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SA 2012 Business Ranking Improves| News by Staff Reporter
According to the World Bank’s Doing Business Report 2012
South Africa has improved its ranking on the World Bank’s Doing Business Report 2012, reflecting improvements in the ease of starting a business, registering property and resolving insolvency.
South Africa’s ranking on the World Bank and International Finance Corporation’s (IFC) “Doing Business in a More Transparent World” report increased by one position from 36th in 2011 to 35th in 2012.
The report ranks the ease of doing business in a total of 183 economies around the world.
The Doing Business Report 2012 ranked South Africa 30 positions higher in the “Starting a Business” category than in 2011 (from 74 to 44), reflecting the effectiveness of the new Companies Act implemented in April, which has simplified the registration procedure and eliminated the requirement of having to reserve a company name. This meant a reduction of one procedure (to five) from last year, taking a total of 19 days (as opposed to 22 days in 2011) to complete.
When it came to ease of registering property in South Africa the report indicated an increase of 14 positions to 76. “Registering property requires six procedures, takes 23 days and costs 5.6% of the property value,” according to the World Bank’s report.
Enforcing contacts climbed four positions on the rankings to 81, according to the study.
The “Trading Across Borders” and “Resolving Insolvency” categories both gained two positions on the world rankings to 144th and 77th respectively.
There was no change in South Africa’s ranking of 31st in the “Dealing with construction permits” category over the two years. According to the report in South Africa when dealing with construction permits there are 13 procedures to follow taking a total of 127 days to complete.
For getting credit South Africa retained the number one ranking, shared with the United Kingdom, and there was also no change in the “Protecting Investors” category, which remained at tenth position.
The “Getting Electricity” category, however, declined two positions to 124th in 2012, reflecting a weaker performance than the sub-Saharan regional average ranking of 122 and falling short of Mauritius (44), Botswana (91), Namibia (105) and Kenya (115).
A decrease was also recorded in the “Paying Taxes” section with a decline of 26 positions to 44th. “On average, firms make nine tax payments a year, spend 200 hours a year filing, preparing and paying taxes and pay total taxes amounting to 24.4%,” said the World Bank.