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Ethiopia placed 159th out of 190 countries for ease of doing business, according to Doing Business 2017: Equal Opportunity for All, the World Bank Group’s annual report on the ease of doing business.
According to the report, Sub-Saharan Africa economies stepped up the pace of reform activity, with 37 economies undertaking a total of 80 business reforms in the past year, an increase of 14 percent from the previous year. For the second consecutive year, Kenya was among the world’s top 10 most improved, while seven economies implemented four or more reforms each in the past year. However, 13 economies in the region stipulate additional hurdles for women entrepreneurs.
A record 137 economies around the world have also adopted key reforms making it easier to start and operate small and medium-sized businesses, the report states.
The new report finds that developing countries carried out more than 75 percent of the 283 reforms in the past year, with Sub-Saharan Africa accounting for over one-quarter of all reforms.
In its global country rankings of business efficiency, Doing Business 2017 awarded its coveted top spot to New Zealand, Singapore ranks second, followed by Denmark; Hong Kong SAR, China; Republic of Korea; Norway; United Kingdom; United States; Sweden; and the former Yugoslav Republic of Macedonia. The world’s top 10 improvers, based on reforms undertaken, are Brunei Darussalam; Kazakhstan; Kenya; Belarus; Indonesia; Serbia; Georgia; Pakistan; United Arab Emirates (UAE); and Bahrain.
What are the ranking trends?
Mauritius, in 49th place in the Doing Business rankings, is the highest ranked economy in Sub-Saharan Africa. Other economies in the region that perform well on the ease of doing business rankings are Rwanda (at 56), Botswana (71) and South Africa (74).
The region’s lowest ranked economies are Somalia (190), Eritrea (189), South Sudan (186), and the Central African Republic (185).
Other large economies in the region and their rankings are Democratic Republic of Congo (184), Ethiopia (159), Kenya (92), Nigeria (169), Tanzania (132), Sudan (168), and Uganda (115).
Rwanda ranks among the best globally in the Doing Business areas of Getting Credit (with a rank of 2) and Registering Property (4). Rwanda has an efficient land registry and it takes only 12 days to transfer property, compared to 22 days across OECD high income economies.
Sub-Saharan Africa economies under perform in the areas of Getting Electricity (with an average rank of 151), Trading Across Borders (137), and Dealing with Construction Permits (133). It takes an average of 120 days to obtain a permanent electricity connection to the grid in Sub-Saharan Africa, compared to the global average of 93 days