0
Mozambique 11.0
South Africa 11.0
Botswana 10.5
Zambia 10.0
Malawi 9.5
Zimbabwe 9.0
Congo, Dem. Rep. 8.0
Swaziland 7.0
Namibia 6.5
Angola 6.0
Lesotho 5.0
Madagascar 5.0
Seychelles 5.0
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.
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC) 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 for calculation purposes
SOUTHERN AFRICAN DEVELOPMENT only 30 days
COMMUNITY are used.
(SADC)
Getting Electricity
Where do the region’s economies stand today?
How easy it is for entrepreneurs in economies in Southern African Development Community (SADC) 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 Southern African Development Community (SADC) rank on the ease of getting electricity
Mauritius (Rank 51) 82.03
Namibia (Rank 68) 78.12
Tanzania (Rank 82) 73.96
South Africa (Rank 112) 63.21
Botswana (Rank 124) 59.38
Seychelles (Rank 134) 57.86
Mozambique (Rank 150) 52.54
Lesotho (Rank 152) 52.09
Zambia (Rank 155) 49.92
Swaziland (Rank 159) 47.24
Zimbabwe (Rank 161) 44.90
Angola (Rank 165) 44.08
Malawi (Rank 166) 43.43
Congo, Dem. Rep. (Rank 175) 33.59
Madagascar (Rank 184) 21.07
Regional Average (Rank 136) 53.56
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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC)
Procedures (number)
Regional Average 5.5
Sub-Saharan Africa (SSA) 5.3
Middle East and North Africa (MENA) 4.8
OECD High Income 4.7
East Asia and the Pacific (EAP) 4.5
East African Community (EAC) 4.4
Angola 7.0
Congo, Dem. Rep. 6.0
Madagascar 6.0
Malawi 6.0
Namibia 6.0
Seychelles 6.0
Swaziland 6.0
Zambia 6.0
Zimbabwe 6.0
Botswana 5.0
Lesotho 5.0
Mozambique 5.0
Mauritius 4.0
South Africa 4.0
Tanzania 4.0
0 1 2 3 4 5 6 7 8
Source: Doing Business database.
Getting Electricity
Time (days) Page 20
0 1 2 3 4 5 6 7 8
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Getting Electricity
Time (days)
Regional Average 121.3
Sub-Saharan Africa (SSA) 115.3
East African Community (EAC) 92.8
Middle East and North Africa (MENA) 81.4
OECD High Income 79.1
East Asia and the Pacific (EAP) 71.6
Madagascar 450.0
Seychelles 137.0
Swaziland 137.0
Malawi 127.0
Angola 121.0
Zambia 117.0
Lesotho 114.0
Tanzania 109.0
Zimbabwe 106.0
South Africa 84.0
Mauritius 81.0
Botswana 77.0
Mozambique 68.0
Congo, Dem. Rep. 54.0
Namibia 37.0
0 100 200 300 400 500
Source: Doing Business database.
Getting Electricity
Cost (% of income per capita)
East African Community (EAC) 5463.4
Sub-Saharan Africa (SSA) 3737.0
Page 21
Regional Average 2256.0
0 100 200 300 400 500
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Getting Electricity
Cost (% of income per capita)
East African Community (EAC) 5463.4
Sub-Saharan Africa (SSA) 3737.0
Regional Average 2256.0
Middle East and North Africa (MENA) 780.3
East Asia and the Pacific (EAP) 712.0
OECD High Income 63.0
Congo, Dem. Rep. 14885.8
Madagascar 5322.0
Mozambique 2817.3
Zimbabwe 2602.6
Malawi 2341.6
Lesotho 1341.8
Angola 990.1
Tanzania 843.8
Swaziland 753.7
Zambia 588.5
Seychelles 349.6
Namibia 343.7
Botswana 283.8
Mauritius 229.4
South Africa 146.6
0 2000 4000 6000 8000 10000 12000 14000 16000
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
Page 22
East Asia and the Pacific (EAP) 3.7
0 2000 4000 6000 8000 10000 12000 14000 16000
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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
East Asia and the Pacific (EAP) 3.7
East African Community (EAC) 1.8
Regional Average 1.3
Sub-Saharan Africa (SSA) 0.9
Mauritius 6.0
Namibia 6.0
Tanzania 5.0
Seychelles 3.0
Angola 0.0
Botswana 0.0
Congo, Dem. Rep. 0.0
Lesotho 0.0
Madagascar 0.0
Malawi 0.0
Mozambique 0.0
South Africa 0.0
Swaziland 0.0
Zambia 0.0
Zimbabwe 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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC) 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 Southern African Development Community (SADC) rank on the ease of registering property
Page 24
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Registering Property
Where do the region’s economies stand today?
How easy it is for entrepreneurs in economies in Southern African Development Community (SADC) 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 Southern African Development Community (SADC) rank on the ease of registering property
Mauritius (Rank 35) 77.89
Seychelles (Rank 62) 70.75
Botswana (Rank 81) 65.45
Malawi (Rank 96) 62.45
Mozambique (Rank 104) 59.27
South Africa (Rank 107) 58.43
Zimbabwe (Rank 108) 58.21
Lesotho (Rank 109) 58.12
Swaziland (Rank 115) 57.40
Tanzania (Rank 142) 50.13
Zambia (Rank 149) 48.69
Congo, Dem. Rep. (Rank 158) 45.85
Madagascar (Rank 161) 44.63
Angola (Rank 172) 40.86
Namibia (Rank 175) 38.35
Regional Average (Rank 118) 55.77
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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC)
Procedures (number)
East African Community (EAC) 7.0
Regional Average 6.2
Sub-Saharan Africa (SSA) 6.2
Middle East and North Africa (MENA) 5.7
East Asia and the Pacific (EAP) 5.5
OECD High Income 4.7
Swaziland 9.0
Congo, Dem. Rep. 8.0
Namibia 8.0
Tanzania 8.0
Angola 7.0
South Africa 7.0
Madagascar 6.0
Malawi 6.0
Mozambique 6.0
Zambia 6.0
Mauritius 5.0
Zimbabwe 5.0
Botswana 4.0
Lesotho 4.0
Seychelles 4.0
0 2 4 6 8 10
Source: Doing Business database.
Registering Property
Time (days) Page 26
0 2 4 6 8 10
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Registering Property
Time (days)
East Asia and the Pacific (EAP) 74.5
Sub-Saharan Africa (SSA) 59.3
Regional Average 53.4
East African Community (EAC) 40.0
Middle East and North Africa (MENA) 30.3
OECD High Income 22.3
Angola 190.0
Madagascar 100.0
Malawi 69.0
Tanzania 67.0
Namibia 52.0
Zambia 45.0
Lesotho 43.0
Mozambique 40.0
Congo, Dem. Rep. 38.0
Zimbabwe 36.0
Seychelles 33.0
Botswana 27.0
South Africa 23.0
Swaziland 21.0
Mauritius 17.0
0 50 100 150 200
Source: Doing Business database.
Registering Property
Cost (% of property value)
Sub-Saharan Africa (SSA) 7.8
Regional Average 6.8
Page 27
Middle East and North Africa (MENA) 6.0
0 50 100 150 200
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Registering Property
Cost (% of property value)
Sub-Saharan Africa (SSA) 7.8
Regional Average 6.8
Middle East and North Africa (MENA) 6.0
East Asia and the Pacific (EAP) 4.3
OECD High Income 4.2
East African Community (EAC) 3.5
Namibia 13.8
Congo, Dem. Rep. 11.1
Zambia 9.9
Madagascar 9.1
Lesotho 8.1
South Africa 7.6
Zimbabwe 7.6
Swaziland 7.1
Seychelles 7.0
Tanzania 5.2
Botswana 5.1
Mozambique 5.1
Angola 2.9
Malawi 1.6
Mauritius 0.6
0 2 4 6 8 10 12 14 16
Source: Doing Business database.
Registering Property
Quality of the land administration index (0-30)
OECD High Income 22.7
East Asia and the Pacific (EAP) 15.8
Page 28
Middle East and North Africa (MENA) 13.4
0 2 4 6 8 10 12 14 16
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Registering Property
Quality of the land administration index (0-30)
OECD High Income 22.7
East Asia and the Pacific (EAP) 15.8
Middle East and North Africa (MENA) 13.4
East African Community (EAC) 13.3
Regional Average 11.0
Sub-Saharan Africa (SSA) 8.6
Seychelles 21.0
Mauritius 17.0
Swaziland 16.0
South Africa 13.5
Malawi 10.5
Botswana 10.0
Congo, Dem. Rep. 10.0
Zimbabwe 10.0
Lesotho 9.5
Mozambique 9.5
Madagascar 8.5
Namibia 8.5
Tanzania 7.5
Angola 7.0
Zambia 7.0
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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development
Community (SADC) 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 Southern African Development Community (SADC) 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). ABC keeps
SOUTHERN AFRICAN DEVELOPMENT ownership and
COMMUNITY possession of the assets.
(SADC)
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 Southern African Development
Community (SADC) 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 Southern African Development Community (SADC) rank on the ease of getting credit
Zambia (Rank 2) 95.00
Malawi (Rank 6) 90.00
Tanzania (Rank 55) 65.00
Mauritius (Rank 55) 65.00
Namibia (Rank 68) 60.00
South Africa (Rank 68) 60.00
Swaziland (Rank 77) 55.00
Botswana (Rank 77) 55.00
Lesotho (Rank 77) 55.00
Zimbabwe (Rank 105) 45.00
Madagascar (Rank 133) 35.00
Seychelles (Rank 133) 35.00
Congo, Dem. Rep. (Rank 142) 30.00
Mozambique (Rank 159) 25.00
Angola (Rank 183) 5.00
Regional Average (Rank 89) 51.67
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 Southern African Development Community (SADC) 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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC) 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)
East Asia and the Pacific (EAP) 7.2
East African Community (EAC) 6.0
OECD High Income 6.0
Sub-Saharan Africa (SSA) 5.1
Regional Average 4.9
Middle East and North Africa (MENA) 1.6
Malawi 11.0
Zambia 11.0
Congo, Dem. Rep. 6.0
Mauritius 6.0
Botswana 5.0
Lesotho 5.0
Namibia 5.0
South Africa 5.0
Tanzania 5.0
Zimbabwe 5.0
Swaziland 4.0
Madagascar 2.0
Seychelles 2.0
Angola 1.0
Mozambique 1.0
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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Getting Credit
Depth of credit information index (0-8)
OECD High Income 6.6
East African Community (EAC) 6.2
Regional Average 5.4
Middle East and North Africa (MENA) 4.8
East Asia and the Pacific (EAP) 4.2
Sub-Saharan Africa (SSA) 3.0
Tanzania 8.0
Zambia 8.0
Malawi 7.0
Mauritius 7.0
Namibia 7.0
South Africa 7.0
Swaziland 7.0
Botswana 6.0
Lesotho 6.0
Madagascar 5.0
Seychelles 5.0
Mozambique 4.0
Zimbabwe 4.0
Angola 0.0
Congo, Dem. Rep. 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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC)? 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 Southern African Development Community (SADC) rank on the ease of protecting minority
investors Page 34
- The transaction causes damages to Buyer. Shareholders sue Mr. James
Doing Business 2018 and the other parties
SOUTHERN AFRICAN DEVELOPMENT that approved
COMMUNITY the transaction.
(SADC)
Protecting Minority Investors
Where do the region’s economies stand today?
How strong are investor protections against self-dealing in economies in Southern African Development Community (SADC)? 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 Southern African Development Community (SADC) rank on the ease of protecting minority
investors
South Africa (Rank 24) 70.00
Mauritius (Rank 33) 66.67
Botswana (Rank 76) 56.67
Angola (Rank 81) 55.00
Zambia (Rank 89) 53.33
Zimbabwe (Rank 89) 53.33
Namibia (Rank 89) 53.33
Madagascar (Rank 96) 51.67
Malawi (Rank 96) 51.67
Lesotho (Rank 108) 50.00
Seychelles (Rank 108) 50.00
Tanzania (Rank 129) 45.00
Swaziland (Rank 138) 41.67
Mozambique (Rank 138) 41.67
Congo, Dem. Rep. (Rank 164) 36.67
Regional Average (Rank 97) 51.78
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 Page 35
higher
0 20 40 60 80 100
Distance to frontier score
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC). 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
East African Community (EAC) 5.9
East Asia and the Pacific (EAP) 5.7
Regional Average 5.7
Middle East and North Africa (MENA) 4.9
Sub-Saharan Africa (SSA) 4.8
South Africa 8.0
Mauritius 7.7
Botswana 6.0
Madagascar 6.0
Malawi 6.0
Namibia 5.7
Seychelles 5.7
Zambia 5.7
Angola 5.3
Lesotho 5.3
Mozambique 5.3
Tanzania 5.3
Zimbabwe 5.0
Swaziland 4.3
Congo, Dem. Rep. 3.7
0 2 4 6 8 10
Source: Doing Business database.
Protecting Minority Investors
Page 36
0 2 4 6 8 10
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Protecting Minority Investors
Extent of shareholder governance index (0-10)
OECD High Income 6.4
East African Community (EAC) 4.9
East Asia and the Pacific (EAP) 4.8
Middle East and North Africa (MENA) 4.7
Regional Average 4.7
Sub-Saharan Africa (SSA) 4.0
South Africa 6.0
Angola 5.7
Mauritius 5.7
Zimbabwe 5.7
Botswana 5.3
Namibia 5.0
Zambia 5.0
Lesotho 4.7
Madagascar 4.3
Malawi 4.3
Seychelles 4.3
Swaziland 4.0
Congo, Dem. Rep. 3.7
Tanzania 3.7
Mozambique 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.
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC) —
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.
Page 38
submits corrected information after the deadline for submitting the
Doing Business 2018 but within the tax
annual tax return, COMMUNITY
SOUTHERN AFRICAN DEVELOPMENT assessment period.
(SADC)
Paying Taxes
Where do the region’s economies stand today?
What is the administrative burden of complying with taxes in economies in Southern African Development Community (SADC) —
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 Southern African Development Community (SADC) rank on the ease of paying taxes
Mauritius (Rank 10) 90.85
Zambia (Rank 15) 88.71
Seychelles (Rank 29) 84.72
South Africa (Rank 46) 80.02
Botswana (Rank 47) 80.01
Swaziland (Rank 63) 77.27
Namibia (Rank 79) 74.52
Angola (Rank 103) 69.54
Lesotho (Rank 111) 68.68
Mozambique (Rank 117) 66.13
Madagascar (Rank 131) 62.70
Malawi (Rank 134) 62.10
Zimbabwe (Rank 143) 58.83
Tanzania (Rank 154) 55.49
Congo, Dem. Rep. (Rank 181) 39.40
Regional Average (Rank 91) 70.60
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
Page 39
and pay taxes the 3 major taxes (corporate income tax, VAT or sales tax and labor taxes and mandatory contributions)—as well
0 20 40 60 80 100
Distance to frontier score
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC) - and what are the total
tax rates
Payments (number per year)
Sub-Saharan Africa (SSA) 37.2
Regional Average 31.3
East African Community (EAC) 30.0
East Asia and the Pacific (EAP) 21.8
Middle East and North Africa (MENA) 17.9
OECD High Income 10.9
Tanzania 60.0
Congo, Dem. Rep. 52.0
Zimbabwe 51.0
Mozambique 37.0
Malawi 35.0
Botswana 34.0
Swaziland 33.0
Lesotho 32.0
Angola 31.0
Seychelles 29.0
Namibia 27.0
Madagascar 23.0
Zambia 11.0
Mauritius 8.0
South Africa 7.0
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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Paying Taxes
Time (hours per year)
Sub-Saharan Africa (SSA) 280.8
Regional Average 208.7
Middle East and North Africa (MENA) 203.3
East Asia and the Pacific (EAP) 189.2
East African Community (EAC) 182.8
OECD High Income 160.7
Congo, Dem. Rep. 346.0
Lesotho 333.0
Namibia 302.0
Angola 287.0
Zimbabwe 242.0
South Africa 210.0
Tanzania 207.0
Mozambique 200.0
Madagascar 183.0
Malawi 177.5
Zambia 164.0
Mauritius 152.0
Swaziland 122.0
Botswana 120.0
Seychelles 85.0
0 50 100 150 200 250 300 350 400
Source: Doing Business database.
Paying Taxes
Total tax and contribution rate (% of profit)
Sub-Saharan Africa (SSA) 46.8
OECD High Income 40.1
Page 41
East African Community (EAC) 38.0
0 50 100 150 200 250 300 350 400
Doing Business 2018
Source: Doing Business database.
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Paying Taxes
Total tax and contribution rate (% of profit)
Sub-Saharan Africa (SSA) 46.8
OECD High Income 40.1
East African Community (EAC) 38.0
East Asia and the Pacific (EAP) 33.6
Middle East and North Africa (MENA) 32.5
Regional Average 31.9
Congo, Dem. Rep. 54.6
Angola 49.1
Tanzania 44.1
Madagascar 38.1
Mozambique 36.1
Swaziland 35.2
Malawi 34.5
Zimbabwe 31.6
Seychelles 30.1
South Africa 28.9
Botswana 25.1
Mauritius 21.9
Namibia 20.7
Zambia 15.6
Lesotho 13.6
0 10 20 30 40 50 60
Source: Doing Business database.
Paying Taxes
Postfiling index (0-100)
OECD High Income 83.5
Regional Average 65.9
Page 42
East African Community (EAC) 58.7
0 10 20 30 40 50 60
Doing Business 2018
Source: Doing Business database.
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Paying Taxes
Postfiling index (0-100)
OECD High Income 83.5
Regional Average 65.9
East African Community (EAC) 58.7
East Asia and the Pacific (EAP) 56.5
Sub-Saharan Africa (SSA) 54.4
Middle East and North Africa (MENA) 50.6
Angola 95.0
Seychelles 93.4
Mauritius 87.7
Zambia 85.9
Swaziland 83.2
Botswana 82.7
Namibia 77.2
Tanzania 67.2
Lesotho 66.9
Mozambique 58.6
South Africa 55.5
Zimbabwe 52.8
Malawi 33.4
Congo, Dem. Rep. 27.1
Madagascar 21.8
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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC) 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 Southern African Development Community (SADC) rank on the ease of trading across borders
Page 44
Swaziland (Rank 32) 92.92
of agriculture or industry, national security agencies and any other
government authorities.
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Trading across Borders
Where do the region’s economies stand today?
How easy it is for businesses in economies in Southern African Development Community (SADC) 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 Southern African Development Community (SADC) rank on the ease of trading across borders
Swaziland (Rank 32) 92.92
Lesotho (Rank 40) 91.60
Botswana (Rank 50) 86.65
Mauritius (Rank 70) 79.90
Seychelles (Rank 88) 71.79
Mozambique (Rank 109) 67.25
Malawi (Rank 117) 65.29
Namibia (Rank 132) 61.47
Madagascar (Rank 134) 60.95
South Africa (Rank 147) 58.01
Zambia (Rank 150) 56.88
Zimbabwe (Rank 153) 55.47
Angola (Rank 180) 25.28
Tanzania (Rank 182) 20.21
Congo, Dem. Rep. (Rank 188) 1.26
Regional Average (Rank 118) 59.66
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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC)
Time to export: Border compliance (hours)
Regional Average 104.1
Sub-Saharan Africa (SSA) 100.1
East African Community (EAC) 67.4
Middle East and North Africa (MENA) 62.6
East Asia and the Pacific (EAP) 55.9
OECD High Income 12.7
Congo, Dem. Rep. 515.0
Angola 192.0
Namibia 120.0
Zambia 120.0
South Africa 100.0
Tanzania 96.0
Seychelles 82.0
Malawi 78.0
Zimbabwe 74.0
Madagascar 70.0
Mozambique 66.0
Mauritius 38.0
Botswana 5.0
Lesotho 4.0
Swaziland 2.0
0 100 200 300 400 500 600
Source: Doing Business database.
Trading across Borders
Page 46
Cost to export: Border compliance (USD)
0 100 200 300 400 500 600
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Trading across Borders
Cost to export: Border compliance (USD)
Regional Average 599.0
Sub-Saharan Africa (SSA) 592.2
Middle East and North Africa (MENA) 464.5
East Asia and the Pacific (EAP) 387.6
East African Community (EAC) 366.2
OECD High Income 149.9
Congo, Dem. Rep. 2223.0
Tanzania 1160.0
Madagascar 868.0
Angola 825.0
Namibia 745.0
Mozambique 602.0
South Africa 428.0
Zambia 370.0
Seychelles 332.0
Botswana 317.0
Mauritius 303.0
Zimbabwe 285.0
Malawi 243.0
Lesotho 150.0
Swaziland 134.0
0 500 1000 1500 2000 2500
Source: Doing Business database.
Trading across Borders
Time to export: Documentary compliance (hours)
Regional Average 105.7
Sub-Saharan Africa (SSA) 87.8
Page 47
Middle East and North Africa (MENA) 74.3
0 500 1000 1500 2000 2500
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Trading across Borders
Time to export: Documentary compliance (hours)
Regional Average 105.7
Sub-Saharan Africa (SSA) 87.8
Middle East and North Africa (MENA) 74.3
East Asia and the Pacific (EAP) 68.1
East African Community (EAC) 65.6
OECD High Income 2.6
Congo, Dem. Rep. 698.0
Angola 169.0
Zimbabwe 99.0
Tanzania 96.0
Zambia 96.0
Namibia 90.0
Malawi 75.0
Mozambique 70.0
South Africa 68.0
Madagascar 49.0
Seychelles 44.0
Botswana 18.0
Mauritius 9.0
Lesotho 3.0
Swaziland 2.0
0 100 200 300 400 500 600 700 800
Source: Doing Business database.
Trading across Borders
Cost to export: Documentary compliance (USD)
Regional Average 344.7
Middle East and North Africa (MENA) 243.6
Page 48
Sub-Saharan Africa (SSA) 215.2
0 100 200 300 400 500 600 700 800
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Trading across Borders
Cost to export: Documentary compliance (USD)
Regional Average 344.7
Middle East and North Africa (MENA) 243.6
Sub-Saharan Africa (SSA) 215.2
East African Community (EAC) 165.6
East Asia and the Pacific (EAP) 112.1
OECD High Income 35.5
Congo, Dem. Rep. 2500.0
Namibia 348.0
Malawi 342.0
Tanzania 275.0
Angola 240.0
Mozambique 220.0
Zambia 200.0
Botswana 179.0
South Africa 170.0
Zimbabwe 170.0
Mauritius 128.0
Madagascar 117.0
Seychelles 115.0
Lesotho 90.0
Swaziland 76.0
0 500 1000 1500 2000 2500 3000
Source: Doing Business database.
Trading across Borders
Time to import: Border compliance (hours)
East African Community (EAC) 195.2
Sub-Saharan Africa (SSA) 136.4
Page 49
Regional Average 126.8
0 500 1000 1500 2000 2500 3000
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Trading across Borders
Time to import: Border compliance (hours)
East African Community (EAC) 195.2
Sub-Saharan Africa (SSA) 136.4
Regional Average 126.8
Middle East and North Africa (MENA) 112.3
East Asia and the Pacific (EAP) 70.5
OECD High Income 8.7
Congo, Dem. Rep. 588.0
Tanzania 402.0
Zimbabwe 228.0
South Africa 144.0
Zambia 120.0
Madagascar 99.0
Seychelles 97.0
Angola 96.0
Malawi 55.0
Mauritius 41.0
Mozambique 14.0
Namibia 6.0
Lesotho 5.0
Botswana 4.0
Swaziland 3.0
0 100 200 300 400 500 600 700
Source: Doing Business database.
Trading across Borders
Cost to import: Border compliance (USD)
Sub-Saharan Africa (SSA) 686.9
East African Community (EAC) 664.2
Page 50
Regional Average 623.3
0 100 200 300 400 500 600 700
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Trading across Borders
Cost to import: Border compliance (USD)
Sub-Saharan Africa (SSA) 686.9
East African Community (EAC) 664.2
Regional Average 623.3
Middle East and North Africa (MENA) 540.8
East Asia and the Pacific (EAP) 431.1
OECD High Income 111.6
Congo, Dem. Rep. 3039.0
Tanzania 1350.0
Angola 1030.0
South Africa 657.0
Madagascar 595.0
Zimbabwe 562.0
Zambia 380.0
Mauritius 372.0
Mozambique 354.0
Seychelles 341.0
Lesotho 150.0
Namibia 145.0
Malawi 143.0
Swaziland 134.0
Botswana 98.0
0 500 1000 1500 2000 2500 3000 3500
Source: Doing Business database.
Trading across Borders
Time to import: Documentary compliance (hours)
East African Community (EAC) 133.2
Sub-Saharan Africa (SSA) 103.0
Page 51
Middle East and North Africa (MENA) 94.5
0 500 1000 1500 2000 2500 3000 3500
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Trading across Borders
Time to import: Documentary compliance (hours)
East African Community (EAC) 133.2
Sub-Saharan Africa (SSA) 103.0
Middle East and North Africa (MENA) 94.5
Regional Average 67.8
East Asia and the Pacific (EAP) 65.6
OECD High Income 3.9
Tanzania 240.0
Congo, Dem. Rep. 216.0
Angola 180.0
Zimbabwe 81.0
Zambia 72.0
Madagascar 58.0
Malawi 55.0
South Africa 36.0
Seychelles 33.0
Mozambique 24.0
Mauritius 9.0
Swaziland 4.0
Botswana 3.0
Lesotho 3.0
Namibia 3.0
0 50 100 150 200 250 300
Source: Doing Business database.
Trading across Borders
Cost to import: Documentary compliance (USD)
East African Community (EAC) 386.4
Sub-Saharan Africa (SSA) 300.2
Page 52
Middle East and North Africa (MENA) 266.2
0 50 100 150 200 250 300
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Trading across Borders
Cost to import: Documentary compliance (USD)
East African Community (EAC) 386.4
Sub-Saharan Africa (SSA) 300.2
Middle East and North Africa (MENA) 266.2
Regional Average 219.1
East Asia and the Pacific (EAP) 111.5
OECD High Income 25.7
Congo, Dem. Rep. 875.0
Angola 460.0
Tanzania 375.0
South Africa 213.0
Zambia 175.0
Mozambique 171.0
Mauritius 166.0
Malawi 162.0
Madagascar 150.0
Zimbabwe 150.0
Seychelles 93.0
Lesotho 90.0
Swaziland 76.0
Botswana 67.0
Namibia 63.0
0 200 400 600 800 1000
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
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African
Development Community (SADC)? 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 Southern African Development Community (SADC) rank on the ease of enforcing contracts
Mauritius (Rank 27) 69.58
Tanzania (Rank 58) 61.66
Namibia (Rank 59) 61.58
Lesotho (Rank 95) 57.18
South Africa (Rank 115) 54.10
Zambia (Rank 128) 51.74
Seychelles (Rank 130) 51.25
Botswana (Rank 133) 49.99 Page 54
- The seller enforces the judgment through a public sale of the buyer’s
Doing Business 2018 movable assets. COMMUNITY (SADC)
SOUTHERN AFRICAN DEVELOPMENT
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 Southern African
Development Community (SADC)? 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 Southern African Development Community (SADC) rank on the ease of enforcing contracts
Mauritius (Rank 27) 69.58
Tanzania (Rank 58) 61.66
Namibia (Rank 59) 61.58
Lesotho (Rank 95) 57.18
South Africa (Rank 115) 54.10
Zambia (Rank 128) 51.74
Seychelles (Rank 130) 51.25
Botswana (Rank 133) 49.99
Malawi (Rank 151) 45.55
Madagascar (Rank 158) 42.85
Zimbabwe (Rank 166) 38.73
Swaziland (Rank 169) 36.72
Congo, Dem. Rep. (Rank 172) 36.06
Mozambique (Rank 184) 27.32
Angola (Rank 186) 26.26
Regional Average (Rank 129) 47.37
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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community
(SADC)
Time (days)
Regional Average 700.7
Sub-Saharan Africa (SSA) 656.8
Middle East and North Africa (MENA) 638.5
OECD High Income 577.8
East Asia and the Pacific (EAP) 565.7
East African Community (EAC) 506.4
Angola 1296.0
Swaziland 956.0
Mozambique 950.0
Seychelles 915.0
Madagascar 871.0
Botswana 660.0
Lesotho 615.0
Zambia 611.0
Congo, Dem. Rep. 610.0
South Africa 600.0
Malawi 522.0
Mauritius 519.0
Tanzania 515.0
Namibia 460.0
Zimbabwe 410.0
0 200 400 600 800 1000 1200 1400
Source: Doing Business database.
Enforcing Contracts
Page 56
Cost (% of claim value)
0 200 400 600 800 1000 1200 1400
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Source: Doing Business database.
Enforcing Contracts
Cost (% of claim value)
Regional Average 48.0
East Asia and the Pacific (EAP) 47.3
Sub-Saharan Africa (SSA) 44.0
East African Community (EAC) 41.7
Middle East and North Africa (MENA) 24.4
OECD High Income 21.6
Mozambique 119.0
Zimbabwe 83.1
Congo, Dem. Rep. 80.6
Malawi 69.1
Swaziland 56.1
Angola 44.4
Botswana 39.8
Zambia 38.7
Namibia 35.8
Madagascar 33.6
South Africa 33.2
Lesotho 31.3
Mauritius 25.0
Seychelles 15.4
Tanzania 14.3
0 20 40 60 80 100 120 140
Source: Doing Business database.
Enforcing Contracts
Quality of judicial processes index (0-18)
OECD High Income 11.0
East African Community (EAC) 8.9
Page 57
East Asia and the Pacific (EAP) 7.9
0 20 40 60 80 100 120 140
Doing Business 2018
Source: Doing Business database.
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
Enforcing Contracts
Quality of judicial processes index (0-18)
OECD High Income 11.0
East African Community (EAC) 8.9
East Asia and the Pacific (EAP) 7.9
Regional Average 7.4
Sub-Saharan Africa (SSA) 6.5
Middle East and North Africa (MENA) 5.8
Mauritius 12.5
Namibia 9.5
Mozambique 9.0
Lesotho 8.5
Malawi 8.5
Swaziland 7.5
Botswana 7.0
Congo, Dem. Rep. 7.0
South Africa 7.0
Zambia 7.0
Seychelles 6.5
Tanzania 6.0
Zimbabwe 6.0
Madagascar 5.0
Angola 4.5
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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC)? 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 Southern African Development Community (SADC) rank on the ease of resolving insolvency
Page 59
Mauritius (Rank 36) 69.06
Reorganization proceedings index (0-3)
Doing Business
Creditor 2018
participation SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
index (0-4)
Resolving Insolvency
Where do the region’s economies stand today?
How e cient are insolvency proceedings in economies in Southern African Development Community (SADC)? 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 Southern African Development Community (SADC) rank on the ease of resolving insolvency
Mauritius (Rank 36) 69.06
South Africa (Rank 55) 57.59
Seychelles (Rank 67) 52.14
Mozambique (Rank 75) 48.20
Botswana (Rank 79) 47.76
Zambia (Rank 89) 44.85
Tanzania (Rank 108) 39.52
Swaziland (Rank 114) 38.90
Namibia (Rank 123) 37.04
Lesotho (Rank 124) 36.91
Madagascar (Rank 133) 34.24
Malawi (Rank 138) 33.28
Zimbabwe (Rank 155) 26.21
Angola (Rank 168) 0.00
Congo, Dem. Rep. (Rank 168) 0.00
Regional Average (Rank 109) 37.71
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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC)
Recovery rate (cents on the dollar)
OECD High Income 71.2
East Asia and the Pacific (EAP) 35.4
Regional Average 30.0
Middle East and North Africa (MENA) 25.5
East African Community (EAC) 22.7
Sub-Saharan Africa (SSA) 20.3
Mauritius 67.4
Botswana 65.5
Zambia 48.5
Seychelles 38.8
Swaziland 37.4
South Africa 34.4
Namibia 34.0
Mozambique 31.5
Lesotho 27.9
Tanzania 21.2
Zimbabwe 19.7
Malawi 12.5
Madagascar 11.4
Angola 0.0
Congo, Dem. Rep. 0.0
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 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
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 Southern African Development Community (SADC) since Doing Business 2008.
DB Year Economy Reform
The Democratic Republic of Congo made starting a business easier by
DB2018 Congo, Dem. Rep. eliminating the requirement that a woman obtain her husband’s permission to
start a business and by combining multiple business registration procedures.
Madagascar made starting a business easier by publishing the notice of company
DB2018 Madagascar incorporation online free of charge and by allowing the payment of registration
fees directly at the one-stop shop.
Malawi made starting a business more expensive by increasing the cost of
DB2018 Malawi
registering a business with the Registrar General.
Mauritius made starting a business easier by exempting trade fees for licenses
DB2018 Mauritius
below MUR 5,000 and introducing the electronic certificate of incorporation.
Zimbabwe made starting a business easier by removing the obligation to
DB2018 Zimbabwe
advertise applications for a business license.
South Africa made starting a business easier by introducing an online portal to
DB2017 South Africa
search for a company name.
Mozambique made starting a business more difficult by increasing registration
DB2017 Mozambique
and notary fees.
Malawi made starting a business easier by eliminating the legal requirement to
DB2017 Malawi
use a company seal and making it optional for entrepreneurs.
Madagascar made starting a business easier by reducing the number of
DB2017 Madagascar
procedures needed to register a company.
Angola made starting a business easier by eliminating the paid-in minimum
DB2017 Angola
capital requirement.
Angola made starting a business easier by improving registration procedures and
DB2016 Angola
reducing the fees to register a company.
The Democratic Republic of Congo made starting a business easier by simplifying
DB2016 Congo, Dem. Rep.
registration procedures and reducing the minimum capital requirement.
Madagascar made starting a business more difficult by requiring a bank-certified
DB2016 Madagascar
check to pay the tax authority.
Zambia made starting a business more difficult by increasing the registration
DB2016 Zambia
fees.
DB2015 Tanzania Tanzania made starting a business more difficult by increasing registration fees.
Swaziland made starting a business easier by shortening the notice and objection
DB2015 Swaziland
period for obtaining a new trade license.
Page 62
DB2015 Mauritius Mauritius made starting a business easier by reducing trade license fees.
Zambia made starting a business more difficult by increasing the registration
DB2016 Zambia
fees.
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
DB2015 Tanzania Tanzania made starting a business more difficult by increasing registration fees.
Swaziland made starting a business easier by shortening the notice and objection
DB2015 Swaziland
period for obtaining a new trade license.
DB2015 Mauritius Mauritius made starting a business easier by reducing trade license fees.
Malawi made starting a business easier by streamlining company name search
DB2015 Malawi and registration and by eliminating the requirement for inspection of company
premises before issuance of a business license.
The Democratic Republic of Congo made starting a business easier by creating a
DB2015 Congo, Dem. Rep.
one-stop shop.
The Democratic Republic of Congo made starting a business more complicated
by increasing the minimum capital requirement. At the same time, it made the
DB2014 Congo, Dem. Rep.
process easier by reducing the time and by eliminating the requirement to
obtain a certificate confirming the location of the new company’s headquarters.
Madagascar made starting a business more difficult by increasing the cost to
DB2014 Madagascar
register with the National Center for Statistics.
Swaziland made starting a business easier by shortening the administrative
DB2014 Swaziland
processing times for registering a new business and obtaining a trading license.
Zambia made starting a business easier by raising the threshold at which value
DB2014 Zambia
added tax registration is required.
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.
Madagascar made starting a business easier by allowing the one-stop shop to
DB2013 Madagascar
deal with the publication of the notice of incorporation.
Lesotho made starting a business easier by creating a one-stop shop for
DB2013 Lesotho company incorporation and by eliminating the requirements for paid-in
minimum capital and for notarization of the articles of association.
The Democratic Republic of Congo made starting a business easier by appointing
DB2013 Congo, Dem. Rep.
additional public notaries.
The Democratic Republic of Congo made business start-up faster by reducing the
DB2012 Congo, Dem. Rep. time required to complete company registration and obtain a national
identification number.
Madagascar eased the process of starting a business by eliminating the
DB2012 Madagascar minimum capital requirement, but also made it more difficult by introducing the
requirement of obtaining a tax identification number.
South Africa made starting a business easier by implementing its new company
DB2012 South Africa
law, which simplified the incorporation documents.
Zimbabwe eased business start-up by reducing registration fees and speeding up
DB2011 Zimbabwe
the name search process and company and tax registration.
Zambia eased business start-up by eliminating the minimum capital
DB2011 Zambia
requirement.
Mozambique eased business start-up by introducing a simplified licensing Page 63
DB2011 Mozambique
law, which simplified the incorporation documents.
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT
Zimbabwe COMMUNITY
eased business start-up (SADC)
by reducing registration fees and speeding up
DB2011 Zimbabwe
the name search process and company and tax registration.
Zambia eased business start-up by eliminating the minimum capital
DB2011 Zambia
requirement.
Mozambique eased business start-up by introducing a simplified licensing
DB2011 Mozambique
process.
The Democratic Republic of Congo eased business start-up by eliminating
DB2011 Congo, Dem. Rep.
procedures, including the company seal.
Dealing with Construction Permits
DB Year Economy Reform
Angola made dealing with construction permits easier and less time consuming
DB2018 Angola
by improving the only application system
The Democratic Republic of Congo made dealing with construction permits more
expensive by revising the formula to assess building permit fees. At the same
DB2018 Congo, Dem. Rep. time, the Democratic Republic of Congo made dealing with construction permits
more transparent by publishing all regulations related to construction online free
of charge.
Malawi made dealing with construction permits cheaper by halving the fees
DB2018 Malawi
charged by the city council to process building plan approvals.
Mauritius made dealing with construction permits faster by outsourcing the
DB2018 Mauritius
design and construction of sewerage connection works.
The Seychelles increased the transparency of dealing with construction permits
DB2018 Seychelles
by publishing construction industry regulations online free of charge.
Swaziland made dealing with construction permits more cumbersome by
DB2018 Swaziland introducing the requirement of all new construction projects to be registered
with the Construction Industry Council and to make a levy payment.
Tanzania made dealing with construction permits easier by implementing a one-
DB2018 Tanzania
stop shop and streamlining the building permit process.
Zimbabwe made dealing with construction permits faster by streamlining the
DB2017 Zimbabwe
building plan approval process.
Zambia made dealing with construction permits more costly by raising the costs
DB2017 Zambia
associated with submitting a brief to the environmental agency.
Madagascar increased the transparency of dealing with construction permits by
DB2017 Madagascar
publishing construction-related regulations online and free of charge.
The Democratic Republic of Congo made dealing with construction permits
DB2017 Congo, Dem. Rep. easier by improving building quality control and reducing the time it takes to
obtain the building permit.
Botswana made dealing with construction permits easier by getting rid of the
DB2017 Botswana requirement to submit a rates clearance certificate in order to obtain a building
permit.
The Democratic Republic of Congo made dealing with construction permits less
DB2016 Congo, Dem. Rep.
expensive by halving the cost to obtain a building permit.
Page 64
In Mauritius the time required for dealing with construction permits was reduced
Botswana made dealing with construction permits easier by getting rid of the
Doing
DB2017Business 2018 SOUTHERN AFRICAN
Botswana DEVELOPMENT
requirement COMMUNITY
to submit a rates (SADC)in order to obtain a building
clearance certificate
permit.
The Democratic Republic of Congo made dealing with construction permits less
DB2016 Congo, Dem. Rep.
expensive by halving the cost to obtain a building permit.
In Mauritius the time required for dealing with construction permits was reduced
DB2016 Mauritius by the hiring of a more efficient subcontractor to establish sewerage
connections.
In Namibia the process of dealing with construction permits became more time-
DB2016 Namibia
consuming as a result of inefficiency at the municipality.
Madagascar made dealing with construction permits easier by reducing the time
DB2015 Madagascar
needed to obtain a building permit.
The Democratic Republic of Congo made dealing with construction permits more
DB2015 Congo, Dem. Rep.
costly by increasing the building permit fee.
Botswana made dealing with construction permits easier by eliminating the
DB2014 Botswana
requirement for an environmental impact assessment for low-risk projects.
Mozambique made dealing with construction permits easier by improving
DB2014 Mozambique internal processes at the Department of Construction and Urbanization—though
it also increased the fees for building permits and occupancy permits.
Tanzania made dealing with construction permits more expensive by increasing
DB2013 Tanzania
the cost to obtain a building permit.
Malawi made dealing with construction permits more expensive by increasing
DB2013 Malawi
the cost to obtain the plan approval and to register the property.
The Democratic Republic of Congo reduced the administrative costs of obtaining
DB2012 Congo, Dem. Rep.
a construction permit.
Dealing with construction permits became easier in the Democratic Republic of
DB2011 Congo, Dem. Rep. Congo thanks to a reduction in the cost of a building permit from 1% of the
estimated construction cost to 0.6% and a time limit for issuing building permits.
Getting Electricity
DB Year Economy Reform
Angola made getting electricity easier by upgrading Luanda’s electrical grid,
DB2018 Angola thereby reducing the time it takes for the utility to complete feasibility studies
for new connections.
Mozambique reduced the time to get an electricity connection by streamlining
DB2018 Mozambique procedures through the utility instead of different agencies. It also reduced costs
by eliminating the security deposit for large commercial clients.
The utility in Botswana made getting electricity easier by enforcing service
DB2016 Botswana delivery timelines for new connections and improving the stock of materials for
connection works.
Malawi reduced the time required to get electricity by engaging subcontractors
DB2015 Malawi
to carry out external connection works.
In the Democratic Republic of Congo the utility in Kinshasa made getting
DB2015 Congo, Dem. Rep. electricity easier by reducing the number of approvals required for new
connections and reducing the burden of the security deposit. Page 65
connection works.
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT
Malawi reduced COMMUNITY
the time required (SADC)by engaging subcontractors
to get electricity
DB2015 Malawi
to carry out external connection works.
In the Democratic Republic of Congo the utility in Kinshasa made getting
DB2015 Congo, Dem. Rep. electricity easier by reducing the number of approvals required for new
connections and reducing the burden of the security deposit.
Namibia made getting electricity easier by reducing the time required to provide
DB2013 Namibia
estimates and external connection works and by lowering the connection costs.
Angola made getting electricity easier by eliminating the requirement for
DB2013 Angola customers applying for an electricity connection to obtain authorizations from
the 2 utility companies.
Mozambique made getting electricity more difficult by requiring authorization of
DB2012 Mozambique a connection project by the Ministry of Energy and by adding an inspection of the
completed external works.
Registering Property
DB Year Economy Reform
Botswana made registering property more difficult by reducing the efficiency of
DB2018 Botswana
its Registrar of Deeds as it implements the computerization of manual records.
Mauritius made it easier to transfer property by eliminating the transfer tax and
DB2018 Mauritius registration duty, implementing a complaint mechanism and publishing service
standards.
The Seychelles improved the quality of its land administration system by
DB2018 Seychelles
digitizing its maps and introducing a complaint mechanism.
Tanzania made registering property more expensive by increasing the land and
DB2018 Tanzania
property registration fee.
Zimbabwe made registering property easier by launching an official website
containing information on the list of documents and fees for completing a
DB2017 Zimbabwe
property transaction, as well as, a specific time frame for delivering a legally
binding document that proves property ownership.
DB2017 Zambia Zambia made it more affordable to transfer property by decreasing the property
South Africa made it more expensive to transfer property by increasing the
DB2017 South Africa
property transfer tax.
DB2017 Mauritius Mauritius made registering property easier by digitizing its land records.
The Democratic Republic of Congo made it more expensive to transfer property
DB2017 Congo, Dem. Rep.
by increasing the property transfer tax.
Madagascar made transferring property less costly by lowering the property
DB2016 Madagascar
transfer tax.
Zambia made transferring property more difficult by increasing the property
DB2015 Zambia
transfer tax rate.
Mozambique made registering property easier by streamlining procedures at
DB2015 Mozambique
the land registry and municipality.
Lesotho made transferring property easier by streamlining procedures and
DB2014 Lesotho
increasing administrative efficiency.
Page 66
transfer tax rate.
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT
Mozambique COMMUNITY
made registering (SADC)
property easier by streamlining procedures at
DB2015 Mozambique
the land registry and municipality.
Lesotho made transferring property easier by streamlining procedures and
DB2014 Lesotho
increasing administrative efficiency.
DB2014 Malawi Malawi made transferring property easier by reducing the stamp duty.
Namibia made transferring property more expensive by increasing the transfer
DB2014 Namibia
and stamp duties.
Namibia made transferring property more difficult by requiring conveyancers to
DB2013 Namibia
obtain a building compliance certificate beforehand.
Mauritius made property transfers faster by implementing an electronic
DB2013 Mauritius
information management system at the Registrar-General’s Department.
DB2012 Angola Angola made transferring property less costly by reducing transfer taxes.
Malawi made property registration slower by no longer sustaining last year’s
DB2012 Malawi time improvement in Compliance Certificate processing times at the Ministry of
Lands.
DB2012 Namibia Namibia made transferring property more expensive for companies.
South Africa made transferring property less costly and more efficient by
DB2012 South Africa
reducing the transfer duty and introducing electronic filing.
Swaziland made transferring property quicker by streamlining the process at the
DB2012 Swaziland
land registry.
Zambia made registering property more costly by increasing the property
DB2012 Zambia
transfer tax rate.
Malawi eased property transfers by cutting the wait for consents and registration
DB2011 Malawi
of legal instruments by half.
The Democratic Republic of Congo reduced by half the property transfer tax to
DB2011 Congo, Dem. Rep.
3% of the property value.
Getting Credit
DB Year Economy Reform
Madagascar improved access to credit information by increasing the coverage of
DB2018 Madagascar
the credit registry.
Malawi strengthened access to credit by adopting a new law that establishes
DB2018 Malawi clear priority rules inside and outside bankruptcy procedures. Malawi improved
access to credit information by establishing a new credit bureau.
Swaziland improved access to credit information by adopting a law that
DB2018 Swaziland
guarantees borrowers' right to access their own data.
Zambia strengthened access to credit by introducing a new Movable Property
Act and by setting up a new collateral registry. The new law implemented a
DB2018 Zambia functional secured transactions system. The collateral registry is operational,
unified geographically, searchable by a debtor’s unique identifier, modern, and
notice based.
Zimbabwe improved access to credit information by launching a new credit
DB2018 Zimbabwe Page 67
registry. However, credit scoring was discontinued, reducing access to credit
DB2018 Zambia functional secured transactions system. The collateral registry is operational,
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT
unified geographically, COMMUNITY
searchable (SADC)
by a debtor’s unique identifier, modern, and
notice based.
Zimbabwe improved access to credit information by launching a new credit
DB2018 Zimbabwe registry. However, credit scoring was discontinued, reducing access to credit
information.
Zimbabwe improved access to credit information by allowing the establishment
DB2017 Zimbabwe
of a credit registry.
The credit bureau in Tanzania expanded credit bureau borrower coverage and
DB2017 Tanzania
began to distribute credit data from retailers.
Mozambique improved access to credit information by enacting a law that allows
DB2017 Mozambique
the establishment of a new credit bureau.
Malawi strengthened access to credit by adopting a new law on secured
DB2017 Malawi transactions that implements a functional secured transactions system and
establishes a centralized, notice-based, online collateral registry.
Lesotho improved access to credit information by expanding the coverage of its
DB2017 Lesotho
credit bureau.
Lesotho improved access to credit information by establishing its first credit
DB2016 Lesotho
bureau.
Madagascar improved access to credit by broadening the range of assets that
can be used as collateral (including future assets), by allowing a general
DB2016 Madagascar
description of assets granted as collateral and by allowing a general description
of debts and obligations.
Namibia improved access to credit information by guaranteeing by law
DB2016 Namibia
borrowers’ right to inspect their own data.
The Seychelles improved access to credit information by establishing a credit
DB2016 Seychelles
registry.
DB2016 Zambia In Zambia the credit bureau began to provide credit scores.
DB2016 Zimbabwe In Zimbabwe the credit bureau began to provide credit scores.
In Zambia, the credit bureau improved access to credit information by starting to
DB2015 Zambia
exchange credit information with retailers and utilities.
DB2015 Tanzania Tanzania improved access to credit information by creating credit bureaus.
South Africa made access to credit information more difficult by introducing
regulations requiring credit bureaus to remove negative credit information from
DB2015 South Africa
their databases, such as adverse information on consumer behavior or
enforcement action accumulated on a consumer’s record before April 1, 2014.
The Democratic Republic of Congo improved access to credit information by
DB2015 Congo, Dem. Rep.
establishing a credit registry.
The Democratic Republic of Congo strengthened its secured transactions system
by adopting the OHADA (Organization for the Harmonization of Business Law in
Africa) Uniform Act on Secured Transactions. The new law broadens the range of
DB2014 Congo, Dem. Rep.
assets that can be used as collateral (including future assets) and the range of
obligations that can be secured, extends security interests to the proceeds of the
original asset and introduces the possibility of out-of-court enforcement.
Page 68
enforcement action accumulated on a consumer’s record before April 1, 2014.
Doing Business 2018 SOUTHERN AFRICAN Republic ofCOMMUNITY
DEVELOPMENT
The Democratic (SADC)
Congo improved access to credit information by
DB2015 Congo, Dem. Rep.
establishing a credit registry.
The Democratic Republic of Congo strengthened its secured transactions system
by adopting the OHADA (Organization for the Harmonization of Business Law in
Africa) Uniform Act on Secured Transactions. The new law broadens the range of
DB2014 Congo, Dem. Rep.
assets that can be used as collateral (including future assets) and the range of
obligations that can be secured, extends security interests to the proceeds of the
original asset and introduces the possibility of out-of-court enforcement.
Mauritius improved access to credit information by expanding the scope of
DB2014 Mauritius credit information and increasing the coverage of the historical data distributed
from 2 years to 3.
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.
Seychelles improved access to credit information by adopting new regulations
DB2013 Seychelles
that provide for the establishment and operation of a credit registry database.
Mauritius improved access to credit information by starting to collect payment
DB2013 Mauritius information from retailers and beginning to distribute both positive and negative
information.
Angola strengthened its credit information system by adopting new rules for
DB2012 Angola
credit bureaus and guaranteeing the right of borrowers to inspect their data.
Madagascar improved its credit information system by eliminating the minimum
DB2012 Madagascar threshold for loans included in the database and making it mandatory for banks
to share credit information with the credit bureau.
Malawi improved its credit information system by passing a new law allowing the
DB2012 Malawi
creation of a private credit bureau.
Protecting Minority Investors
DB Year Economy Reform
Malawi strengthened minority investor protections by increasing shareholder
rights and role in major corporate decisions, by clarifying ownership and control
DB2017 Malawi structures through the prohibition of a subsidiary company from acquiring
shares issued by its parent company, and by extending the ability for
shareholders to recover their legal expenses.
Madagascar strengthened minority investor protections by requiring that
DB2016 Madagascar directors with a conflict of interest fully disclose the nature of their interest to
the board of directors.
Zimbabwe strengthened minority investor protections by introducing provisions
DB2016 Zimbabwe allowing legal practitioners to enter into contingency fee agreements with
clients.
The Democratic Republic of Congo strengthened minority investor protections
by introducing greater requirements for disclosure of related-party transactions
DB2015 Congo, Dem. Rep. to the board of directors and by making it possible for shareholders to inspect
the documents pertaining to related-party transactions and to appoint auditors
to conduct an inspection of such transactions.
The Democratic Republic of Congo strengthened investor protections by
Page 69
adopting the OHADA Uniform Act on Commercial Companies and Economic
DB2015 Congo, Dem. Rep. to the board of directors and by making it possible for shareholders to inspect
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT
the documents COMMUNITY
pertaining to (SADC)
related-party transactions and to appoint auditors
to conduct an inspection of such transactions.
The Democratic Republic of Congo strengthened investor protections by
adopting the OHADA Uniform Act on Commercial Companies and Economic
DB2014 Congo, Dem. Rep. Interest Groups, which introduces additional approval and disclosure
requirements for related-party transactions and makes it possible to sue
directors when such transactions harm the company.
Lesotho strengthened investor protections by increasing the disclosure
DB2013 Lesotho requirements for related-party transactions and improving the liability regime
for company directors in cases of abusive related-party transactions.
Swaziland strengthened investor protections by requiring greater corporate
disclosure, higher standards of accountability for company directors and greater
DB2011 Swaziland access to corporate information for minority investors. Swaziland reduced the
time to import by implementing an electronic data interchange system for
customs at its border posts.
Paying Taxes
DB Year Economy Reform
Botswana made paying taxes easier by establishing an online system for filing
DB2018 Botswana
and paying taxes.
Zambia made paying taxes easier by introducing an online platform for filing and
DB2018 Zambia paying taxes. Paying taxes was also made less costly through a reduction of the
property transfer tax rate.
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.
South Africa made paying taxes more costly by increasing the rates of vehicle tax
and property tax. At the same time the rate of social security contributions paid
DB2017 South Africa
by employers was reduced. South Africa made paying taxes more complicated
by increasing the time it takes to prepare VAT returns.
Angola made paying taxes easier and less costly by reducing the frequency of
advance payments of corporate income tax and increasing the allowable
DB2017 Angola deductions for bad debt provisions. At the same time, Angola made interest
income tax a final tax that is not deductible for the calculation of corporate
income tax.
Angola made paying taxes less costly for companies by reducing the corporate
DB2016 Angola
income tax rate.
The Democratic Republic of Congo made paying taxes more complicated for
DB2016 Congo, Dem. Rep. companies by introducing a new social security contribution paid by employers,
though it subsequently reduced the rate of the contribution.
Mozambique made paying taxes easier and less costly for companies by
DB2016 Mozambique implementing an online system for filing social security contributions and by
increasing the depreciation rate for copying machines.
Swaziland made paying taxes less costly for companies by reducing the
DB2016 Swaziland corporate income tax rate. On the other hand, Swaziland raised the ceiling for
the National Provident Fund contribution.
Page 70
Zambia made paying taxes easier for companies by implementing electronic
Mozambique made paying taxes easier and less costly for companies by
Doing
DB2016Business 2018 SOUTHERN AFRICAN
Mozambique DEVELOPMENT
implementing COMMUNITY
an online system (SADC)
for filing social security contributions and by
increasing the depreciation rate for copying machines.
Swaziland made paying taxes less costly for companies by reducing the
DB2016 Swaziland corporate income tax rate. On the other hand, Swaziland raised the ceiling for
the National Provident Fund contribution.
Zambia made paying taxes easier for companies by implementing electronic
DB2016 Zambia filing and payment for VAT. At the same time, Zambia made paying taxes more
costly by increasing the property transfer tax rate.
Zambia made paying taxes easier for companies by abolishing the medical levy
DB2015 Zambia and by introducing an online system for filing corporate income tax, VAT and
some labor taxes. At the same time, it also increased the property transfer tax.
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.
Swaziland made paying taxes less costly for companies by reducing the
DB2015 Swaziland
corporate income tax rate.
The Seychelles made paying taxes easier for companies by reducing the
business tax rate applicable to income above 1 million Seychelles rupees
DB2015 Seychelles ($77,700) and by introducing a simplified new tax return allowing joint filing and
payment of the business tax, VAT and corporate social responsibility tax. On the
other hand, it increased employers’ pension fund contribution rate.
Namibia made paying taxes more complicated for companies by introducing a
DB2015 Namibia
new vocational education and training levy.
The Democratic Republic of Congo made paying taxes easier for companies by
simplifying corporate income tax returns and abolishing the minimum tax
DB2015 Congo, Dem. Rep.
payable depending on a company’s size. On the other hand, it increased the rate
for the minimum lump-sum tax applied to annual revenue.
The Democratic Republic of Congo made paying taxes more costly for
DB2014 Congo, Dem. Rep.
companies by increasing the employers' social security contribution rate.
Madagascar made paying taxes easier and less costly for companies by training
DB2014 Madagascar taxpayers in the use of the online system for value added tax declarations and by
reducing the corporate income tax rate.
The Seychelles made paying taxes more complicated for companies by
DB2014 Seychelles
introducing a value added tax.
South Africa made paying taxes easier for companies by replacing the secondary
DB2014 South Africa
tax on companies with a dividend tax borne by shareholders.
DB2013 Swaziland Swaziland introduced value added tax.
DB2013 Malawi Malawi introduced a mandatory pension contribution for companies.
Botswana made paying taxes more costly for companies by increasing the profit
DB2013 Botswana
tax rate.
The Democratic Republic of Congo made paying taxes easier for firms by
DB2012 Congo, Dem. Rep.
replacing the sales tax with a value added tax.
The Seychelles made paying taxes less costly for firms by eliminating the social
DB2012 Seychelles Page 71
security tax.
tax rate.
Doing Business 2018 SOUTHERN AFRICAN Republic ofCOMMUNITY
DEVELOPMENT
The Democratic (SADC)
Congo made paying taxes easier for firms by
DB2012 Congo, Dem. Rep.
replacing the sales tax with a value added tax.
The Seychelles made paying taxes less costly for firms by eliminating the social
DB2012 Seychelles
security tax.
Zimbabwe reduced the corporate income tax rate from 30% to 25%, lowered the
DB2011 Zimbabwe capital gains tax from 20% to 5% and simplified the payment of corporate
income tax by allowing quarterly payment through commercial banks.
The Seychelles removed the tax-free threshold limit and lowered corporate
DB2011 Seychelles
income tax rates.
DB2011 Mauritius Mauritius introduced a new corporate social responsibility tax.
DB2011 Madagascar Madagascar continued to reduce corporate tax rates.
Trading across Borders
DB Year Economy Reform
Angola made trading across borders easier by improving infrastructure at the
DB2018 Angola
Port of Luanda.
Botswana made trading across borders easier by implementing a new
DB2018 Botswana
automated customs data management system.
Malawi made exporting and importing easier by upgrading to a web-based
DB2018 Malawi
customs data management platform, ASYCUDA World.
Mauritius made trading across borders easier by improving the Cargo
DB2018 Mauritius Community System, introducing advanced electronic document submission and
updating the risk-based inspection system.
Mozambique made exporting easier by improving infrastructure at the Maputo-
DB2018 Mozambique
Matola port complex.
Swaziland made exporting and importing easier by implementing a web-based
DB2018 Swaziland
customs data management platform, ASYCUDA World.
Zambia made exporting and importing easier by implementing a web-based
DB2018 Zambia
customs data management platform, ASYCUDA World.
Zimbabwe made trading across borders more difficult by introducing a
DB2017 Zimbabwe
mandatory pre-shipment inspection for imported products.
Madagascar made trading across borders easier by simplifying and streamlining
customs procedures and implementing an electronic data interchange system,
DB2017 Madagascar
which reduced the time for preparation and submission of trade documents for
both exporting and importing.
The Democratic Republic of Congo made trading across borders more difficult by
DB2016 Congo, Dem. Rep.
increasing the port handling time and cost for exporting and importing.
Madagascar reduced the time for border compliance for both exporting and
DB2016 Madagascar importing by upgrading port infrastructure—and also reduced the time for
documentary compliance for importing.
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.
Page 72
Madagascar reduced the time for border compliance for both exporting and
Doing
DB2016Business 2018 SOUTHERN AFRICAN
Madagascar DEVELOPMENT
importing COMMUNITY
by upgrading port (SADC)
infrastructure—and also reduced the time for
documentary compliance for importing.
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.
Zambia increased the documentary and border compliance time for both
exporting and importing by shifting all clearance authority to a central processing
DB2016 Zambia
center at the initial stage of implementing a web-based customs platform
(ASYCUDA World).
Tanzania made trading across borders easier by upgrading infrastructure at the
DB2015 Tanzania
port of Dar es Salaam.
Angola increased documentation requirements for cross-border trade by
DB2014 Angola introducing a mandatory registration for all traders and a new license for export
and import transactions.
Madagascar made trading across borders easier by rolling out an online platform
DB2014 Madagascar linking trade operators with government agencies involved in the trade process
and customs clearance.
Mozambique made trading across borders easier by implementing an electronic
DB2014 Mozambique
single-window system.
Swaziland made trading across borders easier by streamlining the process for
DB2014 Swaziland
obtaining a certificate of origin.
Tanzania made importing more difficult by introducing a requirement to obtain a
DB2013 Tanzania
certificate of conformity before the imported goods are shipped.
South Africa reduced the time and documents required to export and import
DB2013 South Africa
through its ongoing customs modernization program.
Trading across borders in Malawi became easier thanks to improvements in
DB2013 Malawi customs clearance procedures and transport links between the port of Beira in
Mozambique and Blantyre.
In Botswana exporting and importing became faster thanks to the introduction of
DB2013 Botswana a scanner by the country’s customs authority and an upgrade of South Africa’s
customs declaration system, both at the Kopfontein–Tlokweng border post.
The Seychelles made trading across borders faster by introducing electronic
DB2012 Seychelles
submission of customs documents.
Tanzania made trading across borders faster by implementing the Pre-Arrival
DB2012 Tanzania
Declaration (PAD) system and electronic submission of customs declaration.
Zambia eased trade by implementing a one-stop border post with Zimbabwe,
DB2011 Zambia launching web-based submission of customs declarations and introducing
scanning machines at border posts.
Swaziland reduced the import time of trading across borders by implementing
DB2011 Swaziland
an electronic data interchange system for customs at its border posts.
Madagascar improved communication and coordination between customs and
DB2011 Madagascar the terminal port operators through its single-window system (GASYNET),
reducing both the time and the cost to export and import.
Angola reduced the time for trading across borders by making investmentsPage 73
in
DB2011 Angola
scanning machines at border posts.
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT
Swaziland COMMUNITY
reduced the import (SADC)
time of trading across borders by implementing
DB2011 Swaziland
an electronic data interchange system for customs at its border posts.
Madagascar improved communication and coordination between customs and
DB2011 Madagascar the terminal port operators through its single-window system (GASYNET),
reducing both the time and the cost to export and import.
Angola reduced the time for trading across borders by making investments in
DB2011 Angola
port infrastructure and administration.
Enforcing Contracts
DB Year Economy Reform
Namibia made enforcing contracts easier by introducing an electronic filing
DB2018 Namibia system and an electronic case management system for the use of judges and
lawyers.
South Africa made enforcing contracts easier by amending the monetary
DB2015 South Africa
jurisdiction of its lower courts and introducing voluntary mediation.
Seychelles made enforcing contracts easier by establishing a commercial court,
DB2015 Seychelles implementing and refining its case management system, introducing court-
annexed mediation, and addressing scheduling conflicts within the courts.
Mauritius made enforcing contracts easier by introducing an electronic filing
DB2015 Mauritius
system for court users.
Mauritius made enforcing contracts easier by liberalizing the profession of court
DB2014 Mauritius ushers, including by allowing registered ushers to serve as bailiffs in carrying out
enforcement proceedings.
Lesotho made enforcing contracts easier by launching a specialized commercial
DB2012 Lesotho
court.
The Seychelles expanded the jurisdiction of the lower court, increasing the time
DB2012 Seychelles
required to enforce contracts.
Zambia improved contract enforcement by introducing an electronic case
DB2011 Zambia management system in the courts that provides electronic referencing of cases,
a database of laws, real-time court reporting and public access to court records.
Mauritius speeded up the resolution of commercial disputes by recruiting more
DB2011 Mauritius
judges and adding more courtrooms.
Malawi simplified the enforcement of contracts by raising the ceiling for
DB2011 Malawi
commercial claims that can be brought to the magistrates court.
Resolving Insolvency
DB Year Economy Reform
Malawi made resolving insolvency easier by introducing a reorganization
DB2018 Malawi procedure, facilitating continuation of the debtor’s business during insolvency
proceedings and introducing regulations for insolvency practitioners.
The Democratic Republic of Congo made resolving insolvency easier by
DB2017 Congo, Dem. Rep. introducing a new conciliation procedure for companies in financial difficulties
and a simplified preventive settlement procedure for small companies.
The Seychelles made resolving insolvency easier by introducing a reorganization
DB2015 Seychelles Page 74
procedure, provisions on the avoidance of undervalued transactions and the
The Democratic Republic of Congo made resolving insolvency easier by
Doing
DB2017Business 2018 SOUTHERN
Congo, Dem. Rep. AFRICAN DEVELOPMENT
introducing COMMUNITY
a new conciliation (SADC)
procedure for companies in financial difficulties
and a simplified preventive settlement procedure for small companies.
The Seychelles made resolving insolvency easier by introducing a reorganization
DB2015 Seychelles procedure, provisions on the avoidance of undervalued transactions and the
possibility to request post-commencement financing during the reorganization.
Mozambique made resolving insolvency easier by introducing a court-supervised
reorganization procedure and a mechanism for prepackaged reorganizations, by
DB2015 Mozambique
clarifying rules on the appointment and qualifications of insolvency
administrators and by strengthening creditors’ rights.
The Democratic Republic of Congo made resolving insolvency easier by adopting
the OHADA Uniform Act Organizing Collective Proceedings for Wiping Off Debts.
DB2014 Congo, Dem. Rep. The law allows an insolvent debtor to file for preventive settlement, legal redress
or liquidation and sets out clear rules on the steps and procedures for each of
the options available.
Mauritius made resolving insolvency easier by introducing guidelines for out-of-
DB2014 Mauritius court restructuring and standardizing the process of registration, suspension and
removal of insolvency practitioners.
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.
Zambia strengthened its insolvency process by introducing further qualification
DB2013 Zambia requirements for receivers and liquidators and by establishing specific duties
and remuneration rules for them.
Malawi adopted new rules providing clear procedural requirements and time
DB2012 Malawi
frames for winding up a company.
Namibia adopted a new company law that established clear procedures for
DB2012 Namibia
liquidation.
South Africa introduced a new reorganization process to facilitate the
DB2012 South Africa
rehabilitation of financially distressed companies.
Page 75
liquidation.
Doing Business 2018 SOUTHERN AFRICAN DEVELOPMENT
South Africa COMMUNITY
introduced a new (SADC)
reorganization process to facilitate the
DB2012 South Africa
rehabilitation of financially distressed companies.
Page 76