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Summary:  

  • The 2018 World Bank’s Doing Business Report titled “Reforming to Create Jobs” published on October 31, 2017, ranked Rwanda the 2nd easiest place in Africa and the 41st in the world up from 56th last year. In Africa, Rwanda followed Mauritius (25th) and they are the only two Sub-Sahara African countries in the top 50 countries surveyed globally.
  • The report which covered 190 countries, investigates the regulations that enhance business activity and those that constrain it. It presents quantitative indicators on business regulation and the protection of property rights.
  •  It also measures aspects of regulation affecting 11 areas of the life of a business. Ten of these areas are included in this year’s ranking on the ease of doing business: 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, which is not included in this year’s ranking.
Highlights on Rwanda’s performance:
  • Similarly, Benin and Ghana improved transparency by making regulations concerning construction openly accessible online while Rwanda increased quality control during construction by introducing risk-based inspections. (P26)
  • Rwanda also made improvements to its property registration process in 2016/17. Rwanda reduced the time for a property transfer by introducing new online services such as user searches of property information and online property transfer filing and registration. (See Figure 3.4 P27) 
  • Thirteen economies—Azerbaijan, Brunei Darussalam, Djibouti, Arab Republic of Egypt, France, Indonesia, Kazakhstan, Lithuania, Malaysia, Nepal, Rwanda, Saudi Arabia and Uzbekistan—passed legislation in 2016/17 that increased corporate transparency requirements. These laws give more agenda-setting power to shareholders and disclose board member activities in other companies, executive compensation and audit reports. (P29)
  • Rwanda is among nine countries which took steps to clarify corporate governance, ownership and control structures by, for example, enacting legislation that requires companies to nominate independent board members and set up an audit committee. (P29)
  • These 11 economies—Costa Rica, Djibouti, Georgia, India, Kazakhstan, Luxembourg, Pakistan, Rwanda, Saudi Arabia, Thailand and Ukraine—improved on the extent of approval, extent of director liability and ease of shareholder suits indices. (P30)
  • Sub-Saharan Africa remains the region with the smallest share of economies using electronic filing or payments. However, in 2016 the use of online systems for filing and payment of taxes resulted in efficiency gains in several economies in the region, including Botswana, Kenya, Rwanda and Zambia. (P30)
  • Rwanda reduced the time to complete a property transfer from 12 to seven days, by reducing the time needed to conduct a title search and registration. (See Table 3A.1 P36)
  • Rwanda along with Azerbaijan; Hungary; Mauritania and Thailand expanded court automation by introducing electronic payment or by publishing judgments. Rwanda made decisions rendered at all levels in commercial cases publicly available.  (See Table 3A.1 P38)
  • In Rwanda, the city hall in Kigali must review the building permit application, including the plans and drawings, and both a licensed architect and a licensed engineer are part of the team that reviews the plans and drawings. Rwanda therefore receives a score of 1 on the quality control before construction index. (P76)
  • Rwanda made registering property easier by implementing online services to facilitate the registration of property transfers. (P137)
  • Rwanda strengthened minority investor protections by making it easier to sue directors, clarifying ownership and control structures and requiring greater corporate transparency.  (P137)
  • Rwanda made paying taxes easier by establishing an online system for filing and paying taxes. (P137)
The full report (PDF) is available here 

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