Tanzania decreases further in WB’s doing business ranking

Tanzania’s reluctance to speedily reform its business environment may cost the country dearly as global reports – respected by investors – now rank East Africa’s second largest economy as the most business-unfriendly nation in the region.

Tanzania has dropped by 12 steps in the Doing Business Report 2014 – published yesterday by the World Bank and its private sector window, the International Finance Corporation (IFC) to settle on position 145 at global level.

According to the report, Tanzania has registered just two reforms this year, far behind Rwanda and Burundi – some of its peers in the East African Community (EAC).

Rwanda, which has emerged as a champion of business-friendly reforms during the past five years, made eight reforms this year. It remains on top of other EAC members.

Burundi, which used to tail the list at EAC level, has awaken and has made six reforms to clinch the fourth place – leaving Tanzania tailing the list.

Kenya is in position two while Uganda is now on position three. Burundi and Rwanda have also made it to the list of top ten reformers at global level.

“The 10 economies topping that list this year are (in order of improvement) Ukraine, Rwanda, the Russian Federation, the Philippines, Kosovo, Djibouti, Côte d’Ivoire, Burundi, the former Yugoslav Republic of Macedonia, and Guatemala,” reads a statement in the report released in Washington DC yesterday.

“A better business climate that enables entrepreneurs to build their businesses and reinvest in their communities is key to local and global economic growth,” said World Bank Group President Jim Yong Kim.

“Doing Business shows that economies with better business regulations are more likely to empower local entrepreneurs to create more jobs – another step in the right direction toward ending extreme poverty by 2030.”
Source: The Citizen, reported by Alawi Masare, from Dar es Salaam, Tanzania
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