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According to the Doing Business 2016: Measuring Regulatory Quality and Efficiency, a World Bank Group flagship publication, Ethiopia sits at 148th place out of 189 countries, rated based on ease of doing business. Singapore comes out on first place as the top performer while Eritrea sits at the bottom.
The annual report that is in its 13th edition looks into different quantitative indicators on business regulations and protection of properties rights in different countries.
The ease of doing business is measured by performances in specific areas including; ease of starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes and trading across borders, among other areas.
The key finding of the report shows that entrepreneurs in 122 economies saw improvements in their local regulatory framework last year. Around 231 business reforms to reduce the complexity and cost of regulatory processes have also been documented. Among the reforms, those in starting a business were the most common as reforms in the areas of paying taxes, getting electricity and registering property were also poplar.
A List of countries that improved significantly includes: Uganda, Kenya, Cyprus, Senegal and Benin. Sub-Saharan Africa alone accounted for about 30 percent of the regulatory reforms making it easier to do business last year, followed closely by Europe and Central Asia.
Members of the Organization for the Harmonization of Business Law in Africa were particularly active: 14 of the 17 economies implemented business regulation reforms in the past year, 29 in total. Twenty-four of these reforms reduced the complexity and cost of regulatory processes, while the other five strengthened legal institutions.
This year’s report adds quality to four indicator sets: registering property, dealing with construction permits, getting electricity and enforcing contracts. In addition, the trading across borders indicators have been revised to increase their relevance.
The underlying case study focuses on the top export product for each economy, on a very common manufactured product, auto parts, as its import product and on its largest trading partner for the export and import products.